Zomato, the food delivery giant, has recently announced a major rebranding plan, signifying its shift from meal delivery to a more comprehensive service hub. The company’s board, in their attempt to support the strategic rebranding, has come up with a resolution to change the name of the parent company to Eternal Limited, which marks another beginning in the company’s history. This is good news for the company’s future as it will provide it with the opportunity to go in different directions.
The rebranding live is proof of Zomato’s growth from its roots as a food ordering and delivery platform, now a suite of services that includes quick commerce through its purchase of Blinkit. Deepinder Goyal, the co-founder and CEO of Zomato, makes it clear that the company has been using the name ‘Eternal’ since the Blinkit takeover in an informal manner to draw a line between the company and the flagship product. This aspect that the company is positioned out of the food ordering field and has entered other market segments is a powerful one that this shift in corporate identity is proof of.
In the corporate umbrella of Eternal Limited, there will be four main business directions in the company: Zomato (food delivery), Blinkit (quick commerce), District (dining services), and Hyperpure (supply chain solutions). The structure implies that the company’s strategic diversification and its goal to be an all-in-one consumer services platform will be met. Nevertheless, in spite of the corporate branding, the Zomato app and brand are to remain unchanged with its present name so that the customers have the same impression of the company’s food delivery service as they used to do.
Zomato’s presentation of itself in the public arena will be completely different in a limited time. The corporate website will detour from zomato.com to eternal.com, and the company’s stock ticker will be upgraded from ZOMATO to ETERNAL. These modifications are intended to demonstrate the company’s broader range of business while still maintaining the strong brand recognition of Zomato in the food delivery sector. The change is similar to other technology behemoths that have rebranded their parent companies to involve a wider variety of services, such as Google’s shift to Alphabet Inc.
Goyal stressed the importance of the name ‘Eternal,’ explaining that it means a lot and represents not only resistance but also vitality and lastingness. He added that real permanence is not about making the boldest claims but rather evolving to accommodate the challenges of the future. This attitude transects the company’s determination to change in a rapidly moving market and to align with the current tastes of the consumers, a key factor in the high-speed and highly competitive technology industry.
The rebirth happens at a time when Zomato is bulletproof against the salient growth and the broadening of its activities. Last quarter, the company earned a 64% revenue growth from all its business activities, which amounted to Rs 5,404 crore. Nevertheless, net profit dropped by 57% year-on-year, delineating the company’s persistent investments in the expansion and new business sectors. Eternal Limited is likely to be a more effective framework for managing and reporting on these multiple business lines.
The renaming is greeted with mixed responses from both investors and industry analysts. It’s viewed as a good first step towards getting people to feel that the company is developing and setting very ambitious goals, thus more likely to attract investment and possible partnerships. In the same vein, others fear a possible overinflation of the Zomato brand, which is already on the crest in the food delivery market. Nevertheless, the company’s commitment to the Zomato brand as the exclusive name for food delivery has somewhat pacified some of these concerns.
In addition, the rebranding decision is made in a market where competition is rising between Indian tech and consumer services companies. The emergence of arrivals, who are extending their products, as well as new entrants, means that Zomato can be the winner in this whole process as a multi-vertical brand under the Eternal Limited banner. The changed configuration may give the company also more opportunities to purchase or bring closer other companies with which it hasn’t really interacted in the past.
As the Eternal Limited concept comes to being, the company will find itself at the crossroads of having several brands and business lines management along with keeping operational efficiency and profitability high. The success of this reintroduced strategy seems more likely to come from how well the company can exploit the few areas they address to create some synergies and, hence, push the various verticals. On the other hand, if the Indian consumer tech sector continues to change fast, the endurance through innovative adaptations of Eternal Limited will be a factor in its success in such a volatile scenario.
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