Vikash Singh

#Business | Super app Vs super brands: How Zomato’s differentiated app strategy compares with Swiggy’s integrated play 📲🛵🍴 Tushar Goenka writes more on this👇 https://lnkd.in/dUC73fNQ #SuperApp #Zomato #Swiggy #AppStrategy

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𝗦𝘄𝗶𝗴𝗴𝘆 𝗮𝗹𝗺𝗼𝘀𝘁 𝗱𝗲𝗹𝗶𝘃𝗲𝗿𝗲𝗱 𝗝𝘂𝗵𝗶 𝗖𝗵𝗮𝘄𝗹𝗮 𝗶𝗻 𝟭𝟬 𝗺𝗶𝗻𝘂𝘁𝗲𝘀 𝗮𝗹𝗼𝗻𝗴 𝘄𝗶𝘁𝗵 𝗵𝗲𝗿 𝘃𝗮𝗻𝗶𝘁𝘆 𝘃𝗮𝗻.... 𝗕𝗲𝗰𝗮𝘂𝘀𝗲 𝗼𝗳 𝗮 .... spelling mistake From delivering a groom instead of a broom, Swiggy is now ready to deliver Juhi Chawla instead of Chawal. Now as quick commerce gains ground, emerging direct-to-consumer (D2C) brands are betting big on digital channels to drive growth. New-age brands like BoAt have been expanding at a much faster pace than expected, driven by digital channels like quick-commerce. Quick commerce is now BoAt’s third largest channel for sales. Companies like fintech major Razorpay — in the realm of online payments — have been working with D2C brands. On the logistics side, a lot of brands are looking to open their own dark stores or partner with dark store operators to offer quick deliveries, which is also an unaddressed challenge. One such platform addressing these challenges is full-stack fulfilment startup Zippee. Founded in 2021, the company helps D2C brands with seamless, same-day deliveries by leveraging its network of 150 dark stores and last-mile delivery fleet. Quick commerce firms — like Zomato-owned Blinkit , Swiggy Instamart and Zepto, Flipkart Minutes — are now rapidly expanding their dark store footprints, or category expansion to include bigger-ticket items like electronics, fashion, beauty, and eyewear. The growth of D2C brands on these quick commerce channels has overtaken traditional e-commerce, and the medium is proving to be more profitable. Flushed with funds, the sector does not show any signs of slowing down anytime soon. How D2C brands capitalise on this opportunity, however, remains to be seen. 𝗣𝗦: By the way this ad is created by Moonshot and they have made a name with irreverent and sharp writing and execution in a cluttered ad space. -- #Amazon #Flipkart #Swiggy #Instamart #Blinkit #Zepto #Quickcommerce

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Zomato recently announced their acquisition of Paytm's entertainment ticketing business. How does one make such strategic choices? ❓ The first question in strategy is "where do we play?". ❇ In this case Zomato is exploring the space of "going-out" business. ❓The next question in strategy is "why do you want to play here?" ❇ The first reason is they want to expand their share of consumer wallet spend unlocking new growth avenues. ❇ Given they want to expand their share of wallet, there are many places they could get their share of wallet from - health & wellness, fuel, services & utilities etc. ❓Which then brings us to the third question in strategy "What are Zomato's strengths and where is the adjacency most natural?" ❇ There are multiple dimensions on which we can evaluate Zomato's strength. 👉 Zomato's core audience profile, the power users and therefore where do they most likely spend money. 👉 Zomato's infrastructure which consists of delivery fleet, network of restaurants, network of dark stores. 👉 Zomato's brand which stands for customer centricity, great user experience etc So given these aspects certain businesses lines don't fit in naturally, say for e.g fuel, education etc. It narrows down to a smaller subset - shopping, travel, movies&events, health & wellness, medicines etc. Given these choices, Zomato could have considered say medicine delivery, which leverages its infrastructure, warehouses etc with a deeper integrated play. Instead I hypothesise Zomato's lens for picking new playgrounds is focussing on what their core TG aspires to spend on and placing a bet on the growing population size of such a TG which is also more premium. That narrows down the focus to categories like shopping, travel, movies etc. ❓Which brings us to the next question, "What is the sequence of prioritisation & how to win?" Here looking at some macro trends help. ❇ According to a razorpay report on how India spends its money in FY23-24, AirTravel saw a 2.4x spike whereas movie tickets saw a 2.7x spike. For the sake of simplicity let's assume a choice was to be made between AirTravel and Movie Tickets ❇ Dimensions of evaluation can be frequency of event, margin structures, complexity of supply, competitive landscape et all. ❇ Airtravel could be anywhere between once a quarter to once a year. Whereas movies could be anywhere between once a week to once a month. ❇ Airtravel has more competition from makemytrip, cleartrip, ease mytrip et all whilst in the movie ticketing space BookMyShow has a ~55% marketshare and PayTM insider has ~45% marketshare. Purely from a frequency stand point, movie & entertainment tickets make for a better bet. Now Zomato has the option to either build this by themselves or buy. Content continued in comments section.... #strategy #business #productmanagement

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Paytm Makes a Strategic Move: Sells Ticketing Business to Zomato In a significant development, Paytm has decided to divest its entertainment ticketing business to Zomato. This strategic move will allow Paytm to focus on its core strengths in digital payments and financial services, while Zomato can expand its offerings and tap into a new market. Key Points of Paytm's Sale of Ticketing Business to Zomato ➡ Strategic Focus for Paytm: 1️⃣ Core Business: Paytm aims to concentrate on its core strengths in digital payments and financial services. This will allow them to allocate more resources to innovation and growth in these areas. 2️⃣ Portfolio Optimization: By selling the ticketing business, Paytm can streamline its operations and enhance shareholder value. ➡ Expansion for Zomato: 1️⃣ New Market Entry: Zomato aims to expand its offerings beyond food delivery and enter the entertainment ticketing market. 2️⃣ Synergy with Existing Services: The acquisition complements Zomato's existing services, offering a more comprehensive experience to users. For instance, they can bundle food delivery with event tickets. ➡ Details of the Deal: 1️⃣ Valuation: The deal is valued at INR 2,048 crore. 2️⃣ Employee Transfer: Nearly 280 employees from Paytm's ticketing business will join Zomato. 3️⃣ Timeline: Both companies expect to close the transaction within the current quarter (Q2 FY25). ➡ Implications for the Indian Digital Economy: 1️⃣ Consolidation: This deal highlights the ongoing consolidation in the Indian digital economy as companies seek to strengthen their positions and capitalize on growth opportunities. 2️⃣ Market Dynamics: The acquisition could potentially change the dynamics of the entertainment ticketing market in India. #paytm #zomato #news #updates #business #businessstrategy #digitaleconomy #aquisition

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