Rebranding Zomato: 'Eternal' Ambition or Strategic Necessity?

A name can mean everything—or nothing. When Zomato recently renamed its corporate entity to Eternal Ltd, it sent ripples through the industry. Was it a strategic masterstroke, a branding experiment, or an attempt to manifest permanence in a volatile sector?

For consumers, little has changed—the Zomato app remains Zomato. For CEO Deepinder Goyal, however, this represents a defining moment. Reflecting on the move in his letter to shareholders, he explained, “We started using ‘Eternal’ internally when we acquired Blinkit, and we decided we would rename the company when something beyond Zomato became a significant driver of our future.” With Blinkit’s rapid expansion and new ventures emerging, Goyal believes that time has come.

But is this a bold symbol for future growth or an exercise in optics designed to reassure stakeholders?

Behind the Name: A Desire for Permanence?

There’s no denying the ambition behind the name Eternal—a word that conveys longevity and consistency, qualities much desired in the turbulent food and grocery delivery industry. But does the rebranding reflect a deeper vision, or is it as fleeting as the trends in the highly competitive sector?

Industry experts are divided. Some see the name Eternal as an attempt to project stability in an unforgiving market driven by low operational costs and price-sensitive consumers. A branding consultant remarked, “The food and grocery delivery business in India depends heavily on cheap labor. However, with manufacturing growth in northern states like Uttar Pradesh and Bihar offering better opportunities, the tight labor market could jeopardize this model. Indian consumers’ reluctance to pay higher delivery fees further adds to the sustainability challenges.”

Others argue the rebranding is forward-thinking, offering Zomato strategic flexibility. Sandeep Goyal, chairman of Rediffusion, likens the move to corporate rebrandings like Alphabet and Meta, enabling companies to expand into multiple domains under a singular umbrella. “By renaming the corporate entity, businesses can pursue mergers, spin-offs, and capital raises seamlessly without affecting consumer-facing brands.”

Similarly, brand expert Harish Bijoor sees this rebranding as more backend-facing than consumer-centric. “It’s a signal of formalizing an umbrella strategy where Zomato becomes one brand among many under Eternal. While it may excite shareholders, it won’t affect the daily experience of the average user ordering biryani.”

Following the Global Playbook?

Zomato is far from the first company to rebrand in this way. Industry heavyweights such as Meta, Alphabet, and X (formerly Twitter) set precedents in using name changes to signify shifts in direction. Meta’s rebranding heralded a pivot to metaverse ambitions, Alphabet repositioned Google as a multi-vertical conglomerate, and X aimed to remodel Twitter into an "everything app."

These shifts didn’t just reflect new visions—they also provided a clean slate in times of change or controversy, revitalizing these brands. While Zomato’s move shares parallels, it stands out within the Indian corporate landscape.

Here, established giants like Flipkart, Airtel, and Reliance Jio have diversified extensively without changing their core branding. For example:

• Flipkart operates in payments, logistics, and video streaming but retains its brand name.
• Airtel Digital manages non-telecom ventures while staying tied to the recognizable Airtel identity.

Zomato’s rebranding to Eternal defies this tradition. It raises the stakes for Indian corporations and could potentially set a new standard for companies entering diverse verticals. Will others follow suit if Eternal proves successful, or will they stick to tradition?

The Real Challenges Ahead

While rebranding offers symbolic value, the decision to label itself as "Eternal" invites significant pressures. Goyal himself acknowledged this in his shareholder letter, calling the name "ambitious" and admitting the weight of expectations it carries.

Thus far, the move seems to function as a corporate restructuring tool aimed at investors and industry insiders rather than consumers. Should the company execute its vision effectively, this shift could pave the way for:

• Greater prominence of hyperlocal delivery brand Blinkit under the Eternal umbrella.
• Strategic spin-offs of successful verticals.
• Expansion into new acquisitions or innovative business areas.

However, no amount of branding can distract from the real threats looming over the food and grocery delivery model, including:

• Labor Dependency: Rising wages and urban migration trends could strain Zomato’s cost-effective operations.
• Unit Economics: Turning a profit remains notoriously difficult due to razor-thin margins.
• Price Sensitivity: Indian consumers continue to demand value for money, resisting price hikes in delivery services.

Without significant innovation and improvements in operational efficiency, changing the corporate name may have little real-world impact.

Will Eternal Live Up to Its Name?

This rebranding comes at a pivotal moment for Zomato, now Eternal Ltd. Investors and analysts will undoubtedly scrutinize the company’s next moves. Will this shift breathe new life into Zomato’s narrative, attracting fresh capital and solidifying its position as a multi-vertical giant? Or will skeptics dismiss it as little more than corporate theatrics?

At its core, the success of Eternal will depend on its ability to deliver tangible results. Branding alone cannot secure business survival. To thrive in an industry as volatile as food and grocery delivery, Eternal will need breakthroughs in innovation, streamlined operations, and development of a truly sustainable business model.

The name suggests permanence, but only time will reveal if the company can embody its ambitious new identity in a sector where nothing feels eternal.

Feel free to share your experiences and insights in the comments below. Let's continue the conversation and grow together as a community of traders and analysts.

By sharing this experience and insights, I hope to contribute to the collective knowledge of our professional community, encouraging a culture of strategic thinking and informed decision-making.

As always, thorough research and risk management are crucial. The dynamic nature of financial markets demands vigilance, agility, and a deep understanding of the tools at your disposal. Here's to profitable trading and navigating the election season with confidence!

Ready to stay ahead of market trends and make informed investment decisions? Follow our page for more insights and updates on the latest in the financial world!

For a free online stock market training by Yogeshwar Vashishtha (M.Tech IIT) this Saturday from 11 am - 1 pm, please sign up with https://pathfinderstrainings.in/training/freetrainings.aspx

Experience profits with my winning algo strategies – get a free one-month trial with ?15 lakh capital! – https://www.terminal.algofinder.in/auth/register

Disclaimer

This article should not be interpreted as investment advice. For any investment decisions, consult a reputable financial advisor. The author and publisher are not responsible for any losses incurred by investors or traders based on the information provided.