Food delivery company Zomato has announced that it will discontinue its delivery operations in Lebanon by the end of 2021.
The firm posted a statement to its social media accounts on Wednesday, which read: “We are sorry to go … but hey, you can still continue to use our app to search and discover restaurants, as you always did.”
The Indian food delivery company, which launched in Lebanon in 2014, is the latest of a number of multinationals to leave Lebanon amid a punishing financial crisis.
Last year, soft drink giant Coca-Cola announced it was leaving the Lebanese market, while others who have withdrawn include Victoria's Secret and Adidas, which announced the closure of its stores in the country this year.
Zomato's online ordering service reached thousands of users and marked half a million app downloads by 2018, the company's Lebanon manager Bechara Haddad said.
But the company was hit hard by Lebanon’s economic crisis, which has been declared one of the world’s worst since the mid-19th century by the World Bank.
Fuel shortages have crippled transportation in the country, which struck a blow for delivery workers struggling to make ends meet.
The delivery service has also been battling a local rival – Toters.
Several Zomato drivers told Reuters that their livelihoods had been affected by “fuel rationing, petrol queues, power cuts and price hikes” in the country.
The steep devaluation of the Lebanese pound also means that salaries paid in the national currency lost more than 90 per cent of their value since the onset of the crisis in 2019.
News of Zomato shutting down delivery services in Lebanon coincided with a statement by Saudi Arabia-owned media conglomerate MBC Group, revealing plans to close down its Beirut offices and relocate to Riyadh.
Staff were given the choice to relocate or resign.
The specs
Engine: 2.0-litre 4-cylinder turbo
Power: 240hp at 5,500rpm
Torque: 390Nm at 3,000rpm
Transmission: eight-speed auto
Price: from Dh122,745
On sale: now
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 247hp at 6,500rpm
Torque: 370Nm from 1,500-3,500rpm
Transmission: 10-speed auto
Fuel consumption: 7.8L/100km
Price: from Dh94,900
On sale: now
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
The biog
Name: Younis Al Balooshi
Nationality: Emirati
Education: Doctorate degree in forensic medicine at the University of Bonn
Hobbies: Drawing and reading books about graphic design
'Panga'
Directed by Ashwiny Iyer Tiwari
Starring Kangana Ranaut, Richa Chadha, Jassie Gill, Yagya Bhasin, Neena Gupta
Rating: 3.5/5
SPECS
Toyota land Cruiser 2020 5.7L VXR
Engine: 5.7-litre V8
Transmission: eight-speed automatic
Power: 362hp
Torque: 530Nm
Price: Dh329,000 (base model 4.0L EXR Dh215,900)
