Report claims Swiggy-Zomato to be in talks for a merger, Zomato denies
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Report claims Swiggy-Zomato to be in talks for a merger, Zomato denies

Zomato-Swiggy
Saurav Bhagat
Written by Saurav Bhagat
[email protected] | Delhi | Published on: November-19-2019 08:59 PM

According to reports by Firstpost, the merger between two leading online food delivery platforms, Zomato and Swiggy, has resumed again as the market is now at an all-time high among all food tech companies. 

Back in 2017, the Zomato-Swiggy merger negotiations were in full swing, but ultimately they died down. Earlier, there were also speculations about the purchase of Uber Eats by Swiggy, and we discussed how this merger would be a great idea.

Why is the Zomato and Swiggy merger rekindled? Is that going to happen this time? 

The primary intention behind this merger of Zomato and Swiggy is to cover more competitive territory in this day and age where rivalry, including UberEats, is strong and Amazon’s food delivery will soon be introduced. 

Amazon is set to give a tough competition to the likes of Swiggy Zomato

Amazon is set to give a tough competition to the likes of Swiggy Zomato

A source in close proximity to the current developments said, “There is obviously a plan for a possible merger that concerns everybody. There are no timelines yet.” There’s also news that Amazon will launch its own online food delivery system. And there’s also Flipkart where there’s Amazon!

Flipkart will also be releasing its online food delivery platform early, according to some industry studies. There’s also speculation that Uber is looking to boost UberEats ‘ investments. 

Is the online food delivery heading towards MONOPOLY?

Zomato-Swiggy-Delivery-boys

(image for representational purpose only)

With so many players coming out to play, Zomato and Swiggy are talking about the lines of merging, despite being one of the oldest sites. 

When this news made the internet rounds earlier, Swiggy has officially denied the developments and reiterated that they are only focused on improving their users’ overall experience.

“We have an immense emphasis on our market metrics and have seen great success in our journey towards profitability. We are not in negotiations with Swiggy for a merger or acquisition,” a company spokesperson said in a statement shared with IANS.

A First Post article, citing sources, stated that the merger talks between the two food delivery companies have resumed as the market is expected to rise with Amazon’s recent expansion into online food delivery business in the country and Uber Eats flexing muscles for an aggressive expansion in the world.    Now that Swiggy is the #1 player in the food delivery industry and Zomato is #2, a possible merger between these two biggies will trigger fears of a monopoly.

Last week, Uber Eats told IANS that it will not only remain in India’s growing food tech industry but will also build strong ties with restaurant partners to provide its customers with a seamless delivery experience.

The food tech industry in India will rise from $4 billion to $15 billion over the next three years.  If it occurs, the Zomato-Swiggy merger will come under immediate review from India’s Competition Commission (CCI). Competition is really important whether it be in the parliament between ruling and opposition parties or it be between two food delivery giants, common people get benefitted anyhow!

About the author

Saurav Bhagat

Saurav Bhagat

Saurav is inclined towards brands and brand story-telling from the past half a decade. His interest in startups has made him an immense member of the NBB Family from its very early days.
Saurav loves Chai and writes his day to day experiences on Quora too.
He believes in the power of storytelling for a Brand and also in general.
He often says- "Stories are powerful enough to build and erase empires and generations!"

09654178839 | A-73, Hackerspace, Noida sector- 2 Noida UP 201301

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