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Can Swiggy Outserve Zomato’s Hyperpure With Assure?
- Zomato launched Hyperpure in 2018 to revolutionize the restaurant supply chain by providing a more organized solution for the HoReCa industry.
- Hyperpure currently operates in 100+ cities in India, serving over 40,000 partners with 4,000+ products, but it still has room for optimization in pricing, logistics, and product variety.
- Zomato's cash-and-carry model and lack of fixed-price contracts pose challenges for larger restaurant chains and impact long-term cost planning.
- Swiggy introduced the Assure app to streamline procurement for HoReCa clients and potentially compete with Hyperpure.
- The restaurant supply chain sector in India is only 20% organized, presenting a significant growth opportunity for players like Zomato and Swiggy.
- Swiggy's foray into the restaurant supply chain business complements its core revenue drivers of food delivery and quick commerce, offering potential for additional revenue streams.
- While profitability in the supply chain space may take 3 to 5 years to achieve, large order values make it a strategic move for companies like Swiggy and Zomato.
- A potential price war is expected between Swiggy and Zomato in the restaurant supply chain sector, leading to margin pressures for both players.
- Swiggy's Assure app aims to educate and onboard restaurants to structured supply chains, competing with Zomato's Hyperpure.
- Swiggy's entry into the supply chain business is seen as an effort to close the valuation gap with Zomato and strengthen its ecosystem, making it more appealing to investors.
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