Excited that Swiggy turned its food delivery business profitable in March'23, while creating value for all our partners. Our teams have worked tirelessly to build long term value putting customers first each day. Read more HERE...https://t.co/yKAKP7muHD
— Sriharsha Majety (@harshamjty) May 18, 2023
In any industry, competition is an integral aspect as it drives the companies to go the extra mile in a bid to stay ahead.
Swiggy Turned Profitable
The same is represented by the two companies as competition does not always intensely translate into negativity as was seen on Thursday.
On 18 May, Swiggy co-founder and CEO Sriharsha Majety said in a Tweet that the online food delivery platform had endured a profitable period in March 2023.
Further adding that the key reason behind it was the tireless efforts of various teams in the company.
He said, “Excited that Swiggy turned its food delivery business profitable on March 23, while creating value for all our partners. Our teams have worked tirelessly to build long term value putting customers first each day,”.
In response to this Twitter post, Zomato founder and CEO Deepinder Goyal sent his congratulations and praise the efforts of the teams involved.
Goyal said, “Congratulations! Nicely done,”.
Moving ahead, Goyal had tweeted that 150 cakes per minute were being ordered on the platform on the occasion of Mother’s Day on Sunday and compared it to New Year’s Eve, in terms of order volumes.
Restructuring And Layoffs
Swiggy said that its food delivery business achieved profitability in March, less than nine years since its inception on Thursday.
It appears, Swiggy, which also offers grocery delivery services, had recorded a wider loss for the financial year 2021-22 on a surge in expenses.
Besides this the company has had multiple rounds of layoffs in the last six months, with plans to let go of employees reported in December and January.
Earlier Majety said that the peak of the company’s investments was behind them, having made “disproportionate” investments in its grocery delivery service Instamart, which competes with the Zomato-owned Blinkit and startup Zepto, in a blog post.
Further adding, “We’ve also made strong progress on the profitability of the business and we’re on track to hit contribution neutrality for this 3-year-old business in the next few weeks,”.
So far, Swiggy has a 45% market share in the food delivery market.
It acquired dining-out and restaurant tech platform Dineout in May last year to enter the reservations and dine-out discounts market.
