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SamCtrlPlusAltMan
•

OpenAI • 9m

Zomato Q3 FY24 Results: Growth Hits a Speed Bump 🚨📉 Zomato’s Q3 numbers are out, and the results paint a picture of slowing momentum in its food delivery business. 📊 Key Numbers: - Gross Order Value (GOV): Grew by just 2% QoQ to ₹7,318 crore, down from a 3% growth in the previous quarter. - Order Volumes: Flat, indicating demand stagnation. -Average Order Value (AOV): Increased marginally, likely due to Zomato Gold benefits. - Adjusted Revenue: Up by 9% QoQ, thanks to improved monetization. - Adjusted EBITDA: Food delivery turned profitable for the fourth consecutive quarter, driven by cost optimizations. 🔍 The Challenges: 1️⃣ Demand Slowdown: A muted 2% growth suggests that broad-based demand weakness is hitting both metros and non-metro markets. 2️⃣ Volume Stagnation: Flat order volumes signal that market saturation or cautious consumer spending might be at play. 3️⃣ Competitive Pressure: Swiggy’s aggressive offers and discounts are intensifying the battle for market share. The Bright Spots: - Profitability Focus: Food delivery EBITDA margins improved as Zomato cut delivery costs and optimized discounts. - Zomato Gold Revival: The program added 16 million subscribers, offering some hope for boosting AOVs in future quarters. - Hyperpure Growth: Zomato’s B2B arm Hyperpure grew 8% QoQ, diversifying its revenue streams. Is there A Bigger Picture? 🔮 Yes, with ₹7,318 crore GOV, Zomato remains a leader, but the 2% QoQ growth is far from the 10%+ it enjoyed in earlier phases. For sustained growth, Zomato must: - Expand beyond urban hubs to capture untapped markets. - Double down on new revenue streams like grocery and dining-out services. - Navigate a weaker macroeconomic environment, which is dampening discretionary spending. 💬 What’s your take? Is Zomato evolving enough to tackle these challenges, or is it stuck in a low-growth phase?

7 Replies

Replies (7)

Chintan Udani

I'm a pro medialist • 9m

Come to tier 3 cities, there are no orders at all and no orders means no market so on what basis they are running this thing

2 Replies

Mali Naresh

Hey I am on Medial • 9m

delivery partner ne offer aatali aape to nukasanj thay ne

Anonymous 3

Hey I am on Medial • 9m

Am I the only one concerned about the competitive moat here? Between Swiggy's aggressive pricing and Amazon's deep pockets with their Prime offering, Zomato's market position isn't as secure as bulls think. The Gold program is just defensive - they're basically paying to keep customers from switching. And let's not forget UberEats' fate in India. This industry isn't winner-take-all

Anonymous 2

Hey I am on Medial • 9m

The real concern isn't the 2% QoQ growth - it's the plateau in order volumes. Gold subscribers jumping to 16M sounds impressive until you realize it's basically buying growth through discounts. We tried similar strategies at Swiggy, and the customer loyalty vanishes the moment a better deal comes along. Blinkit's performance is the only thing keeping investor sentiment positive

Anonymous 1

Hey I am on Medial • 9m

these numbers aren't surprising. The 'growth at all costs' era is over. What everyone's missing is that flat order volumes with improved EBITDA is actually a GOOD thing. Zomato's finally prioritizing unit economics over vanity metrics. Remember when everyone said food delivery could never be profitable? Well, four quarters of positive EBITDA says otherwise.

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When you make an order in Zomato, the minimum order value is 1200 for free delivery, whereas it is just 200 in Blinkit Why? Also the delivery charge is 55 rupees for 4 kilometres in Zomato and 30 rupees in Blinkit(assuming the dark store is 4km from

1 Reply

Arcane

Hey, I'm on Medial • 1y

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