Eternal shuts down Zomato Quick, Everyday services

Eternal Ltd shuts down Zomato Quick & Everyday initiatives due to lack of demand.
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REUTERS

Eternal Ltd (formerly known as Zomato Ltd) on Thursday said it is shutting down Zomato Quick and Everyday initiatives as it is not seeing them emerge as sustainable models due to lack of demand.

The food delivery platform had launched Zomato Quick, which delivered food in less than 15-minutes in January. The company continues to run Bistro by Blinkit as a separate app which competes with players including Swiggy Snacc and Zepto Cafe.

In the shareholder letter, Deepinder Goyal stated, “We are actually shutting down both these initiatives as we are not seeing the path to profitability in these without compromising on customer experience. The current restaurant density & kitchen infrastructure is not set up for delivering orders in 10 minutes which leads to inconsistent customer experience. As a result, we did not see any incrementality in demand while we ran Quick as an experiment for a few months.”

On the earnings call, the company’s management said that Zomato Quick was an attempt to bring down the delivery time from about 30 minutes to an average of 10 minutes but it did not see any incrementality in demand. “ But of course there is a wid range between 10-30 minutes . So our view is that we should try and bring it down to 20-25 minutes over time by making the overall logistic fleet delivery system more efficient. Those are the gains we will chase now rathe than to build an extremely quick service without end-to-end control on the supply chain,” the company’s management added on the call.

In 2023, Zomato had launched Everyday, which focused on offering fresh and home-styled meals at affordable prices.

“With Everyday, we realized that the need for homely-meals is a limited use case largely for oce locations in metros. We did not see enough ROI by keeping it running at a small scale,” Goyal stated.

Meanwhile, the company said its District app is scaling up as per expectations. “The transition has been on expected lines. In Q4FY25, about one third of the going-out GOV was transacted through the District App. We expect to complete the full transition in the next couple of quarters, post which we will make our going-out offering accessible only on the District app. We will continue with our investments in getting customers to transition to the new app and grow selection on our platform (especially in the live events category),” Goyal added.