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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
