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Zomato Pulls the Plug on ‘Quick’ and ‘Everyday’ Services Amid Profitability Concerns

Zomato Pulls the Plug on ‘Quick’ and ‘Everyday’ Services Amid Profitability Concerns

Zomato has officially discontinued its quick food delivery vertical, Quick, just three months after its launch.

“We did not see any incrementality in demand while we ran Quick as an experiment for a few months,” said Eternal CEO Deepinder Goyal while announcing the decision.

The service, which offered 15-minute deliveries from nearby restaurants, faced hurdles in execution.

Goyal cited inadequate restaurant density and kitchen infrastructure as primary barriers to delivering consistent customer experiences in such a short time frame.

‘Everyday’ Also Fades Out

Alongside Quick, Zomato has also pulled the plug on Zomato Everyday, a homely-meal offering.

Goyal explained that the service only made sense in office-heavy metro locations, making it unviable for wider expansion. As a result, the company did not see sufficient returns to justify its continuation.

Zomato Everyday evolved from Zomato Instant, which had promised 10-minute deliveries in cities like Bengaluru and Delhi-NCR back in 2022 but was wound down by January 2023.

Competitive Landscape and Missed Momentum

Zomato’s entry into quick food delivery trailed competitors like Swiggy and Zepto. Launched in January this year, Quick offered ready-to-eat meals from restaurants within a 1.5 to 2 km radius.

However, while competitors have made headway, Zomato’s attempt faltered.

Zepto, for instance, reported success with Zepto Café, which surpassed 1 lakh daily orders and nearly achieved a $100 million annualised GMV with close to 50% gross margin.

Swiggy’s Bolt contributed 9% to its Q3 FY25 food delivery revenue, up from 5% in November 2024.

Bistro Continues Under Blinkit

While Zomato has ended Quick, Bistro—a quick meal delivery service under Blinkit—continues operations in Gurugram. However, the company has not disclosed Bistro’s performance in its Q4 shareholder update.

A Disappointing Q4

Eternal’s Q4 results showed a 78% drop in profit, highlighting a continuing slowdown in Zomato’s food delivery business.

Although adjusted EBITDA rose 56% YoY to INR 428 Cr, revenue grew only 17% to INR 2,409 Cr. Average monthly transacting users increased slightly to 20.9 million, but Net Order Value growth remained sluggish at 14% YoY, missing the 20% guidance.

Zomato attributed the slowdown to a shortage of delivery partners, demand stagnation, and cannibalisation from its own quick commerce vertical.

Leadership Shake-up

Zomato confirmed that food delivery CEO Rakesh Ranjan has stepped down after two years. Deepinder Goyal has taken over temporarily while the company finalises its leadership structure.

The company also removed the Quick delivery tab from its main app, only months after heavily promoting it.

The feature is now unavailable in key cities like Bengaluru, Gurugram, Hyderabad, and Mumbai, signaling a possible strategic reset.

The Experiment That Didn’t Work

Zomato Quick, which appeared as a dedicated section on the app, accounted for nearly 8% of total order volume by March.

This was the company’s second attempt at quick food delivery, following the failure of Zomato Instant. Everyday, which replaced Instant with similar delivery timelines, has now also been removed.

Goyal addressed shareholders directly, stating, “We are actually shutting down both these initiatives (Quick and Everyday) as we are not seeing the path to profitability in these without compromising on customer experience.”

He reiterated the infrastructure limitations that hindered consistent delivery performance.

CFO Weighs In on Limited Impact

Zomato’s CFO Akshant Goyal, during the Q3FY24 earnings call, had said, “I don’t think any of this has had a material impact on Zomato restaurant aggregation food delivery business so far. All these initiatives… are still at a very early stage and are not likely to move the needle at all.”

Shift Toward Blinkit’s Model

Though Zomato no longer supports quick food delivery on its main app, it has launched Bistro by Blinkit, a service leveraging Blinkit’s dark store network.

This new model focuses on snacks, small meals, and bakery items that can be dispatched rapidly.

Swiggy has also entered the fast meal delivery market with a separate app called Snacc, launched shortly after Blinkit’s Bistro.

Industry Challenges and Future Focus

Zomato has admitted that scaling quick food delivery remains a significant challenge. In an earlier interview, Goyal stated that Zomato Instant lacked the right product-market fit, although Zomato Everyday showed slight improvement.

He had mentioned the addition of simple items like samosas and puffs to improve 10-minute delivery models.

The 15-minute delivery space is becoming increasingly competitive, with Zepto, Blinkit, Swiggy, Magicpin, BigBasket, Ola, and others all entering the fray.

With Bistro now operating as a standalone service, Zomato seems to be redirecting its focus toward a more targeted strategy, separating rapid snack delivery from full-scale restaurant orders.

While Quick may be gone from the main app, its spirit may live on through Blinkit’s infrastructure.

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