Friday, May 2, 2025

Zomato exits experimental food services to refocus on core growth channels

Zomato has discontinued its short-lived food delivery ventures, Zomato Quick and Everyday, citing weak consumer demand, profitability issues, and scalability limitations. The move is part of a broader strategy to streamline operations and reinforce its focus on core business areas and Blinkit’s expanding quick-commerce capabilities.

Zomato Quick, launched only four months ago, aimed to deliver food within 10–15 minutes by tapping nearby restaurant kitchens. However, the service struggled with low customer uptake and operational inefficiencies due to inadequate kitchen density and infrastructure. Everyday, a homely meal offering for office workers and students, launched in 2023 in Gurugram, also failed to scale despite some initial interest in urban hubs.

Both services were positioned as experimental but did not yield the expected return on investment. Restaurant partners had previously raised concerns over the handling of customer data associated with these offerings.

The company will now concentrate resources on Blinkit, its fast-growing quick-commerce platform. Blinkit recently introduced “Bistro,” a centralised kitchen-based meal delivery service, which is operated independently of Zomato’s main app and infrastructure.

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