Zomato steers ahead in food delivery race. Is Swiggy far behind?

livemint.com:

₹259 crore in H1. This is a potential indication that Swiggy chose growth over profitability as it continued to be in the red at the Ebitda level. This is even after Swiggy said its food delivery business turned profitable in March.

On the other hand, Zomato’s food delivery business clocked adjusted Ebitda of ₹259 crore in H1. “Recent results suggest Swiggy’s gains in the food delivery vertical were partly attributable to Zomato’s diversion in focus towards profitability," said a report by JM Financial Institutional Securities dated 30 November. These trends may not be sustainable in the long run, as at some point in time Swiggy too aspires to become a listed entity, in which case it would have to demonstrate notable improvement in profitability, the broking firm noted.

In the quick-commerce segment, Zomato's Blinkit outperformed with GOV growth in H1, despite a 6% drop in store count. Swiggy's Instamart, meanwhile, saw slower growth despite a 19% jump in store count. All the aforementioned points suggest that Zomato is leading in execution now.