Zomato has decided to wind down its fast-food delivery service Zomato Quick and homely-meal offering Everyday, citing low demand and limited profitability. The announcement was made by in a letter to shareholders while unveiling the company’s latest quarterly results.
Earlier, the company had also shut its previous 10-minute food delivery initiative, Zomato Instant, due to tepid response.
Founder and CEO Deepinder Goyal said the decision came after months of experimentation with both services and a lack of positive outcomes. “We are actually shutting down both these initiatives as we are not seeing the path to profitability in these without compromising on customer experience,” he stated.
Zomato Quick, introduced just four months ago, was the company’s attempt to ride the wave of 10-15 minute food deliveries. The service operated in select cities and was prominently placed on the Zomato app. However, it failed to generate sustained demand. The service primarily targeted customers within a two-kilometre radius of participating restaurants.
According to Goyal, inadequate restaurant density and lack of suitable kitchen infrastructure made it difficult to ensure a consistent and high-quality customer experience. “As a result, we did not see any incrementality in demand while we ran Quick as an experiment,” he said.
Everyday, on the other hand, launched in 2023 in Gurugram, aimed to serve students and office-goers looking for homely meals. Goyal acknowledged that while the offering had niche appeal, particularly in metro office hubs, it lacked the scale necessary to justify continued investment. “We did not see enough return on investments by keeping it running at a small scale,” he said.
Both services also attracted criticism from restaurant partners and industry bodies over alleged misuse of customer data.
Meanwhile, Blinkit will continue operations. Its new offering, Bistro, delivers meals from centralised kitchens, similar to Zepto Cafe. Blinkit CEO Albinder Dhindsa emphasised the service operates independently, with no data sharing with Zomato. “This is a standalone team with a standalone app,” he said.