Reason Behind DUNZO DOWNFALL

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Dunzo, once a pioneer in hyperlocal delivery services in India, has seen a significant downfall in recent times. The primary reasons behind its decline include aggressive expansion without sustainable revenue models, high operational costs, stiff competition from larger players like Swiggy and Zomato, and lack of differentiation. Additionally, funding challenges and an over-reliance on discounts and customer acquisition without focusing on profitability have put immense pressure on the company. As Dunzo struggled to maintain its financial health, service reliability also took a hit, leading to customer dissatisfaction and loss of market share.
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