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How Swiggy & Zomato Are Hitting The Brakes In The Race To Be Everything Everywhere All At Once
- Swiggy and Zomato have been engaged in a battle for expansion, mirroring each other's moves to dominate various sectors.
- Both companies are now focusing on core operations to drive profitability by stepping away from non-core bets.
- Zomato gave up on its 15-minute food delivery service and home-made meal service due to unsustainable operations.
- Swiggy also retreated from its courier service and private label food business to streamline operations.
- The shift in strategy indicates a realization that profitability relies on smart diversification rather than unchecked expansion.
- Both companies faced challenges in managing multiple verticals, leading to operational inefficiencies and revenue impact.
- Zomato embarked on diversification to combat a slowdown in its food delivery business, acquiring new verticals like Insider.
- Swiggy introduced new services like Bolt, Snacc, and Pyng but later consolidated its operations by shutting down Genie and private label brands.
- The companies' rapid diversification led to financial pressures with strong top-line growth but significant net losses.
- Zomato and Swiggy are now reconsidering their expansion strategies and focusing on more sustainable revenue streams like platform fees.
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