Will Zomato EVER become profitable? | Zomato VS Swiggy | Pavan Sathiraju #zomato #swiggy #blinkit

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Zomato share news today showed that the investor sentiment is not in the favor of the food delivery trying to become profitable in the next few quarters. Zomato’s Mohit Gupta who was promoted as a co-founder in 2020 recently resigned from the company. Not just that but Alibaba group sold its 3% stake in Zomato. Resignation by Mohit Gupta is not the only thing worrying Zomato since there have been two other high level executive resignations at the company recently.

Zomato's strategy to become profitable is depicted very clearly in the recent actions by the company. Zomato acquiring Blinkit formerly Grofers is a big step in this direction. Blinkit acquisition by Zomato will help the company become profitable in the future and also compete against its archrival Swiggy. Zomato VS Swiggy is the constant debate because these two companies have a duopoly in the Indian food delivery market.

Zomato's business model heavily relies on food deliveries at the moment while Swiggy has diversified its revenues. With services such as Swiggy Instamart and Swiggy Genie, Swiggy is currently at a much better position in the market than Zomato. Even after acquiring Blinkit, the road ahead looks bumpy for Zomato with the fall in its share prices paired with Zomato management resignations.

Zomato investors have high hopes from the food giant as its quick commerce arm is supposed to grow in the future. As soon as the quick commerce industry picks up pace in India, Zomato will surely see a rise in its profits. But in order to become profitable Zomato has to beat Swiggy and all the other major players who are going to enter the quick commerce market in the future.

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#zomato #zomatoshares #zomatoblinkit

Chapters

0:2 - History of Zomato App
0:54 - Zomato Quarterly Revenues
1:19 - Zomato VS Swiggy
3:03 - Economics behind Food Delivery business
4:13 - Why Zomato Acquired Blinkit
4:57 - Zomato Investors and Share News
5:32 - My opinion about Zomato’s profitability future