Zomato Slashes Its 15-Minute Food Delivery Services: Zomato Quick and Zomato Everyday
Zomato Discontinues 15-Minute Delivery Service 'Quick' and 'Everyday' Due to Low Consumer Demand
Eternal (formerly Zomato) dropped a bombshell when it announced it's axing its lightning-fast food delivery services - Zomato Quick and Zomato Everyday. Here's why:
A Tale of Two ServicesIn a recent earnings report, Eternal's bigwigs spilled the beans, informing shareholders about the closure. Zomato CEO Deepinder Goyal explained that the company's grappling with profitability in these initiatives, making them a good candidate for the chopping block [1][2].
Fast Food, Slow ProfitsIt appears that serving up meals in a jiffy doesn't come cheap. Maintaining the services without compromising customer experience seems an unattainable dream due to the current restaurant density and kitchen infrastructure issues [1][2]. This logistical nightmare results in erratic customer experiences.
Niche Market, Limited AppealZomato Everyday turned out to be a burger, err, disappointment. The service catered to homely meals, a niche demand largely confined to office areas in big cities. Though popular in some circles, it failed to generate enough coin to run at a larger scale [1][2].
How Does This Affect the Bottom Line?Despite the closure of Zomato Quick and Zomato Everyday, the company managed to log a profit of Rs 39 crore in Q4, albeit a 77.71% dip compared to the previous financial year [3]. Revenue, on the other hand, surged by 63.76% to Rs 5,833 crore [3].
So, though Eternal is dialing back on these services, it's still chugging along, ready to tackle the ever-evolving food delivery landscape!
Sources:1. Eternal exits 15-minute food delivery business Zomato Quick, to shut down Zomato Everyday2. Eternal Q4 earnings: Profit plunges 77%, yet revenue surges 63%; metal sector gives solid results3. Eternal Q4 Profit Plunges 77% as Revenue Jumps 63.7%
- Krishna, a financial analyst, suggested that Eternal's decision to discontinue Zomato Quick and Zomato Everyday could have been influenced by the financial challenges in maintaining these services, as stated in their recent earnings report.
- Despite the closure of Zomato Quick and Everyday, Eternal still manages to generate a profit, as shown by their Q4 earnings report.
- The technology behind DEFI, a new financial system, might revolutionize the way businesses like Eternal approach finance, offering potential solutions to the logistical nightmares often encountered in food delivery services.
- Zomato Everyday, which catered to homely meals, faced limited appeal and failed to generate enough profit to scale up, as revealed in the same earnings report.
- The profitability of Eternal's business relies on a careful balance between ensuring quick meal delivery and maintaining a positive customer experience, a challenge that is evident in the closure of Zomato Quick and Zomato Everyday.
