Zomato shuts 15-minute food delivery service ‘Quick’ four months after launch, confirms CEO Deepinder Goyal in Q4 report

Zomato announced its January-March quarter results for fiscal 2024-25 (Q4FY25) on Thursday, May 1, and informed it's shareholders that the leading food delivery giant will shut down it's 15-minute food delivery service 'Quick' and Zomato Everyday. Zomato ‘Quick’ was launched just four months ago.

Responding to a question on Zomato 'Quick' and Zomato ‘Everyday’, chief executive officer (CEO) Deepinder Goyal said in a letter to shareholders, “We are shutting down both initiatives as we do not see the path to profitability in these without compromising on customer experience. The current restaurant density and kitchen infrastructure is not set up for delivering orders in 10 minutes which leads to inconsistent customer experience.”

Zomato ‘Quick’, ‘Everyday’ shuts down

Zomato, as a result, did not see any incrementality in demand while it ran Quick as an experiment for a few months. With Everyday, the food delivery giant realized that the need for homely-meals is a limited use case largely for oce locations in metros. 'We did not see enough ROI by keeping it running at a small scale," confirmed Zomato CEO Deepinder Goyal in the letter.

Zomato Everyday was a quick food delivery option that appeared on Zomato’s explore page on the app, offering ready-to-eat, homely meals from select restaurants located within a two-kilometre radius. The option is no longer visible.

This was Zomato’s second attempt to crack the quick food delivery market. Its earlier service– Zomato Instant, launched in 2022 – promised 10-minute deliveries in Bengaluru and Delhi-NCR but was shut down by January 2023.

Zomato Q4 Results

Eternal, which owns the Zomato and Blinkit brands, on Thursday reported a 77.7 per cent fall in its March quarter consolidated net profit at ₹39 crore versus ₹175 crore reported in the year ago period. The revenue from operations in Q4FY25 stood at ₹5,833 crore, which was up by 63.8 per cent over ₹3,562 crore in the corresponding quarter of the previous financial year.

On a sequential basis, the profit after tax was down by 34 per cent to ₹59 crore reported in Q3FY25. The topline was higher by eight per cent on a sequential basis versus ₹5,405 crore reported in the December quarter. The decline in profit was linked to greater investments in enhancing the quick commerce division, Blinkit, along with rising infrastructure expenses across various segments.

Eternal witnessed a widening of losses in the quick commerce business Blinkit, the regulatory filing showed. The revenue reporting segments for the Group include India food ordering and delivery; Hyperpure supplies (B2B business); Blinkit (quick commerce); District (dining out and restaurant; and all other segments (residual).