Eternal, the parent company of Zomato, has said it continues to see strong customer retention in its food delivery business despite increasingly aggressive pricing strategies adopted by competitors. The company also stated that the impact of emerging food delivery platforms, including Toing and Ownly, has so far remained limited.
Reported by ANI, the comments came as part of the company’s latest communication to investors, amid intensifying competition in India’s online food delivery market. Over the past few months, newer entrants have attempted to gain market share through lower pricing, discounts and promotional offers, raising questions around customer loyalty and competitive dynamics.
Addressing these concerns, Eternal said its existing customer base has remained resilient, indicating that competitive pricing from rivals has not significantly altered user behaviour on its platform. The company also noted that the influence of newer players such as Toing and Ownly on its overall business continues to be limited at this stage.
The statement comes at a time when India’s food delivery ecosystem is witnessing renewed competition, with startups experimenting with alternative commission structures, subscription models and lower-cost offerings to attract restaurants and consumers. While these strategies have sparked discussions across the industry, Eternal maintained that customer retention on its platform has remained strong.
For Eternal, customer retention continues to be a key metric as the company focuses on strengthening its ecosystem through restaurant selection, delivery reliability, affordability initiatives and overall user experience. The company has previously highlighted customer-centricity as one of its core priorities, alongside improving accessibility and service quality.
FAQs
1. What did Eternal say about customer retention?
Eternal said its food delivery business continues to witness strong customer retention despite aggressive pricing strategies adopted by rival platforms.
2. Why is Eternal confident despite increasing competition?
The company believes its customer retention remains strong and stated that the impact of emerging competitors such as Toing and Ownly has been limited so far.
3. Who are Toing and Ownly?
Toing and Ownly are emerging players in India’s food delivery ecosystem that have been using aggressive pricing and promotional strategies to attract customers and restaurants.
4. What is driving competition in India’s food delivery market?
The market is witnessing intense competition as both established platforms and new entrants compete through discounts, pricing strategies, improved delivery experiences and customer-focused offerings.
5. Why is customer retention important for food delivery platforms?
Customer retention indicates how effectively a platform can keep existing users engaged over time. Strong retention can help businesses reduce customer acquisition costs and support long-term, sustainable growth despite rising competition.
