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Business Standard
01-05-2025
- Business
- Business Standard
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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Business Standard
01-05-2025
- Business
- Business Standard
Zomato's parent Eternal Q4 net profit falls 78% to ₹39 cr, revenue up 64%
Eternal (formerly known as Zomato) reported a net profit of ₹39 crore for the fourth quarter of FY25, down 77.7 per cent year-on-year from ₹175 crore in the same period a year ago. On a sequential basis, profit was also down 33.8 per cent from ₹59 crore in the preceding quarter (Q3FY25). The company's revenue from operations rose 63.7 per cent year-on-year (Y-o-Y) to ₹5,833 crore in Q4, up from ₹3,562 crore a year ago. It had reported revenue of ₹5,405 crore in the previous quarter. On the profitability front, consolidated adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) declined 15 per cent Y-o-Y to ₹165 crore in Q4FY25, largely on account of enhanced investments in expanding the company's quick commerce store network. For the full year, the company reported consolidated operational revenue of ₹20,243 crore, up 67 per cent from ₹12,114 crore in FY24. PAT for the full year came in at ₹527 crore, up 50 per cent from last year's ₹351 crore. Zomato: Food Delivery Adjusted revenue for the company's food delivery segment grew 17 per cent Y-o-Y to ₹2,413 crore, up from ₹2,050 crore in the corresponding quarter of the previous financial year. On a sequential basis, food delivery revenue was down 0.2 per cent. Food delivery, which continues to be the firm's largest revenue contributor, has been experiencing some sluggishness. The company said this was due to a weak demand environment, a shortage of delivery partners driven by high demand in the quick commerce segment, and competition from packaged food deliveries by quick commerce players. The gross order value (GOV) decreased slightly from ₹9,913 crore in Q3FY25 to ₹9,778 crore in Q4FY25. However, GOV rose from ₹8,439 crore in Q4FY24 on a Y-o-Y basis. Also Read The average monthly transacting customers increased slightly to 20.9 million, compared to 20.5 million in the previous quarter. Talking about competition in food delivery, Deepinder Goyal, founder and chief executive officer (CEO) of Eternal, 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.' Eternal also said it delisted nearly 19,000 restaurants in the fourth quarter. These were restaurants that either did not pass hygiene standards, were mimicking established brands and misleading customers, or were operating multiple identical menu listings. The company mentioned shutting down its in-app instant food delivery services Zomato Quick and Zomato Everyday, adding that it does not see a path to profitability in these initiatives. '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,' Goyal said. For 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,' he added. Blinkit The quick commerce arm of Eternal reported Q4FY25 revenue of ₹1,709 crore, marking a 122.2 per cent increase from ₹769 crore in Q4FY24. The platform's GOV for the quarter rose to ₹9,421 crore from ₹7,798 crore a quarter ago. The average order value (AOV) came in at ₹665, down from ₹707 in the previous quarter. The platform's average monthly transacting customers also increased to 13.7 million in Q4FY25, up from 10.6 million in Q3FY25. Blinkit opened 294 net new stores in Q4FY25 — its highest-ever net store addition in a single quarter. According to the company, Blinkit is on track to reach 2,000 stores by December 2025. It currently has 1,301 stores. Blinkit also added one million square feet of new warehousing space for store expansion. On adjusted EBITDA losses increasing quarter-on-quarter from ₹103 crore to ₹178 crore, Albinder Dhindsa, founder and CEO of Blinkit, said: 'As mentioned in our last shareholders' letter, the increase in losses was expected and in line with our plan to pull forward expansion of our store network.' Going Out For Eternal's going-out business, revenue rose 146.2 per cent to ₹229 crore in Q4FY25, compared to ₹93 crore in the year-ago period. Meanwhile, GOV jumped to ₹2,184 crore in Q4FY25 from ₹1,069 crore in Q4FY24. The company said the District app is scaling well, and one-third of going-out GOV now comes from the app. Going forward, the company plans to focus on improving customer experience, expanding product categories, and enhancing its footprint. Hyperpure Hyperpure, Eternal's business-to-business supplies vertical, saw revenue rise 93.4 per cent Y-o-Y in Q4FY25. The vertical's revenue stood at ₹1,840 crore in Q4FY25, up from ₹951 crore in the same quarter of the previous financial year.
Mint
01-05-2025
- Business
- Mint
Zomato shuts 15-minute food delivery service ‘Quick' four months after launch, confirms CEO Deepinder Goyal in Q4 report
Zomato announced its January-March quarter results for fiscal 2024-25 (Q4FY25) on Thursday, May 1, and informed it's shareholders that the leading food delivery giant will shut down it's 15-minute food delivery service 'Quick' and Zomato Everyday. Zomato 'Quick' was launched just four months ago. Responding to a question on Zomato 'Quick' and Zomato Everyday services, Zomato chief executive officer (CEO) Deepinder Goyal said in a letter to shareholders today, '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 and kitchen infrastructure is not set up for delivering orders in 10 minutes which leads to inconsistent customer experience.' Zomato 'Quick', 'Everyday' shuts down As a result, Zomato did not see any incrementality in demand while it ran Quick as an experiment for a few months. With Everyday, the food delivery giant 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," confirmed Zomato CEO Deepinder Goyal. Zomato Everyday was a quick food delivery option that appeared on Zomato's explore page on the app, offering ready-to-eat, homely meals from select restaurants located within a two-kilometre radius. The option, however, is no longer visible. This was Zomato's second attempt to crack the quick food delivery market. Its earlier service– Zomato Instant, launched in 2022 – promised 10-minute deliveries in Bengaluru and Delhi-NCR but was shut down by January 2023. Eternal, which owns the Zomato and Blinkit brands, on Thursday reported a consolidated net profit of ₹ 39 crore for the fourth quarter ended March 31, 2025. The company, which rebranded itself as Eternal in March, had posted a net profit of ₹ 175 crore in the year-ago period. The company in a regulatory filing said that the results for the quarter and year ended March 31, 2025, along with the December-end quarter, are not comparable with other periods. The Deepinder Goyal-led firm's revenue from operations in the January-March quarter was at ₹ 5,833 crore. In the year-ago period it stood at ₹ 3,562 crore, the filing showed. However, during the quarter under review, Eternal's total expenses stood at ₹ 6,104 crore. Eternal witnessed a widening of losses in the quick commerce business Blinkit, the regulatory filing showed. The revenue reporting segments for the Group include India food ordering and delivery; Hyperpure supplies (B2B business); Blinkit (quick commerce); District (dining out and restaurant; and all other segments (residual). First Published: 1 May 2025, 04:29 PM IST
Time of India
01-05-2025
- Business
- Time of India
Zomato 'quietly ends' the food delivery service it started just 4 months back
Zomato Q4 Results: Eternal (formerly Zomato) saw its net profit fall by 78% year-on-year (YoY) to Rs 39 crore in the March 2025 quarter. Zomato has reportedly discreetly removed its 15-minute food delivery tab, Quick, from its main app just four months after its launch, signaling a potential shift in its ultra-fast delivery strategy, according to Money Control. The feature, also part of Zomato Everyday , was prominently promoted but is now unavailable in cities like Bengaluru, Gurugram, Hyderabad, and Mumbai. Zomato may rework and relaunch the feature later. Quick, accessible via Zomato's explore page, offered ready-to-eat meals from select restaurants within a two-kilometer radius but is no longer visible. Zomato reportedly did not respond to Money Control queries on the same. Incidentally, Zomato CFO Akshant Goyal previously suggested the feature's limited impact, stating, 'All these initiatives (10-minute delivery in India) are still at a very early stage and are not likely to move the needle,' during the Q3FY24 results announcement. Quick reportedly accounted for 8% of Zomato's order volume around March. This marks Zomato's second failed attempt at quick deliveries. Its 2022 venture, Zomato Instant , promised 10-minute deliveries in Bengaluru and Delhi-NCR but shut down by January 2023. It was succeeded by Zomato Everyday, which has also vanished from the app. Zomato has now pivoted to Bistro by Blinkit , a separate service leveraging Blinkit's dark stores to deliver snacks and small meals quickly. Swiggy countered with its Snacc app. However, Zomato's CEO Deepinder Goyal admitted to Money Control last October that scaling quick deliveries is challenging due to difficulties in securing restaurant partners. He noted, 'Zomato Instant was not the right product market fit. Zomato Everyday…has a slightly better model,' with plans to include simple items like samosas and puffs. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Your Finger Shape Says a Lot About Your Personality, Read Now Tips and Tricks Undo Amid rising competition from Zepto Café, Blinkit's Bistro, and others like Magicpin and BigBasket, Zomato seems to be redirecting its quick-delivery efforts to Bistro by Blinkit , separating fast snacks from its core restaurant delivery app to streamline operations. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
