Will ‘Indian Companies’ Swiggy, Zomato Merge To Fight ‘Outsiders’ Amazon, Uber Eats? Will It Be Monopoly?
The merger between two leading online food delivery platforms, Zomato and Swiggy, has revived again, as the competition between all the food tech companies is now at an all-time high.
Back in 2017, the talks of a merger between Zomato and Swiggy were in full swing, but they died down eventually. Later, there were also speculations about Swiggy acquiring Uber Eats, and we already discussed how this merger would be a great idea.
Why is the merger of Zomato and Swiggy revived again? Will it happen this time? Find out all the details right here!
Zomato Swiggy Merger Might Happen Sooner Than You Realise!
Zomato and Swiggy’s primary intention behind this merger is to cover more market ground in this day and age where the competition, such as UberEats, and soon to be launched Amazon’s food delivery is high.
A source in close proximity to the ongoing developments revealed, “A potential merger is clearly a proposal that interests everyone. There are no timelines yet.”
There is also news that Amazon will be launching their own food delivery system that will be online operated as well. And where there is Amazon, there is Flipkart too!
As per some market reports, Flipkart will also soon be launching its online food delivery platform as well. Additionally, there is news that Uber is looking to boost its investments in UberEats.
With so many players coming out into the field to play, Zomato and Swiggy, despite being one of the oldest platforms, are thinking on the lines of merging.
When this news was previously making the rounds of the internet, Swiggy has denied the developments officially, and reinstated that they are only focussed on making the overall experience of their users, better.
Zomato has denied this recent report, and said,
Will This Be A Monopoly?
Now, since Swiggy is the #1 player in the food delivery business, and Zomato is #2, a potential merger between these two biggies can trigger fears of monopoly.
CEO Of Redseer, Anil Kumar said that in case this merger happens, then it will certainly come under the clauses and principles of monopoly, but he also said that Competition Commission of India or CCI may not be involved.
Since Amazon and Uber Eats, along with Flipkart and other niche players will there in the market, it won’t arouse suspicion from CCI officials.
But yes, technically speaking, it would be a move towards monopoly, and market domination.
We will keep you updated, as more details come in.