Eternal, the company formerly known as Zomato, recently unveiled its financial performance for the fourth quarter, revealing significant changes to its service offerings. In a surprising move, the company announced the discontinuation of its 15-minute food delivery service, Zomato Quick, and the meal delivery concept, Zomato Everyday. Notably, Zomato Quick debuted a mere four months ago.
CEO’s Insights on Service Shutdown
In a candid message to shareholders, Deepinder Goyal, CEO of Eternal, expressed concerns about the sustainability of these initiatives. He emphasized that the company could not identify a viable path to profitability without sacrificing customer satisfaction.
- Challenges in Delivery: Goyal pointed out that the current infrastructure and restaurant density do not support a 10-minute delivery model, resulting in an inconsistent experience for customers.
- Limited Demand: While experimenting with Quick, the company noticed a lack of increased demand. Similarly, Zomato Everyday catered primarily to office workers in metropolitan areas, which limited its appeal.
Financial Highlights
Eternal’s financial results for the fourth quarter showed a profit of Rs 39 crore, reflecting a significant decline of 77.71% compared to Rs 175 crore from the same quarter in the previous fiscal year. However, the company experienced a robust increase in revenue, with operational earnings soaring to Rs 5,833 crore, marking a rise of 63.76% from Rs 3,562 crore in the fourth quarter of the previous year.
- Key Figures:
- Q4 Profit: Rs 39 crore
- Previous Year Q4 Profit: Rs 175 crore
- Revenue: Rs 5,833 crore
- Revenue Last Year: Rs 3,562 crore
Conclusion
The decision to discontinue Zomato Quick and Zomato Everyday reflects Eternal’s strategic pivot as it aims for long-term sustainability. As the company navigates the complexities of the food delivery market, its focus remains on enhancing customer experience while maximizing profitability. For more insights on the evolving landscape of food delivery services, check out our related articles on market trends and business strategies.
