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Eternal shuts instant food-delivery service Quick; delists 19K restaurants
Food aggregator platform Eternal (formerly known as Zomato) said it has shuttered its instant food-delivery service 'Quick', citing an unclear path to profitability. The service was available on the Zomato app. In addition, while announcing its results for Q4FY25 on Thursday, Eternal said it delisted nearly 19,000 restaurants in the fourth quarter alone.
'We are actually shutting down both these initiatives (Zomato Quick and Everyday) as we are not seeing the path to profitability in these without compromising on customer experience. The current restaurant density and 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,' Deepinder Goyal, founder and chief executive officer of Eternal, said.
For Zomato Everyday, Goyal said the need for homely meals is a limited use case, largely for office locations in metros. 'We did not see enough ROI by keeping it running at a small scale,' Goyal added.
As for the restaurants that have been delisted, they either did not pass hygiene standards, were mimicking established brands and misleading customers, or were operating multiple identical menu listings.
'As one of the leading food delivery platforms, we think it is critical to weed out bad actors which erode trust in the category. While this did impact order volumes, this was the right thing to do for the long term,' the company said.
Overall, along with the delisting of around 19,000 restaurants, several factors impacted growth in the food delivery segment. These include sluggish demand (especially on discretionary spending), a temporary shortage of delivery partners due to their high demand in the quick commerce segment, and market competition, the company said.
Talking about competition in food delivery, Goyal said: 'Competition in food delivery has always been high, and the intensity of it hasn't changed in the last quarter. Our market share has been stable for the last few months and we are hoping we can drive some share gain going forward.'
As for its Q4FY25 performance, the company's net profit fell 77.7 per cent to ₹39 crore in the fourth quarter (Q4) of 2024–25 (FY25), compared to ₹175 crore during the same period a year ago. Net profit was down nearly 33.8 per cent from ₹59 crore in the third quarter (Q3) of FY25.
The adjusted revenue for the company's food delivery business dipped marginally to ₹2,409 crore in Q4, from ₹2,413 crore a quarter ago, and ₹2,050 crore in the year-ago period.
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