Zomato, the well-known food delivery giant, made an important announcement on May 1, 2025, regarding the company’s performance and the future of two of its services: Zomato ‘Quick’ and Zomato Everyday. As part of its financial results for the January-March quarter of fiscal year 2024-2025 (Q4 FY25), the company informed its stakeholders that it would be discontinuing these two offerings. This decision comes after a brief experiment with both services, with Zomato ‘Quick’ being introduced only four months ago. Despite the initial hype and hope around these services, the company admitted they were unable to make these services profitable without compromising customer experience.
The Rise and Fall of Zomato 'Quick' and Zomato Everyday
Zomato 'Quick' was introduced with the promise of 15-minute food deliveries, catering to customers who sought ultra-fast meal options. The idea behind it was to offer a quick, efficient, and convenient food delivery service for those on the go. This service aimed to meet the growing demand for fast food delivery, especially in busy metropolitan areas. However, after just four months, Zomato decided to shut down ‘Quick’, signaling that the service didn’t align with the company’s long-term strategy or profitability goals.
On the other hand, Zomato Everyday was another attempt to capture a niche market segment. This service was meant to provide ready-to-eat, homestyle meals delivered to customers’ doorsteps from select restaurants within a 2-kilometer radius. Although Zomato Everyday was designed to address the demand for convenient home-cooked food, the company realized that its reach and demand were limited, primarily being viable only in office locations across metro cities.
CEO’s Statement on Service Shutdowns
In an open letter to Zomato's shareholders, Deepinder Goyal, the CEO of Zomato, explained the rationale behind discontinuing both services. He emphasized that Zomato had conducted these experiments with the hope of expanding its offerings and reaching new customer segments. However, after assessing the situation, the company found that the path to profitability was not viable for either service. The primary issue stemmed from the company’s inability to deliver on the promise of quick food delivery without compromising the quality of customer experience.
In his letter, Goyal stated, “We are actually shutting down both these initiatives as we are not seeing 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.”
This comment reflected the challenges Zomato faced in scaling these services in a sustainable way. The fast-paced, high-pressure nature of ultra-quick delivery services, such as ‘Quick’, meant that Zomato could not maintain the same level of service quality and reliability that its customers were accustomed to.
A Close Look at the Failures: What Went Wrong?
Zomato Quick had a bold ambition—to deliver food in just 15 minutes. However, the logistics of such a venture are far more complex than they might initially seem. For one, there are several key factors that affect the success of food delivery services: the density of restaurants in the area, the efficiency of kitchen operations, and the speed of delivery personnel.
In order to meet the ambitious 15-minute delivery promise, Zomato would need a very specific infrastructure in place. This includes having a very high concentration of partnered restaurants and kitchens that are ready to prepare meals at the required pace. The issue arose from the lack of this density in certain regions, especially when it came to coordinating logistics and delivery processes across a variety of locations.
Additionally, the challenge was not just about the delivery times but also the inconsistency in customer experiences. For instance, food delivered in a rushed manner, within 15 minutes, may not always be of the quality customers expect from a premium food delivery service. The result? Customer dissatisfaction and a declining demand for the service.
As Goyal mentioned, Zomato did not observe a noticeable increase in demand during the time they experimented with ‘Quick’. Despite the novelty of the service, it failed to attract a large and consistent user base, especially in terms of those willing to embrace ultra-fast food delivery as a regular option.
The Zomato Everyday initiative, while catering to a different market segment—offering ready-to-eat homestyle meals—also faced its own hurdles. While some customers appreciated the convenience of having home-cooked food delivered, the reality was that the demand for such meals was limited. It was mostly relevant to office-goers in metro cities, but even in these locations, the interest was relatively low. Zomato Everyday was unable to generate enough return on investment (ROI), especially when operated at a small scale.
Previous Failures in the Quick Delivery Space
Interestingly, Zomato Quick wasn’t the first time Zomato ventured into the quick food delivery space. Back in 2022, Zomato had launched Zomato Instant, a similar initiative promising 10-minute deliveries in select cities, including Bengaluru and Delhi-NCR. However, the service was quickly shut down by January 2023 due to similar challenges. Zomato Instant’s failure had already exposed the difficulties of running a service that promised such rapid delivery times without compromising quality.
This repeated failure to crack the quick food delivery market raises an important question: Why is it so difficult to make ultra-fast food delivery work? The primary challenge lies in the need for a near-perfect system of restaurant coordination, delivery logistics, and operational efficiency, all of which must align to meet the high demands of speed and consistency.
Zomato’s Strategic Shift: Focusing on Core Competencies
While the shutdown of Zomato ‘Quick’ and Zomato Everyday may seem like setbacks, it actually reflects the company’s willingness to focus on what it does best. Zomato, at its core, is a food delivery service with a broad network of partner restaurants and strong logistical capabilities. The company’s strength lies in delivering food to customers quickly and reliably, but not necessarily at the breakneck speed of 10-15 minutes.
This strategic shift represents Zomato’s move to consolidate its core offerings—focusing on providing quality service rather than chasing ambitious, and ultimately unsustainable, service models. By cutting down on these failed experiments, Zomato can now redirect its resources toward improving its existing services, such as expanding its premium services, enhancing its restaurant partnerships, and investing in technology to optimize food delivery operations.
Moving Forward: Zomato's Future in the Competitive Food Delivery Space
Despite the closure of these services, Zomato remains a dominant player in the food delivery market. The company’s focus will now likely shift to improving operational efficiency, customer experience, and perhaps even exploring new initiatives like cloud kitchens, which have become increasingly popular in the food delivery industry.
Moreover, Zomato could explore other innovations in AI-powered delivery logistics, predictive ordering systems, and hyperlocal meal options. As food delivery services continue to evolve, companies like Zomato have a unique opportunity to adapt and grow by learning from past mistakes and refining their strategies.
In conclusion, while Zomato Quick and Zomato Everyday may have been short-lived experiments, their closure signals a more thoughtful, long-term approach to scaling food delivery services that prioritize customer satisfaction over unrealistic delivery timelines. Zomato is now focusing on refining its existing services and strengthening its position in the market, ensuring a better customer experience and maintaining profitability in the competitive food delivery landscape.
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