Under Quick, Zomato aggregates restaurants and eateries from where it makes rapid delivery of a limited set of food items. This service rivals Swiggy’s Bolt, which the Bengaluru-based company said last month was contributing 9% to its food delivery volumes.
The rollout of Quick came at a time when the overall food delivery industry was witnessing a slowdown. Zomato’s food delivery vertical grew 17% year-on-year (YoY) in the October-December 2024 period, down from a 27% growth in the same period last year.
Brokerage firm ICICI Securities had earlier flagged that Zomato risks losing market share in food delivery to Swiggy, which has scaled up its Bolt service to over 400 cities.
In addition to Quick, Zomato-owned Blinkit is also piloting its own 10-minute food delivery offering, Bistro.
“Blinkit is experimenting with 10-minute food delivery. Outside of that, Zomato itself is trying to do the quick version in collaboration with restaurants, called Zomato Quick, and that’s around 8% of volumes right now. That’s something we’re working on,” Goyal said.
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This is Zomato’s second attempt at rapid food delivery after it shut down an experiment called Zomato Instant in 2023 and rebranded it as Everyday. Through Instant, Zomato was trying out 10-minute food delivery from centralised kitchens located close to the customer.However, it revamped this service into Everyday – a home-style meal service through similar centralised kitchens. The company has scaled up the Everyday offering across major cities in India.
Goyal said that, over time, different use cases will emerge for 10-minute food delivery.
“It’s not just about the (delivery) time but also the type of food that you serve and how you prepare that food – whether you make it in factories or make it fresh. There are a lot of factors that will decide this, and there will be so many different variants of 10-minute food delivery, which will serve different use cases,” he said.
“Zomato Everyday is another version of 10-minute food, and it has worked really well. That is being scaled, and we’re scaling it with restaurant partners. But that alone doesn’t solve for growth in food delivery,” Goyal added.
Even though quick commerce is one of the fastest-growing verticals for Zomato, food delivery is still its biggest business, contributing 42% to the company’s revenues. It is also Zomato’s only profit making and cash generating segment.
