Zomato clarifies on shutting down several Blinkit stores, stock rallies 5%

Online food delivery giant, Zomato on Wednesday clarified over shutting down of several Blinkit stores.

The reason behind the unavailability of the instant groceries app would be the changes in the delivery partner payout across the Blinkit business.

Blinkit services were shut down for a few days. Following the clarification, Zomato shares rallied by at least 5%.

Exchanges had sought clarification from Zomato over a report that claimed Blinkit was temporarily unavailable.

Zomato on Wednesday released its response to exchanges.

Hence, Zomato said, they had to shut down some stores for a few days to ensure the safety of our employees at stores and the delivery partners.

But most of these stores have now resumed operations.

At the time of writing, Zomato shares traded at ₹54.51 apiece up by 2.17% on BSE.

The stock has gained by at least 4.8% on the exchange with an intraday high of ₹55.90 apiece.

The company's m-cap is over ₹46,625 crore at the current market price.