Eternal, the parent company of Zomato, has discontinued its 15-minute food delivery service, Quick, and the Everyday meal segment due to low demand.

This decision was announced by CEO Deepinder Goyal in a shareholder letter that included the company’s financial results for January to March.

Goyal indicated that both services did not have a viable path to profitability without compromising customer experience.

He mentioned that the current restaurant density and kitchen infrastructure were inadequate for maintaining efficient 10-minute food deliveries, prompting the halt of Quick.

🔗 Source: The Economic Times

🧠 Food for thought

1️⃣ Quick commerce faces fundamental infrastructure challenges in food delivery

Zomato’s decision to shut down its 15-minute “Quick” service highlights operational challenges that rapid food delivery ventures face across the industry.

Industry experts have expressed skepticism about the viability of ultra-fast food delivery models, noting that over 80% of food items typically require more than 30 minutes to prepare and deliver properly 1.

Competitors like Swiggy’s Snacc, Zepto Cafe, and Blinkit Bistro are also navigating the complex infrastructure requirements of 10-15 minute deliveries 2.

The tension between speed, quality, and profitability appears difficult to resolve given India’s current restaurant density and kitchen infrastructure, as Zomato’s CEO acknowledged when shutting down the service.

Restaurant partners have previously voiced concerns about the operational pressures of rapid delivery expectations, with the #Logout movement highlighting how speed and discount demands can strain business relationships 3.

2️⃣ Food delivery players struggle with niche service profitability

Zomato’s closure of its “Everyday” homely meals segment reflects a broader industry challenge of sustaining specialized food services at scale.

The company’s admission that homely meals represent a “limited use case largely for office locations in metros” demonstrates how segmented offerings often face profitability challenges when operating at small scale 4.

This mirrors experiences across the food delivery sector, where Zomato’s CEO previously acknowledged losing money on standard delivery orders (“We’re losing 7 rupees an order”), highlighting the thin margins that characterize the industry 3.