Eternal (formerly Zomato) on Thursday released its fiscal fourth quarter earnings report, wherein it informed its shareholders that the company is shutting down its 15-minute food delivery service Zomato Quick and Zomato Everyday. ‘Quick’ was launched just four months ago.
In the letter to shareholders, Zomato CEO Deepinder Goyal said that the company is not seeing the path to profitability in the two initiatives and has therefore decided to shut them down.
Asked about the company’s 15-minute food delivery service, Deepinder Goyal said, “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.”
As a result, he added, the company did not see any incrementality in demand while running Quick as an experiment for a few months. With Everyday, Zomato realized that 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 said.
In terms of quarter results, Eternal posted Q4 profit at Rs 39 crore, posting a fall of 77.71 per cent in comparison to Rs 175 crore reported during the corresponding quarter of FY24. However, the company posted revenue from operations at Rs 5,833 crore, up 63.76 per cent as against Rs 3,562 crore reported during the fourth quarter of previous financial year.