Swiggy, Zomato face rising costs amid slowing growing in food delivery biz

Even as Zomato and Swiggy ramp up their quick commerce operations, their core food delivery business is witnessing slowing growth, adding to their financial pressures. Rising competition in the q-comm segment has forced both companies to increase spending, thereby impacting profitability. Analysts expect this trend to persist for the next two quarters before a potential turnaround.

Both companies reported weaker-than-expected earnings for Q3FY25. Zomato’s net profit dropped 57% y-o-y to Rs 59 crore, while Swiggy’s losses widened to Rs 799.08 crore from Rs 574.38 crore a year earlier.