I don’t think so. Beyond a certain point, it has a -ve impact on demand. Also in absolute sense, this is around 60-70crs of EBITDA on an annualised basis so not really anything significant to bottom line.
Would have rather preferred to undercut Swiggy since optically speaking Swiggy has poor unit economics. See below:-
FY23 | Zomato | Swiggy |
---|---|---|
Revenue | 7079 | 8265 |
PAT | -971 | -4179 |
Loss Margin | -14% | -51% |
There’s a reason why Swiggy is forced to raise platform fee but Zomato necessarily needn’t follow suit. Infact a delta of between 5-10 and my hunch is a lot of folks will shift from one platform to another.
Even in H1FY24, Swiggy seems to be recorded a loss of around ~$200mn which is 1600 crs… Zomato on the other hand has a profit of 38crs in H1FY24
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