When Swiggy came around, Zomato had not thought of the food ordering app as much of a threat to its own existence considering that it had occupied the space of a ‘restaurant discovery’ while Swiggy is into ordering food. However, judging by the tilting landscape of both restaurant discovery and ordering business Zomato too started rolled out feature through which users too now order through it. Currently, Zomato manages 3.3 million transactions, while Swiggy does 4-4.5 million a month. Zomato’s margin is higher than that of Swiggy.
Now, as per the latest media report, both Zomato is in talks with Swiggy and exploring the possibility of combining their businesses together. If the talks go through, either they would merge, or Zomato would acquire Swiggy. Apparently, if a merger between Swiggy and Zomato happens, it would be one of the biggest consolidations as yet in Indian Internet industry.
Though a spokesperson from Swiggy has rubbished all speculations about the merger and said, “has a razor-sharp focus in delivering a superior customer experience as we continue to grow as India's largest food ordering and delivery company. We would not like to comment on baseless speculations such as this."
However, as reported, the talks are unlikely to progress as the companies haven’t agreed on any terms and conditions.
In September, the media had reported that Zomato was in advanced talks with Alibaba and Ant Financial. The deal could have seen Zomato being valued at $1.1 billion.