🚉 Zomato and IRCTC: A Winning Combo?

Hey there,

Zomato, the name synonymous with food delivery in India, is making headlines again.

But this time, it's not just about food. They're venturing into new territories, and it's BIG! 🤔 

Zomato, post its IPO, has been on a mission. With profitability as their North Star, they've recently reported a profit of ₹2 crores.

But they're not stopping there. Now, they're venturing into intra-city parcel deliveries with Zomato Xtreme. Plus, their tie-up with IRCTC aims to serve pre-ordered meals to travelers.

So, what makes these moves significant for Zomato?

1. Leveraging the Massive Delivery Fleet: 
   Zomato Xtreme focuses on merchant parcel delivery. Using its vast delivery network of over 3 lakh partners and logistics know-how, Zomato plans to change the parcel delivery scene.
   
   This puts Zomato against players like Swiggy Genie, Dunzo, Ola Parcel, and others.

2. Gearing Up for E-commerce Logistics: 
   Zomato's entry into intra-city parcel delivery hints at its bigger plans for the e-commerce logistics sector.

   
   This step lets Zomato gauge the market, refine its services, and plan strategies to rival logistics giants like Delhivery.

3. Leveraging the Huge IRCTC Audience: 
   Every day, over 11 lakh tickets get booked on IRCTC. Zomato's partnership with IRCTC seeks to serve this large user base.

   
   They plan to deliver pre-ordered meals at key stations like New Delhi, Prayagraj, Kanpur, Lucknow, and Varanasi. Travelers can now enjoy their preferred dishes from top restaurants.

Why This Matters:

• Beyond Food: Zomato's expansion into parcel delivery hints at broader ambitions in the e-commerce logistics sector.
  

• A Boost in Shares: News of the IRCTC partnership saw Zomato's shares hitting a 52-week high of Rs 115. The market is clearly excited about Zomato's moves.

So, what's the big picture here?

Zomato is clearly diversifying and aiming to strengthen its position in the market. Their partnership with IRCTC and the launch of Zomato Xtreme could be game-changers.

But the real question is: Can Zomato sustain this growth and profitability amidst these bold ventures? That depends on counter moves from competitors, operational efficiency, future collaborations, and more.

✍️ Jargon of the day

Duopoly - A market structure where two companies own all or nearly all of the market for a given product or service.

In this context, Zomato and Swiggy have been the dominant players in India's food delivery scene.

Hope you enjoyed today's edition. Don't hesitate to share your thoughts with us.

Cheers,
Karthik