In a significant strategic pivot, food delivery major Zomato has announced the closure of its recently launched 15-minute food delivery service, ‘Zomato Quick’, along with its homely-meal initiative, ‘Zomato Everyday’. The decision comes just three months after Quick’s pilot rollout.
The move was disclosed in a letter to shareholders by Eternal, the parent company of Zomato. Eternal CEO and Zomato co-founder Deepinder Goyal stated that both initiatives failed to demonstrate a viable path to profitability without sacrificing customer experience — a trade-off the company is unwilling to make.
“The current restaurant density and kitchen infrastructure are not built to handle 10-minute deliveries reliably, resulting in an inconsistent customer experience,” said Goyal. “We did not see incremental demand during the pilot phase, which makes it unsustainable to scale.”
Written by
Team IFT
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