**Zomato’s Rebranding to Eternal: A Move Driven by Perception?**
Zomato’s recent decision to rebrand itself as Eternal Ltd has drawn attention, reminiscent of similar strategies employed by major tech companies like Meta and Alphabet. The implications of a name change can be significant, yet some industry experts argue that this shift may prioritize appearance over genuine substance.
While the Zomato app will continue to operate under its original name, CEO Deepinder Goyal views this rebranding as a crucial turning point for the company. In a letter to shareholders, he explained that the name “Eternal” was adopted internally following the acquisition of Blinkit, and the decision to officially rename the company was made when it became clear that ventures beyond Zomato would play a vital role in its future. With Blinkit’s growth and the emergence of new business verticals, Goyal believes that moment has arrived.
However, some analysts suggest that the rebranding is more about creating a façade of stability in a volatile market. One brand expert, who wished to remain anonymous, noted that the name Eternal signifies a desire for longevity in an industry characterized by unpredictability. He cautioned that the food and grocery delivery sector in India relies heavily on low labor costs, and any shifts in the labor market could pose significant challenges. Given that Indian consumers are particularly price-sensitive, the sustainability of this model remains in question.
Sandeep Goyal, chairman of Rediffusion, views the rebranding as part of a larger trend in corporate restructuring. He explained that modern companies often reconfigure their brand architecture, allowing for a clear distinction between the corporate brand and its service brands, such as Zomato and Blinkit. This approach provides greater flexibility for capital raising through various corporate maneuvers while keeping consumers largely unaffected.
Brand specialist Harish Bijoor emphasized that the name change is not merely superficial. He believes that the rebranding aims to enhance the overall presence of the parent company, ensuring that the individual brands operate under a more substantial umbrella. This strategic shift is intended to facilitate better market positioning and distribution across diverse business lines.
