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

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.

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.

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

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

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.

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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

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

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.

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 …

Good initiative @looter143 kg+ Vu

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.

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

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.

Oh my my✋🏼 who do we have here.. brainstorming!