Eternal shuts down Zomato Quick, Everyday services
Eternal (Zomato) Shuts Down Quick and Everyday Services Due to Profitability Concerns
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Eternal Ltd (formerly known as Zomato Ltd) has announced the discontinuation of its Zomato Quick and Everyday initiatives, citing concerns over sustainable profitability and insufficient market demand. The decision marks a significant shift in the company’s strategy as it focuses on optimizing its core delivery services.
Eternal Ltd shuts down Zomato Quick & Everyday initiatives due to lack of demand | Photo Credit: REUTERS
Zomato Quick Service Analysis
The Zomato Quick service, launched in January with the promise of delivering food in less than 15 minutes, faced significant operational challenges. Despite the innovative approach, the company found that the existing restaurant infrastructure wasn’t optimized for 10-minute deliveries, leading to inconsistent customer experiences.
“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,” stated Deepinder Goyal, Founder & CEO of Eternal.
Everyday Service Challenges
The Everyday service, launched in 2023, aimed to provide fresh, home-styled meals at affordable prices. However, the company discovered that the demand for homely meals was primarily limited to office locations in metropolitan areas, making it difficult to achieve satisfactory returns on investment at its current scale.
While these services are being discontinued, Eternal continues to operate Bistro by Blinkit as a separate app, maintaining its presence in the quick commerce space alongside competitors like Swiggy Snacc and Zepto Cafe.
Future Strategy and District App
Moving forward, Eternal is focusing on optimizing its standard delivery times to achieve a more efficient 20-25 minute delivery window, rather than pursuing extremely quick service without end-to-end supply chain control. The company’s management emphasized the importance of improving overall logistics and delivery system efficiency.
The company reported positive progress with its District app, with approximately one-third of the going-out Gross Order Value (GOV) being transacted through the platform in Q4FY25. Eternal plans to complete the full transition to the District app in the coming quarters, after which their going-out offering will be exclusively available on this platform.
“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),” added Goyal, highlighting the company’s commitment to evolving its service offerings based on market demands and operational efficiency.
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