Zomato’s CEO Deepinder Goyal responded to Swiggy co-founder and CEO Sriharsha Majety’s Twitter post saying the online food delivery service had seen financial success in March 2023.
Any industry’s competition is a key factor that motivates businesses to go above and beyond in an effort to maintain their lead. However, as was evident on Thursday, bitter rivalry between two businesses is not usually the result of severe competition.
Swiggy co-founder and CEO Sriharsha Majety said on Twitter that the online meal delivery service experienced financial success in March 2023, with the persistent work of several teams around the firm being the main factor.
“Thrilled that in March of this year, Swiggy made its food delivery company profitable while adding value for all of our partners. Our employees have given their all to create long-term value while consistently putting consumers first, Majesty remarked.
Zomato‘s CEO and founder congratulated the teams and thanked them for their efforts in a tweet.
On Sunday, Goyal tweeted that 150 cakes were being ordered on the site per minute in honor of Mother’s Day, comparing the number of orders to New Year’s Eve.
Recent Zomato swiggy incident:
The initial food delivery volumes on the Open Network for Digital Commerce (ONDC) are unsustainable, according to an increasing number of internet analysts. Analysts at JM Financial have recently noted that the ONDC, in its current form, isn’t a danger to any player’s business, contrary to comments made by Jefferies and Motilal Oswal Financial Services Ltd (MOFSL) that the ONDC will not terminate the duopoly of Zomato and Swiggy.
There has been a recent uproar, and many people think that eateries connected to the (open) network would be able to provide consumers with better costs. Hence…Because it has the potential to become a strong third player, ONDC has the ability to upend the online meal delivery business. But we strongly disagree with many of them.
The initial food delivery volumes on the Open Network for Digital Commerce (ONDC) are unsustainable, according to an increasing number of internet analysts. After Jefferies and Motilal Oswal Financial Services Ltd (MOFSL) claimed that ONDC would not break up Zomato and SWe’s monopoly, we vehemently dispute several of these claims. In a report published on May 17, the analysts at JM Financial stated that ONDC is “far from shaking up the online food-tech industry in its current shape and form.”
Zomato and Swiggy together dominate more than 90% of the $5 billion meal delivery business in India. However, the duopoly has dissatisfied eateries. The Indian National Restaurant Association
The two businesses have frequently been referred to as “digital landlords” by the National Restaurant Association of India (NRAI), mostly due to the commission rates they charge. Generally speaking, the take rates for Zomato and Swiggy are both about 25%.
Additionally, the NRAI has charged that the major companies do not give the restaurants customer information that would enable them to properly plan deals and inventories. Giving owners more control over their data is exactly what ONDC wants to do to fix that.