Diversification In The Times Of Covid19: Zomato and Swiggy

Due to the novel coronavirus, there a huge slowdown in terms of the food delivery companies such as Zomato and Swiggy, and therefore the idea of diversification and specializing in aspects apart from purely focusing on food delivery is an aspect both the companies are considering. 

Both of them are thinking of expanding outside the present platforms they hold, sources have said. These companies are said to already be in conversation with several states, with respect to delivering liquor from authorized outlets to the homes of people. This news comes alongside the fact that both of these companies have increased their delivery of groceries and essential products due to the ongoing lockdown. 

According to several analysts, food delivery services have had a 70% reduction in the food ordered, and these charts may not drastically go up before the end of this year. As people try to adjust to these new conditions, it is predicted that these services will take much longer to start functioning properly in smaller cities and towns. 

Zomato has started to make contacts with merchants for cashless and pre-paid services with work on a last-mile basis. It is said that even Swiggy is thinking on similar lines, by initiating a home delivery service within a radius of 8-10 miles. Both the companies may not be considering launching bike/taxi services in upcoming times, however, this idea may be once again considered next year.