Foodtech Leader Zomato Ends 15-Minute Delivery Pilot
Foodtech leader Zomato has discontinued its 15-minute food delivery trial known as Quick, just four months after it commenced operations. This decision was confirmed during the company’s Q4 earnings report, where founder and CEO Deepinder Goyal highlighted operational difficulties, mentioning that the existing restaurant density and kitchen infrastructure are not capable of supporting 10-minute deliveries, which resulted in an inconsistent customer experience.
This closure occurs while competitor Swiggy enhances its focus on ultra-fast delivery. Swiggy’s 10-minute food delivery service, Bolt, which was introduced in October 2024, has grown to cover over 500 cities, including both metropolitan areas and tier II and III markets. Swiggy asserts that Bolt now accounts for more than 10% of its overall food delivery orders, backed by a network of over 45,000 restaurant partners.
Swiggy’s Rapid Expansion in Ultra-Fast Delivery
The Swiggy Instamart service initially did not prioritise 10-minute deliveries but later improved its turnaround times to compete with companies like Blinkit and Zepto. An analyst focusing on the online ordering market, who wished to remain anonymous, stated that this time, Swiggy is keen to avoid delays in the ultra-fast food delivery sector and is determined to maintain its edge by expanding to over 500 cities.
Zomato’s Strategic Refocus
Zomato’s founder, Goyal, pointed out that Quick was merely a short-term trial and did not create any additional demand. On the other hand, Rohit Kapoor, CEO of Swiggy Food Marketplace, expressed that its growth to over 500 cities marks the beginning of a wider rollout.
Zomato is evidently redirecting its efforts towards fortifying its core services and improving unit economics, particularly after its Blinkit division experienced a rise in EBITDA loss to Rs 178 crore in Q4 FY25, compared to Rs 103 crore in Q4 FY24. Nonetheless, the subsidiary recorded a significant revenue increase of 122% in the last quarter of FY25. Overall, Zomato’s group profit fell by 78%, while operational revenue soared by 64% during the same timeframe.
Continuing In Fast Food Delivery Through Bistro
Despite the discontinuation of Quick, Zomato plans to remain in the fast food delivery market via Blinkit’s Bistro—an independent platform aimed at delivering snacks, puffs, and baked goods. The aforementioned analyst remarked that Zomato would not have terminated Quick if Bistro were not in place, affirming there is a robust and growing demand for 10–15-minute food deliveries in metro and larger urban areas. Zomato is acknowledging this demand and retains its involvement through Bistro.
The closure of Quick appears to have been inevitable, considering both the overlap with Blinkit and the increasing pressure on Zomato’s bottom line. It seems overly simplistic to attribute this to challenges in restaurant density or food infrastructure, areas Zomato is expected to understand well.
At times, Zomato’s decisions suggest the need for the company to consistently innovate to engage its employees. However, this approach does not yield the desired results. It is crucial to establish a separate sandbox for experiments, yet to satisfy investors looking for real operational profits, Zomato must refine more conventional, repetitive processes. Delaying this could diminish the company’s impressive valuations sooner rather than later.
Eternal Limited’s Shift to Inventory Control in Quick Commerce
Eternal Limited’s Shift to Inventory Control in Quick Commerce
Eternal Limited, the company that was previously known as Zomato, is preparing to implement a significant strategic change in its quick commerce division, Blinkit. This change involves directly owning inventory, a transition made possible by the company’s recent designation as an Indian-owned and controlled company (IOCC), as outlined in a letter to shareholders.
This strategic shift aims to bolster operations and enhance profit margins as Eternal faces escalating competition from both established enterprises and new players in the quick commerce sector.
Financial Implications of the Inventory Model
Eternal anticipates that the implementation of a full inventory model will necessitate less than Rs 1,000 crore in working capital. This figure constitutes merely about 5% of Blinkit’s projected Net Order Value (NOV) of Rs 22,000 crore for FY25.
When queried about how a completely inventory-based model could be executed with Rs 1,000 crore, Eternal’s CFO Akshant Goyal clarified that in the fast-paced world of quick commerce, inventory circulation occurs swiftly. Consequently, the company expects working capital expenditures, in relation to the overall business scale, to remain relatively minimal.
Expansion and Challenges Faced by Blinkit
The initiative to manage inventory for Blinkit coincides with the firm’s aggressive growth in Q4 FY25, during which the company added 294 new stores and expanded warehouse space by over 1 million square feet, reaching a total of 1,301 stores. However, this rapid expansion resulted in increased EBITDA losses for Blinkit, rising from Rs 103 crore in Q3 to Rs 178 crore in Q4 of the previous fiscal year (FY25).
Despite the rise in short-term losses, Eternal maintains an optimistic outlook regarding the long-term profitability of the quick commerce sector. The company is not currently planning to introduce private labels but has suggested that better inventory management could potentially elevate EBITDA margins beyond the existing target of 5-6% of NOV.
Foodtech and quick commerce platform Eternal has disclosed its financial performance for the fourth quarter of FY25. Despite notable revenue growth owing to consistent expansion efforts, the Gurugram-based company experienced a significant drop of 78% in profit for the quarter that ended in March 2025.
Zomato’s Revenue Growth in Q4 FY25
Zomato’s operational revenue surged by 64%, reaching Rs 5,833 crore in Q4 FY25, compared to Rs 3,562 crore in Q4 FY24, according to the consolidated financial results obtained from the National Stock Exchange (NSE).
Annual Financial Overview
Consequently, Zomato’s total revenue for the fiscal year concluding in March 2025 increased by 67%, climbing to Rs 20,243 crore from Rs 12,114 crore in FY24.
This is an evolving story. Please return for further updates.
Zomato Updates Its Delivery Strategy with Food Delivery Services
Zomato Updates Its Delivery Strategy with Food Delivery Services
Food tech leader Zomato has recently removed its 15-minute food delivery option, Quick, from its primary application just four months after it was introduced, suggesting a strategic adjustment in its strategy for ultra-fast meal deliveries. Moneycontrol was the first to break this news.
The Quick feature, also part of Zomato Everyday, was prominently displayed on the main app’s landing page but is now inaccessible in various cities including Bengaluru, Gurugram, Hyderabad, and Mumbai. It remains a possibility that the company might relaunch a different version of the feature in the future.
Details on Zomato Quick Service
The service initially provided ready-to-eat meals from selected restaurants within a two-kilometre distance. Nevertheless, this option has now been removed from the app. In March, Zomato Quick contributed to nearly 8% of the app’s total order volume.
Previous Attempts at Quick Delivery
This marked Zomato’s second endeavour in the quick food delivery market within its main application. The previous initiative, Zomato Instant, launched in 2022, promised deliveries in 10 minutes across Bengaluru and Delhi-NCR but was discontinued by January 2023. This service was later succeeded by Zomato Everyday, which offers home-style meals with comparable delivery timelines.
New Initiatives: Bistro by Blinkit
Despite the absence of a quick food delivery option on its main platform, Zomato has unveiled Bistro by Blinkit, a distinct service that provides fast-moving ready-to-eat dishes made in Blinkit’s network of dark stores. This new application focuses on snacks, light meals, and bakery goods that can be dispatched quickly, combining Blinkit’s rapid commerce capabilities with Zomato’s expertise in food delivery.
Strategic Shift in Delivery Services
Zomato seems to be realigning its quick-food offerings away from its core application, concentrating instead on leveraging Blinkit’s dark store network. The firm may be aiming to differentiate rapid snacking options from comprehensive restaurant orders.
This shift occurs amidst a rapidly growing 15-minute food delivery sector featuring new competitors like Zepto, which initiated the category with Zepto Café in 2022 and now processes over 100,000 daily orders via its standalone app, leading to an annualised Gross Merchandise Value (GMV) of $100 million.
Eternal Limited Denies False Reports on CEO Rakesh Ranjan
Eternal Limited, previously known as Zomato, has dismissed the rumors regarding the resignation of CEO Rakesh Ranjan, stating that these reports are untrue. The company firmly asserted this position in a statement released on Thursday.
In the official announcement, Eternal Limited confirmed that Mr. Ranjan has not resigned and continues to be a vital member of the leadership team. However, there was no clear information provided regarding his ongoing role as the CEO of the food delivery sector.
While the statement did not elaborate on any potential restructuring involving Mr. Ranjan or other senior leaders, the company highlighted that such internal reshuffles are common practices aimed at improving operational efficiency and do not signify the exit of crucial personnel.
According to the statement from Eternal, it seems the company might be gearing up for a significant leadership transformation at the top level. “This is part of our continuous efforts to enhance our effectiveness within the organization,” the company remarked, indicating that these internal shifts are not deemed significant and usually do not require public announcement unless mandated by regulators.
Even though the company recognized the media coverage, it clarified that the disclosures made today were voluntary and not considered material information. Eternal Limited reaffirmed its dedication to open communication, containing any major updates that would be shared with the stock markets as per relevant regulations.
Recently, Eternal revealed the resignation of Rinshul Chandra, the Chief Operating Officer of its Food Ordering and Delivery segment. Earlier this month, the Gurugram-based enterprise also released approximately 600 customer support associates shortly after hiring them.
Eternal has recently undergone a rebranding from Zomato, and now includes four principal businesses: Zomato, Blinkit, District, and Hyperpure. Currently, shares of Eternal are valued at Rs 240 each (as of 13:24 PM), with an overall market capitalisation of Rs 2,31,606 crore (roughly $27 billion).
India’s Food Delivery Sector: The Rise of Private Label Brands
India’s Food Delivery Sector: The Rise of Private Label Brands
India’s food delivery sector is seeing significant changes as major players like Swiggy and Zomato venture into private label food brands. Initially, these platforms served as neutral links between consumers and restaurants, but their increasing interest in creating and managing their own brands raises alarms concerning data security, equitable competition, and market fairness.
Expansion of Private Labels: Snacc and Bistro
Swiggy has introduced Snacc, while Zomato, through its Blinkit service, is actively promoting Bistro. Both Bistro and Snacc are in direct competition with the restaurants featured on Zomato and Swiggy’s applications. Unlike traditional food aggregators, which function merely as intermediaries, these platforms are now occupying dual roles—serving as both marketplace providers and rivals to restaurant operators.
Concerns Over Data Privacy and Market Fairness
The primary issue relates to data access and privacy. With deep insights into consumer choices, ordering habits, peak demand periods, and popular cuisines, these companies hold a distinctive edge over independent restaurants. This access to critical market data brings forth a vital question—could this information be shaping their private-label tactics, thus granting them an unfair competitive edge?
Perspective of Industry Experts
Thomas Fenn, Joint Secretary of the National Restaurant Association, has noted that the emergence of rapid food delivery services like Bistro and Snacc creates an unbalanced environment for restaurants. He remarked that these platforms procure food from external kitchens, market under private labels, and utilize marketplace insights, thus obtaining an unjust advantage. Fenn indicated, “Nothing hinders them from diverting customers to their own offerings at reduced rates, without incurring high commission fees.”
Fenn stressed the necessity for stringent regulations, stating that Zomato and Swiggy utilize their scale to strike advantageous pricing deals and subsidize expenses with investor funds, hampering the ability of local vendors and restaurants to compete effectively. He added, “Price parity regulations further block competition. Stronger regulations, akin to Press Note 3 for retail, are essential to safeguard local enterprises.”
Regulatory Insights on Data Sharing
In response to fears about data sharing between Zomato and Bistro, Blinkit CEO Albinder Dhindsa stated on X that Zomato will “never launch private brands on the Zomato app to compete with its restaurant partners.” He reaffirmed that Bistro operates independently with its own app, asserting that no Zomato restaurant data is utilized, and that the Zomato app would not facilitate its promotion. However, an investigation by Startup Superb revealed a Bistro promotional banner on the Blinkit app, although it did not appear on Zomato. Industry specialists note that all three—Zomato, Blinkit, and Bistro—are under the same parent company, complicating the verification of any internal data-sharing activities. A similar trend was noted on Swiggy, where promotion of the Snacc app was visible within the Swiggy app.
Industry Reactions and Concerns
Restaurant coach and mentor Randheer highlighted on Instagram that these platforms that initially functioned as intermediaries are now competing with the very establishments they support. With services like Blinkit’s Bistro, Swiggy’s Snacc, and Zepto Café, these aggregators are not merely delivering food from affiliate restaurants; they are also creating and delivering their own products, effectively seizing a more substantial segment of the value chain. This evolution prompts a critical inquiry for restaurant owners—should they be alarmed? Without a doubt.”
Despite reassurances from the founders that their private label initiatives do not compete with existing restaurant listings on the food delivery apps and are not utilized for their marketing strategies, worries remain. The paramount risk lies in the possible misuse of proprietary data and consumer insights from the core platforms, including patterns in customer behaviour, purchasing trends, and market interests, which could grant these private labels a strategic upper hand over independent restaurant partners.
Regulatory Actions and Expectations
The ongoing uncertainties pose significant questions for restaurant owners: Could their business insights potentially identify trending food items, which might then be mirrored by aggressively-funded private-label brands? While concrete evidence of illicit data-sharing has yet to surface, the inherent advantage these platforms enjoy continues to be a major concern.
As of November 2024, a report from Reuters indicated that the Competition Commission of India (CCI) launched an investigation into Zomato and SoftBank-backed Swiggy for breaching competition regulations by favouring specific restaurants. The report, citing confidential CCI documents, revealed that Zomato entered into exclusive agreements for lower commission rates, while Swiggy guaranteed growth to restaurants registering exclusively on its platform.
Alarm from the National Restaurant Association of India
Representing over 500,000 restaurants, the National Restaurant Association of India (NRAI) has formally approached the CCI to address such practices. Startup Superb reviewed the NRAI’s filing, which asserts that Zomato and Swiggy contravene Section 3(1) of the Competition Act. This matter is currently under scrutiny.
Fenn mentioned that the CCI has recognized several of these concerns in its report, but noted that more robust and prompt regulatory measures are crucial.
Lessons from E-commerce Regulation
This situation bears similarities to the regulatory responses faced by e-commerce titans Amazon and Flipkart, who encountered similar examination prior to the Department for Promotion of Industry and Internal Trade (DPIIT) introducing Press Note 3 regulations in 2016. These guidelines were established to prevent foreign-funded e-commerce platforms from maintaining inventory, aimed at prohibiting marketplace operators from favouring their own sellers and gaining an unfair edge through data access.
Both Amazon and Flipkart faced accusations of indirectly guiding preferred sellers, using deep commercial insights to promote their own brands, while offering them preferential treatment regarding pricing and visibility. Currently, food aggregators appear to be treading a similar path, provoking the need for a parallel regulatory structure to safeguard the restaurant sector.
The large-scale shift to online spending as seen with Amazon and Flipkart, is mirrored in the rapid delivery impact on local grocery stores by services such as Blinkit, Swiggy Instamart, and Zepto. Zomato and Swiggy venturing into private labels now poses a threat to independent restaurants. By utilizing customer data and marketplace analytics, these platforms can elevate their own products above those of partnering restaurants, echoing the practices of e-commerce giants who favoured their internal offerings over third-party sellers. This transition resembles past disruptions in retail and grocery sectors, placing food delivery platforms in positions as both gatekeepers and competitors, potentially thwarting smaller restaurants like independent sellers in the past.
Trust and Fairness in Food Delivery
The restaurant industry currently stands at a pivotal juncture. Will regulatory entities such as the Competition Commission of India (CCI) implement new frameworks to guarantee fair competition among food aggregators? Or will restaurants encounter the same hurdles that independent sellers in e-commerce struggled with prior to government action?
Presently, restaurant owners find themselves in a precarious situation reliant on aggregators’ assurances of fair play—without any established regulations to avert possible misuse of their data.
Global Perspective on Private Label Expansion
Leading food delivery services in both China and the United States have also expanded into private label offerings alongside their marketplace operations. In China, major players such as Meituan and Ele.me dominate the sector, while DoorDash and Uber Eats have adopted a similar strategy in the U.S. Nevertheless, China’s regulatory environment is more stringent, with the State Administration for Market Regulation (SAMR) penalizing Meituan $534 million in 2021 for anti-competitive actions. Conversely, the U.S. lacks specific regulations governing private label initiatives, primarily focusing on labour rights, data confidentiality, and antitrust issues.
Fenn argues that the sector requires regulations similar to Press Note 3, which restricted foreign-funded e-commerce entities like Amazon and Flipkart from having inventory-led operations. “Just as Press Note 3 shielded retail platforms, a comparable policy must address food delivery entities, regardless of their ownership status. Without regulation, local businesses risk diminishing and becoming overly reliant on two major players,” he stated.
Startup Superb reached out to Swiggy and Zomato with a comprehensive questionnaire regarding potential data-sharing issues concerning restaurant insights. Zomato chose not to respond, while Swiggy has yet to provide feedback after three weeks.
The Path Forward for Food Delivery Platforms
Even as the platforms claim to maintain operational boundaries and offer a limited menu for the time being, this does not guarantee future compliance. Evaluating their expectations with restaurant owners, one can see the logic is questionable by most standards.
The government should enact definitive regulations to ensure market neutrality in the food delivery sector, akin to scrutiny faced by e-commerce platforms for favouring their in-house brands over independent sellers. Regulations must incorporate mandates for data transparency, requiring platforms to disclose the utilization of consumer insights while enforcing comprehensive separation of marketplace and private label operations to avert potential conflicts of interest.
With the CCI already investigating Swiggy and Zomato for anti-competitive conduct, the discourse on data protection and market neutrality may soon gain regulatory attention.
Eternal Limited (Zomato) Announces Resignation of Chief Operating Officer
Eternal Limited, formerly known as Zomato, has informed the public about the resignation of Rinshul Chandra, who holds the position of Chief Operating Officer in the Food Ordering and Delivery division. Chandra, a significant figure in the firm’s senior management team, submitted his resignation on April 5 and will officially leave the role on April 7.
As detailed in the company’s announcement to stock exchanges, Chandra is departing to explore new opportunities and interests that align with his developing personal and professional aspirations.
Chandra joined Zomato (currently Eternal) back in 2018 as the Assistant Vice President of Product. He gradually advanced within the organisation, taking on roles such as Vice President, Head of Business, and ultimately, the Chief Operating Officer for the food delivery sector.
At this time, Eternal Limited has not disclosed who will succeed Chandra.
This news follows recent mass layoffs at Zomato, where reports indicate that approximately 600 customer support associates were dismissed within a year of their hiring.
In the past year, Zomato has experienced several notable departures. Hemal Jain, who was the Global Head of Finance and CFO of Hyperpure, has also resigned. Furthermore, Akriti Chopra, the company’s co-founder and Chief People Officer, has exited the firm. In October of the previous year, Gunjan Soni stepped down from her role as an Independent Director.
Recently, Zomato underwent a rebranding to Eternal, which now encompasses four principal businesses: Zomato, Blinkit, District, and Hyperpure.
Zomato Reduces Workforce of Customer Support Associates
Zomato has recently laid off approximately 600 customer support associates just a year after bringing them on board. This decision arrives amid the food and grocery delivery giant facing a deceleration in growth within its main food delivery sector and increasing deficits in its quick commerce division, Blinkit. Moneycontrol was the first to unveil this news.
Last year, Zomato onboarded around 1,500 individuals through its Zomato Associate Accelerator Program (ZAAP) for customer support positions, which promised the potential for promotions into various roles across sales, operations, program management, support, supply chain, and category teams within a year. Unfortunately, a significant number of these contractual employees found that their contracts were not renewed at the conclusion of their terms.
The report specified that the workers impacted by these layoffs were provided with one month’s salary as severance and were dismissed without any notice period, with reasons cited including poor performance and issues with punctuality.
Startup Superb has reached out to Zomato for their official comment on this matter.
Zomato Invests in Blinkit for Quick Commerce Expansion
Food tech leader Zomato has put in a significant investment of Rs 1,500 crore (approximately $178 million) into its quick commerce subsidiary, Blinkit. This investment comes just a month following the completion of a Rs 500 crore funding round.
The Blinkit board approved a special resolution allowing the issuance of 7,612 equity shares at an issue price of Rs 19,70,181 each, aimed at raising the mentioned Rs 1,500 crore (or $178 million), as detailed in a regulatory filing obtained from the Registrar of Companies (RoC).
This fresh influx of capital into Blinkit follows closely on the heels of Zomato’s successful raising of Rs 8,500 crore through a Qualified Institutions Placement (QIP) three months earlier. The primary aim of this capital acquisition was to bolster Zomato’s financial footing and support its business expansion along with strategic initiatives, especially in the quick commerce sector.
In the third quarter of the current financial year, Zomato recorded an impressive 64.4% year-on-year increase in operating revenue, climbing to Rs 5,405 crore from Rs 3,288 crore in Q3 FY24. However, during this same timeframe, profits for the company based in Gurugram saw a decline of 57.2%, dropping to Rs 59 crore.
In Q3 FY25, Blinkit reported a stunning 117% growth in revenue from operations, reaching Rs 1,399 crore compared to Rs 644 crore previously.
Recently, Zomato’s main competitor, Swiggy, injected Rs 1,000 crore ($117 million) into its supply chain division, Scootsy Logistics, to enhance its quick commerce venture, Instamart.
A recent report from Citi noted that Swiggy Instamart is currently lagging behind in the quick commerce competition. Zomato’s Blinkit and Zepto are gaining greater market shares in India’s fast-paced delivery domain, with Swiggy holding 23% of the market and Blinkit commanding 41%.
Nifty 50 Index Reshuffle: Zomato and Jio Financial Set to Join
In a significant change within the Nifty 50 index, Zomato and Jio Financial Services are preparing to replace Britannia Industries and Bharat Petroleum Corporation Limited (BPCL). This transition is scheduled to take place on March 31, 2025.
The National Stock Exchange (NSE) undertakes such periodic rebalancing, which is based on the average free-float market capitalization of companies over a six-month duration, specifically from August 1 to January 31.
This development marks a pivotal moment for emerging tech companies in India. According to a report by JM Financial, the inclusion of Zomato is anticipated to generate inflows of about $620 million, impacting nearly 226.6 million shares and affecting trading volumes for approximately 3.8 days.
In December 2024, the company led by Deepinder Goyal achieved a historic milestone by becoming the first new-age tech firm to be included in the Bombay Stock Exchange (BSE) Sensex 30, taking the place of JSW Steel Limited in India’s benchmark index of the top 30 firms.
Nifty Next 50 Index Changes
The Nifty Next 50 index is also undergoing significant changes with the addition of seven new stocks: Bajaj Housing, BPCL, Britannia, CG Power, Hyundai Motor India, Indian Hotels, and Zomato’s competitor Swiggy. These new entries will replace Adani Total Gas, BHEL, IRCTC, Jio Financial, NHPC, Union Bank, and Zomato.
The Nifty Next 50 Index acts as a standard reference, representing the leading 50 companies ranked between 51 and 100 according to market capitalization on the National Stock Exchange (NSE).
