As merger reports of Bengaluru-based Swiggy and Gurugram-based Zomato — two biggest players in the burgeoning online food delivery market — resurfaced, Deepinder Goyal-led Zomato on Tuesday refuted reports, saying they are not in talks with anyone.
“We have tremendous focus on our business metrics and have seen great success in our goal towards profitability. We are not in talks with Swiggy for a merger or acquisition,” a company spokesperson said in a statement shared with IANS.
A First Post report, citing sources, mentioned that the merger talks between the two food delivery platforms have revived as the competition is set to grow with Amazon’s reported expansion into online food delivery business in the country and Uber Eats flexing muscles for an aggressive expansion in the country.
In 2017, media reports had surfaced that the two players were in merger talks.
The Zomato spokesperson further said that the latest “speculation is absolutely untrue”. Swiggy, however, refused to comment on the report.
Amazon is gearing up to launch its own online food delivery division to compete with food delivery apps in the Indian market.
The retail behemoth already has a robust existing workforce in the country that can be utilized along with hiring more delivery partners to beat the competition.
According to Prabhu Ram, Head-Industry Intelligence Group (IIG), CMR, the food delivery business is no longer a two-horse race and is increasingly witnessing cut-throat competition.
“With the entry of new players, including the likes of Amazon and Uber Eats, a potential merger of Zomato and Swiggy would make sense,” Ram told IANS.