Deepinder Goyal's Zomato ended its 15-minute delivery service just 4 months after its launch.
The service offers ready-to-eat dishes from selected restaurants within a radius of two kilometers.
Deepinder Goyal-led food delivery giant Zomato has quickly ended its 15-minute food delivery tab. The service has been removed from its main application. It was launched only four months ago. This feature is also featured as part of Zomato's daily offering, and is heavily advertised on the main app's landing page. Now it is not available in several cities including Bangalore, Gurugram, Hyderabad, Mumbai, etc.
The service offers ready-to-eat dishes from selected restaurants within a radius of two kilometers. However, this option is no longer visible. “We are actually closing both initiatives (fast every day) because we don't see the profitable path of these plans without damaging the customer experience,” Zomato Group Deepinder Goyal said in a letter to shareholders.
“The current restaurant density and kitchen infrastructure have not delivered orders in 10 minutes, resulting in inconsistent customer experience. As a result, we did not see any increments of demand, and we quickly conducted experiments as experiments for several months.”
Zomato (now Eternal Ltd) Q4 results
Eternal Ltd reported that consolidated net profit fell sharply by 77% in the fourth quarter (Q4, Q25). The company made a profit of Rs 1.75 crore a year ago. Eternal Ltd operates food delivery platform Zomato and fast business company Blinkit. Each quarter, Zomato, a professional food delivery specialist, suffered a net profit of 33% – Rs 5.9 crore (Q3) between October and December. Total expenses increased from Rs 36.36 crore to Rs 67 crore, an increase of 67% (year-round). On the basis of QOQ, spending increased by more than 10%.
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