The leaders of food delivering service- Zomato and Swiggy are diversifying their business from service base to product base.
In the previous article of food delivering startups, we got to know why Zomato, Swiggy, Foodpanda and Uber Eats are offering so much discount.
There are thousands of restaurants which are now affiliated with Zomato and Swiggy.
According to the economic times, Zomato is getting more than 28 million orders in a month and Swiggy is getting more than 20 million orders in a month.
Having a large investment amount to spend on marketing is helping two companies to grow a lot.
On the other hand, the major investors of these companies are now looking for some profitability. After investing millions of dollars, it is the company’s responsibility to make a business profitable.
For gaining more and more consumers, Zomato and Swiggy have been giving huge discounts for a long time.
Both the companies have been expanding their business speedily and that helped them to associate with more and more restaurants.
Because of having discounts, the volume of restaurants has increased a lot but the profit is still stable.
The mindset of going to the restaurants is slowly changing to ‘order food online‘.
That is the reason most of the restaurants’ owners will not close their affiliation with food delivery companies. Considering the game of monopoly, the companies may charge more to the restaurants. And eventually, restaurants will get less profit from online food ordering!
Zomato’s premium membership is Zomato Gold and Swiggy’s premium is Swiggy Super.
That’s how both the companies are trying to retain more consumers and getting revenue from it.
In the beginning of 2019, Zomato and Swiggy have started opening their own food outlets.
The consumers are using the mobile app to order food online. Now the companies have their own outlet in a few cities yet. So they will force consumers to order food their own outlet!!!
The companies will stop giving discounts to the other restaurants and will start giving discounts on their own food outlet.
Thousands of restaurants who cannot control what Zomato and Swiggy are doing in their app.
That’s how Zomato Swiggy monopoly game may destroy restaurants in the long term.
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All the articles are written by Anuj Vohra