Can Swiggy’s Instamart spice it up in quick commerce?
For the September quarter, both companies saw about 5% and 24% growth in their respective gross order values of the food delivery and quick-commerce businesses. In Q2FY25, Swiggy’s GOV was ₹10,600 crore against ₹15,800 crore of Zomato in both the main businesses, i.e., food delivery and quick commerce together. Its adjusted Ebitda in Q2FY25 in the two businesses was ₹333 crore, whereas Swiggy’s was negative at ₹247 crore, mainly due to losses in its quick-commerce arm Instamart. The management said in the post-earnings call that it expects further improvement in revenue or take-rate as a percentage of GOV for food delivery business by 150 basis points in the medium term from 25.1% in Q2FY25. Interestingly, higher revenue as a percentage of GOV has not helped Swiggy make a relatively higher contribution margin versus Zomato in Q2FY25.
JPMorgan says Swiggy an ‘underappreciated winner’, sees 25% upside in stock price
Swiggy and Zomato shares hit all-time high today. Can they deliver more returns?
Discover Related
Zomato’s growth path: Where will the stock be in 3 years?
For online brands, opportunities in offline, quick commerce, and Thrasio models
Zomato, Swiggy shares crack up to 5% after BofA downgrades stocks, cuts target prices
Why are Zomato, Swiggy shares falling today? Check key reasons, price targets
Retailers report 52% drop in essential goods sales due to quick commerce
What is behind the rise of quick commerce? | Explained
Domino's India is delivering pizzas in just 10 minutes now. Key details inside
Delhivery expects rapid commerce business to generate ₹80-100 crore by fiscal end
Bikaji Foods shares plunge around 13% following weak Q3 results; profit down 39%
Zomato To Become 'Eternal'? Here's Why The Move Only Matters To Traders
Swiggy share price falls over 4% ahead of Q3 results today; Should you buy or sell?
Cipla Q3 Results: Net profit jumps 48% YoY to ₹1,571 crore; revenue improves 8%