The incorporation of this new subsidiary, which will operate in the food services segment, comes at a time when the company is expanding its 10-minute food delivery offering, Bistro. In a letter to the shareholders, Eternal founder and CEO Deepinder Goyal said that the company has 38 Bistro kitchens across Bengaluru and Delhi-NCR.
“Early data is encouraging as the kitchens are generating incremental demand without cannibalising the Zomato business. Through Bistro, we are tapping into two demand pockets so far unaddressed by Zomato—customers looking for high quality but low cost meals (think customers who buy from home chefs) and customers looking for snacky food in 10 minutes,” he said.
“While customer side traction is pretty strong, we need to work and find answers to making money in this business. We will therefore continue to make calibrated investments towards building a scalable and profitable business here, and will keep you posted when we have more to share,” Goyal added.
