Additional charges ranging from Rs 15 to Rs 35 are intended to assist delivery partners during harmful weather conditions. This move is in line with the broader efforts of companies to improve profitability, particularly as losses on rapid commercial transactions continue to increase.
Food delivery remains the core revenue driver for both platforms. In the March quarter, Zomato’s food delivery segment (parent eternal) reported a adjusted EBITDA of Rs 428, up 55% year-on-year. Swiggy’s food delivery Ebitda was 212 rupees, registering a jump of five times the previous year. These benefits underscore the increasing dependence on food provision to maintain overall financial performance.
On BSE, Zomato’s shares rose 2% to touch Rs 247.2 at a daily high, while Swiggy shares rose 3.3% to Rs 326.8 in trading on Friday.
Zomato Q4 Performance
Zomato’s parent company Etern reported a decline in net profits at Rs 39 crores during the March quarter, 78% (Yoy) compared to the previous year. The Gurugram-based company’s operating revenue rose 64% to Rs 5,833 trillion, primarily led by Blinkit’s growth. Blinkit’s growth rose 75% at the expense of operating losses, steadily increasing to Rs 178.
Food delivery, the company’s mature business, continued to grow slowly. CEO Deepinder Goyal was attributable to weak discretionary spending and the increased influence of rapid commercial transactions on both operations and demand.
However, market share remained stable, with the hopes of some profits going forward, Goyal said.
The volume of food delivery orders was affected after Zomato was delisted in the March quarter. These restaurants were excluded from Zomato because they did not pass hygiene standards, mimic established brands, or operated multiple identical menu lists to take on more listing impressions.
Also Read: Mumbai’s deep Shenzhen stock ticker reveals claims of victory in Pakistan’s four-day air battle
The company has closed its 15-minute food delivery service, quick and daily home-based meal offerings, as it shows an increased reliance on food delivery for consolidated profits. CEO Deepinder Goyal said in a letter to shareholders that the company has not seen a visible “path to profitability” for these services “without compromising the customer experience.”
(Disclaimer: recommendations, suggestions, opinions and opinions given by experts are unique. These do not represent views of the economic era.)
