Eternal's Bold Moves: Shutting Down Zomato Quick Amid Profit Struggles

Eternal, previously known as Zomato, posted a net profit of Rs 39 crore in Q4. Despite revenues of Rs 5,833 crore, the firm shut down Zomato Quick, citing profitability challenges. CEO Deepinder Goyal resumed leadership as competition intensity rises in the quick commerce space.

Leading food delivery and quick commerce firm Eternal, the owner of brands Zomato and Blinkit, announced a consolidated net profit of Rs 39 crore for the fourth quarter ending in March. Despite an increase in operational revenue, the company's decision to shut down Zomato Quick and Everyday businesses reflects its strategic response to profitability challenges.

As Eternal repositions itself in the market, CEO Deepinder Goyal has stepped back into the role to guide the company through these critical changes. The company cites infrastructure inadequacies and market dynamics as reasons for discontinuing rapid delivery services, prioritizing customer experience over aggressive expansion.

The competitive environment in quick commerce is expected to intensify, with serious implications for business strategy. Eternal remains optimistic about its long-term prospects, despite sluggish demand and industry expansion pressures. The company announced its highest-ever net store expansion, but also highlighted the struggle with under-utilized resources during this period.

(With inputs from agencies.)