The Daily Brief Food Wars are Far from Over
10 snips
May 14, 2025 The podcast dives into the competitive dynamics between India's food delivery giants, Zomato and Swiggy, highlighting their contrasting fortunes in quick commerce. It then shifts focus to the rapid rise of data centers, spotlighting a monumental $500 billion investment that underscores their vital role in our digital age. India's potential to become a key player in AI infrastructure is also explored, addressing the challenges and opportunities that lie ahead as demand for computing power surges.
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Food Delivery Profitability vs Quick Commerce Losses
- Food delivery remains profitable for Swiggy and Zomato but growth is slowing down.
- The main losses now come from aggressive expansion into quick commerce or instant grocery delivery.
Speed Boosts Customer Loyalty
- Speed is boosting customer acquisition and retention in delivery services.
- Customers ordering 10-minute delivery show higher loyalty and frequency on Swiggy's platform.
Quick Commerce Delays Profitability
- Quick commerce growth comes with steep losses due to infrastructure and competition costs.
- Swiggy delayed profitability for grocery delivery from late 2025 to mid-2026 due to ongoing cash burn.