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Eternal Q4 Results: Deepinder Goyal Doesn't See Profitability Path in Zomato's 2 Initiatives

Zomato has officially shut down its 10-minute food delivery service, ‘Zomato Quick’, and homestyle meal platform, ‘Zomato Everyday’, citing lack of demand and no clear path to profitability

Zomato CEO Deepinder Goyal

Eternal, formerly known as Zomato, on Thursday announced that the food delivery giant is shutting down its two initiatives ---- 15-minute food delivery service ‘Zomato Quick’ and ‘Zomato Everyday’. In a letter to shareholders while releasing its q4 FY25 results, CEO Deepinder Goyal said the company does not see the path to profitability in these segments.

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“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,” said Goyal.

He stated that Zomato did not see any incrementality in deman while it ran Quick as an experiment for a few months. “Quick was an attempt to cut food delivery time from 30 to 10 minutes, but it proved extremely hard and didn’t improve demand or customer experience,” he said.

And through Everyday platform, the food delivery giant came to understand that the demand for home-style meals is a niche use case, primarily relevant to office locations in metro cities. “We did not see enough ROI by keeping it running at a small scale," Goyal added.

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Zomato Everyday which used to feature on the app’s Explore page, offered ready-to-eat, homestyle meals from curated restaurants within a two-kilometre radius. The feature has since been quietly discontinued.

Zomato's Q4 FY25 Results

Eternal has reported 78% year-on-year decline in consolidated net profit to Rs 39 crore in Q4 FY25. The food delivery giant’s net profit was Rs 175 crore in Q4 FY24. However, its revenue from operations increased 64% year-on-year to Rs 5,833 during the same quarter this financial year.

On the profitability front, Zomato's consolidated Adjusted EBITDA declined by 15% year-on-year to Rs 165 crore in Q4 FY25. The dip was primarily driven by increased investments aimed at expanding the company’s quick commerce store network.

However, this was partially cushioned by an improvement in the food delivery segment, where the Adjusted EBITDA margin as a percentage of Gross Order Value (NOV) rose to 5.2%, up from 3.8% in the same quarter last year.

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It's quick commerce arm, Blinkit added highest ever stores 294 net new stores in the fourth quarter. The 10-minute delivery platform is on the track to get 2,000 dark stores by December 2025.

It has witnessed robust growth over the past year, with revenue rising sharply to Rs 1,709 crore in March 2025, up from Rs 1,399 crore in December 2024 and Rs 769 crore in March 2024.

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