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If Zomato is profitable, why does that worry me?

  • Zomato and Swiggy riders reveal that Zomato pays better despite fewer trips compared to Swiggy.
  • Restaurants quietly raise prices to cope with the 30-40% commissions charged by delivery apps, leading to dissatisfaction among customers.
  • Some middle-class users only order from these apps when necessary, like during bad weather or when transportation is unavailable.
  • Despite Swiggy having a cheaper valuation than Zomato, Zomato is seen as the winner due to its ability to attract 'power users' who order frequently.

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