Eternal shuts down Zomato Quick, Everyday after tepid demand

Zomato parent Eternal has closed its 15-minute food delivery service Quick and homely meals segment Everyday as both services failed to muster enough demand, CEO Deepinder Goyal said in a letter to shareholders while announcing the financial results for the January-March quarter on Thursday.

The decision to shut these two services was taken as the company was "not seeing the path to profitability in these without compromising on customer experience", Goyal said.

The current restaurant density and kitchen infrastructure are not conducive to 10-minute food deliveries, which leads to inconsistent customer experience, the Eternal CEO said. "As a result, we did not see any incrementality in demand while we ran Quick as an experiment for a few months."


"With Everyday, we realised that the need for homely-meals is a limited use case largely for office locations in metros. We did not see enough ROI (return on investment) by keeping it running at a small scale."

Zomato had started Quick four months ago in select cities amid the rising trend of quick food deliveries with Swiggy's Snacc, Blinkit Bistro and Zepto Cafe. The service was accessible through the Zomato app, where orders were to be fulfilled by restaurants in a two-kilometre radius.

Eternal, formerly Zomato, reported a 78% fall in net profit in annual terms to Rs 39 crore in the March quarter, even as revenue from operations increased 64% on year to Rs 5,833 crore. Surge in expenses hit profitability as they jumped 68% year-on-year to Rs 6,104 crore.