Can The Merger Of Swiggy And Zomato Give Amazon and Uber Run For Their Money?

Must Read

Social Media Influencers On Hackers’ Target: 100,000 Accounts Leaked On Dark Web!

With influencer marketing and sponsored content being on the rise, more and more content creators, some even...

The Sudden Rise In The Demand Of Refurbished Smartphones In India!

The new normal is changing the dynamics of the Indian smartphone industry. In the last two to...

Google To Start Paying News Publishers For Showing Content In Search Result

After several discussions and negotiations, the mighty Google has finally announced the much-awaited good news for "selected"...

As the global tech giants Amazon, Uber and also Flipkart (rumoured) getting into the game of food-delivery business in India, it is quite possible that homegrown food delivery startups Swiggy and Zomato would want to band together to fight for their existing market share collectively.

It is being reported that an online news outlet has recently spoken to an undisclosed source who is directly connected to the discussions of a potential merger between the two home-grown food delivery startups Zomato and Swiggy. Investors from both the companies are allegedly giving serious thought to the synergy and have been reported to have held meetings to discuss the possibility of a merger.

The undisclosed source mentioned that though there are no such concrete timelines, the proposal of a potential merger is something that interests both the parties at this point in time. However, we believe that it is too early to predict the possible future of the merger actually going through. This was also the case back in 2017 when sources mentioned that there were talks of a merger between the two startups Zomato and Swiggy back then but it quickly fell apart due to some major differences of business thought alignment between the two companies.

Advertisements

Back then executives from Zomato – the Gurgaon-based startup had shown a keen interest in a stock-based merger. On the contrary, executives from Swiggy, the Bengaluru-based startup, was keen to acquire and operate the entire food delivery business of Zomato. They wanted Zomato to continue as a restaurant search and discovery only business whilst being a shareholder in Swiggy and therefore the whole discussion couldn’t reach to any conclusion.

Now in 2019, with global giants such as Amazon and Uber trying to strengthen their position in the Indian food-delivery market, the potential threat of losing major market share might just have turned real for both the Indian companies that are bleeding badly. Swiggy which currently holds the top-most position in the market has reported a loss of Rs 397.3 crore on revenue of Rs 442.3 crore in FY’18. Zomato which currently hold the second position just after Swiggy has reported a loss of Rs 1,001.1 crore on revenue of Rs 1,397 crore in FY’19. This clearly proves they are not really running at their most financially optimal positions respectively.

(Source: Morsonic) The Indian Online Takeaway market is predicted to grow at an exponential rate.

So where do we see the ‘renewed’ merger talks of the Indian home-grown food delivery startups Zomato and Swiggy heading towards?

As of right now, it is quite difficult to ascertain as to where they are exactly heading in terms of a concrete solution.

Meanwhile, a Zomato spokesperson has outright rejected the news on the possible merger by saying that the latest speculation is absolutely untrue. It has often been noticed that companies try to keep topics as sensitive as mergers strictly under the wraps until they (both parties – Zomato and Swiggy) have reached a conclusive and final answer, so it can quite possibly mean that or either it’s just another rumour to stir up controversy in the business world. Be it what may, the threats of losing possible market share to the giants such as Amazon and Uber are quite undeniably true and therefore it will be interesting to see how Zomato and Swiggy plan to hold down their fort when trouble finally comes knocking to their front doors!

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Advertisements

Latest News

Net Worth Of Jeff Bezos Is More Than Combined Net Worth of India’s Top 10 Richest People!

Jeff Bezos and the phrase 'World's Richest Person' has become synonym to each other. But after the...

Update Your Windows OS Immediately: Microsoft

The mandate is clear from Microsoft; you must update Windows OS immediately! Microsoft Corp (NASDAQ: MSFT), as of late,...

The Ordeal of Millions Of Users Of Banned Apps in India!

The recent ban of 59 Chinese apps by the Indian Government, albeit being a move in the right direction to get rid...

Ban On TikTok: Where All TikTok Stars Are Heading To?

Does the ban on TikTok pave an excellent way for Instagram to gain the momentum in business? Yes, as...

Facebook’s New Algorithm Change: A Big Boost To Original Reporting!

Facebook, Inc. (NASDAQ: FB), after long being continuously criticised for meting unfair treatment to news publishers, is currently taking huge strides in...

Search Engine Optimization In Digital Era: Look Beyond Traffic

Search engine optimization, aka SEO, plays a vital role in today's online world, especially if it's about running a business online that...

In-Depth: Dprime

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

Fantastic 4: Four Day Work Week A Flashpoint Of Innovation?

It has been an idea that has been mooted by many, perhaps also somewhat sceptically. From being a dark horse to becoming...

TikTok Is Facing The Wrath Of People Who Love It The Most

Ever since the popular social media app TikTok entered India, it has been growing very aggressively in terms of users. Within a...

More Articles Like This