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Grofers pulls plug on operations in 9 cities

  • Online grocery
    platform Grofers has shut delivery operations in nine cities in the past 15
    days because of low acceptance of its services in these areas, co-founder
    Albinder Dhindsa said, according to a
    Mint
    report.
  •  
  • Grofers ran pilot
    • Online grocery
      platform Grofers has shut delivery operations in nine cities in the past 15
      days because of low acceptance of its services in these areas, co-founder
      Albinder Dhindsa said, according to a
      Mint
      report.
    •  
    • Grofers ran pilot
      projects in 15 new cities in September. The nine cities where it has decided to
      stop services include Ludhiana, Bhopal,
      Kochi, Coimbatore
      and Visakhapatnam.
    •  
    • “We ran a series of
      marketing campaigns including television ads in these cities to test the
      markets and see if the volume picks up,” said Dhindsa. Operations in cities
      that did not react to the marketing effort were shut. The company now operates
      in eight cities.
    •  
    • “The smaller cities
      are not ready for hyperlocal business yet, once they are, we will reconsider our
      strategy,” he added.
    •  
    • Grofers had a team of
      20-30 people employed in these cities. These employees are being relocated, the
      company said.
    •  
    • In November, Grofers
      raised $120 million in funding from Japan’s SoftBank Corp, Russian
      entrepreneur and venture capitalist Yuri Milner, and existing investors Tiger
      Global and Sequoia Capital, the report said.
    •  
    • “Our focus is to
      ensure that processes, systems and operations in the current 17 cities are
      fully efficient. For the next few months we are not looking to grow to any new city,” said Navneet
      Singh, another co-founder of the firm.

     

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