More Stories

Informist, Thursday, May. 1, 2025

 

NEW DELHI – Eternal Ltd, formerly Zomato, announced Thursday that it was shutting down Zomato Quick and Everyday businesses. In a post-March quarter earnings shareholders' letter, the company's founder and Chief Executive Officer Deepinder Goyal said the company was not seeing the path to profitability in these without compromising on customer experience.

 

Goyal said the current restaurant density and kitchen infrastructure are not set up for delivering orders in 10 minutes which led to inconsistent customer experience. The company had earlier this calendar year rolled out Zomato Quick, a quick food delivery service, which promised users delivery within 15 minutes in select locations and with a dedicated delivery fleet. Goyal said in his shareholders' letter that Zomato Quick was run as an experiment for a few months but the company did not see any increment in demand.

 

Zomato Everyday was launched a couple of years back which provided customers from select locations from home-style and customised meals delivery service. According to Goyal, "The need for homely-meals is a limited use case largely for office locations in metros," and the company did not see enough return on investment "by keeping it running at a small scale".

 

To queries from analysts in a post-earnings conference call Thursday, Goyal said, "I would not say that it (Zomato Everyday) did not work," and business was doing well in the market it was in. "But I think the overall size of that business, in our mind, we didn't feel that it will move the needle for the food delivery business," he said. Further, the business was more operation intensive with a different business model, and the company did not see the value in continuing to run without seeing an opportunity to grow beyond a certain scale, Goyal said.

 

On Wednesday, shares of Eternal ended 0.6% higher at INR 232.52 on the National Stock Exchange of India Ltd.  End

 

Reported by Rajesh Gajra

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.