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Brainstorm #1 : How can Zomato & Swiggy be profitable? Share your thoughts & Idea!

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Chennai Super Kings
looter143

We’re a community of young & intellectual crowds. We think wisely before any brand tries to fool us with any gimmick campaign or offers. Hence, every Friday from today onwards, I’ll ignite a flame of curious questions about businesses/start-ups/Problems around us & ask you all to brainstorm your mind and share your ideas on how/why things could be done/achieved? This will help us to acknowledge different ideas for a problem & develop real life problem solving skills.

Starting with Today, you’ve been intrigued with the fact that Zomato is planning to go ahead on 10 mins delivery which seems impossible but yeh, let’s not be so pessimistic. We all know that this will happen one day very soon.

But every time I heard of Zomato or Swiggy, I feel how can they turn their business model into profitability 🤔

As I saw Ashneer Grover saying in one of an episode of Shark Tank India that “One can’t make money delivery order physically under the packet size of ₹300”.

But we all looters barely order from Zomato/Swiggy/Magicpin more than 200. Every time we go to Zomato/Swiggy, we search for an item and look for at least a 60-40% discount and try to loot each deal-breaking offer or a promocode bug .

From the Dimers POV, it’s good and only for that we are all on DD hunting deals all the time.

But for now, Imagine yourself to be the CEO of Swiggy/Zomato & from a business perspective, try to brainstorm how can your company be profitable without without declining revenue & existing customers just like you do brainstorm to take up maximum discounts from these brands.

(It’s okay if you’re not going to post the idea but I request you to read all the ideas of different Dimers and upvote this post to encourage me to post more such amazing posts in future)

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Deal Newbie Deal Newbie
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https://cdn0.desidime.com/attachments/photos/755992/medium/images.jpeg?1648768003

Deal Subedar Deal Subedar
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same like redbus did,

Now bus ticket we only have rebus in mind, even without offers we’re ready to book bus because we’re fixed to that online culture.

How can Zomato & Swiggy be profitable : Online Culture

Deal Subedar Deal Subedar
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Before COVID, read an article that Faasos is proving that cloud kitchens can guarantee profits than traditional restaurant setups. In 2019 even swiggy and some other players tried to start their own kitchens and push it more but by then corona happened so they slowed down and some got shut down.

Deal Subedar Deal Subedar
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What I heard is they charge hefty amount from the restaurant as a commission and nowadays they started collecting in form of tax where there are many hotel doesn’t even charge tax if you visit physically.

Price is always different online and physical

They have reduced for delivery boys also

Deal Newbie Deal Newbie
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All the offers and promotions on their platform are funded by restaurant owners

Deal Cadet Deal Cadet
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saravananbaskaran wrote:

What I heard is they charge hefty amount from the restaurant as a commission and nowadays they started collecting in form of tax where there are many hotel doesn’t even charge tax if you visit physically.

Price is always different online and physical

They have reduced for delivery boys also

tax they have to pay to Modi ji 😂😂😂

Deal Subedar Deal Subedar
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More over food is an addiction. Now delivery companies are burning cash to get us addicted and covering those losses from restaurants through commissions, result is inflated prices. I think restaurants should operate their delivery kitchens and dine in kitchens separately. Then both delivery companies and restaurants will be mutually dependent to get profits so they might not try to loot each other and share profits as per their roles.
Restaurants think they can survive without delivery companies. Partly true But COVID proved that delivery companies can’t be ruled out from profits formula.

Hunk Hunk
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Deal Lieutenant Deal Lieutenant
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Only way i see Them profitable are providing more offers and investing heavily in hospitals and other sectors where people will reach after spoiling their health

Deal Cadet Deal Cadet
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As far as I know these companies are also engaged in money laundering also , They gets funds from ministers and corporaters and real estate agent and turn there black money into white at 20-25 percent commision

Deal Cadet Deal Cadet
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CA.MAYANK.KOTHARI wrote:

As far as I know these companies are also engaged in money laundering also , They gets funds from ministers and corporaters and real estate agent and turn there black money into white at 20-25 percent commision

how zomato convert black money to white?😳

Analyst Analyst
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I’m an irregular user of this platforms.

Irregular -> When it becomes real difficult to cook/prepare food like just came home after a long travel, or couldn’t cook due to other priorities.

The big items like biryani/pizza during lunch or dinner is not making much price difference between swiggy vs direct store purchase. Again the options I have are limited, meaning mostly pizza or biryani, and that too veg. I can only offset my petrol expense or their delivery charges via some coupon code. But I did notice quite a few price gap between online vs offline for breakfast.

Once we were sick, we decided to bring Idli from nearby hotel (hardly 700m from my location). When looked at online, the prices looked little exorbitant, and in addition to that delivery charges. Instead I choose to walk gathering all the energy I can, and bought it from the store. The price is exactly the half when purchased in store. This is again for Idly and one place. Now there are several items, and several locations.

On a simiar note, the restaurant is supposed to pay some commission to these platforms, so as a result, some restaurants will jack up the price to rub the commission on end users. The platforms get the commission from restaurants without fail. And they burn money in the name of offers and make it a habit to visit them for all their requirements. 

And on a different name, the recent generation has already considered eating from swiggy/zomato as a birth right.

Community Angel Community Angel
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jeff_bezos_amazon_owner wrote:

how zomato convert black money to white?😳

Jeff chacha is asking this 😳😜 It feels the same as Vijaya Mallaya applying for SBI credit card 😝😛

Deal Cadet Deal Cadet
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RowdyAK47 wrote:

Jeff chacha is asking this 😳😜 It feels the same as Vijaya Mallaya applying for SBI credit card 😝😛

I was intrigued knowing that a C.A was saying that comment

Chennai Super Kings Chennai Super Kings
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CA.MAYANK.KOTHARI wrote:

As far as I know these companies are also engaged in money laundering also , They gets funds from ministers and corporaters and real estate agent and turn there black money into white at 20-25 percent commision

how and what is the source of this piece of information?

Deal Subedar Deal Subedar
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Zomato will eventually become profitable. They are trying every damn model, like last year they tried health suppliments, grocery services. I think both of them are dead now, so they will keep on trying (10 min food delivery, Blinkit etc) and eventually they will find something that works to make money.

I think, they might try courier, rider for rent etc services if not nothing else. Even cloud kitchen …

Chennai Super Kings Chennai Super Kings
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Manitian wrote:

Zomato will eventually become profitable. They are trying every damn model, like last year they tried health suppliments, grocery services. I think both of them are dead now, so they will keep on trying (10 min food delivery, Blinkit etc) and eventually they will find something that works to make money.

I think, they might try courier, rider for rent etc services if not nothing else. Even cloud kitchen …

which rapido and uber are giving as package Delivery?

Deal Subedar Deal Subedar
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looter143 wrote:

which rapido and uber are giving as package Delivery?

Who knows even CC payment, even courier, and who knows what …

Chennai Super Kings Chennai Super Kings
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Manitian wrote:

Who knows even CC payment, even courier, and who knows what …

a food delivery app is now, fintech, logistics, grocery delivery & what not but still not profitable.

Deal Subedar Deal Subedar
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Good initiative @looter143 plus1 kg+ Vu

Chennai Super Kings Chennai Super Kings
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prem4998 wrote:

Good initiative @looter143 plus1 kg+ Vu

Thanks. This will encourage me to gather some more insightful questions/problem to brainstorm.❤️🤩

Deal Subedar Deal Subedar
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looter143 wrote:

Thanks. This will encourage me to gather some more insightful questions/problem to brainstorm.❤️🤩

Please keep it going plus1

Deal Subedar Deal Subedar
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In tier 1 or tier 2 peoples are busy in their life job/entertainment etc.

They have money as mostly tier 1 or 2 people are rich and above middle class.

Once they addicted to outside food and once they forgot everything about cooking these food delivery app will come in power with zero discount and they starts offering the items same as offline price. 

That is be the final aim of these companies.

Chennai Super Kings Chennai Super Kings
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Smiling wrote:

In tier 1 or tier 2 peoples are busy in their life job/entertainment etc.

They have money as mostly tier 1 or 2 people are rich and above middle class.

Once they addicted to outside food and once they forgot everything about cooking these food delivery app will come in power with zero discount and they starts offering the items same as offline price. 

That is be the final aim of these companies.

Yes, they’re burning their cash in making habit in customers.

Like Magnet Like Magnet
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Swiggy and Zomato has 30% comission in what you order.

Chennai Super Kings Chennai Super Kings
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sanketpero wrote:

Swiggy and Zomato has 30% comission in what you order.

still they are not be able to make profit yet exploiting riders and restaurants.😔

Entertainer Entertainer
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Just came accross this article.
The dimer community or people looking for discounts everytime are not the target audience.
Even if they can break even with users like us in the future, it’ll be a win for them.
We are very small part of their userbase.

Chennai Super Kings Chennai Super Kings
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Chandler_Bing wrote:

Just came accross this article.
The dimer community or people looking for discounts everytime are not the target audience.
Even if they can break even with users like us in the future, it’ll be a win for them.
We are very small part of their userbase.

true and agreed

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