Swiggy Re-evaluates Rapido Investment Amidst Competitive Challenges
Swiggy is reassessing its investment in Rapido, which plans to enter the food delivery market. This move raises potential conflicts of interest. Despite successful value creation with its current ventures, Swiggy is considering its future strategy amidst intensified market competition and financial losses.
- Country:
- India
Swiggy, the major player in food delivery, is re-evaluating its investment in Rapido. The potential conflict arises as Rapido, historically a bike-taxi platform, is planning to venture into the food delivery arena.
Swiggy, holding a significant minority stake of approximately 12% in Rapido, acknowledges the ride-hailing company's growth and success. However, with Rapido's shift towards food delivery, Swiggy sees a possible conflict of interest, prompting a reassessment of their investment strategy. Meanwhile, Swiggy's financial disclosures reveal an expanding loss of Rs 1,197 crore for the quarter ending June 30, compared to Rs 611 crore in the same quarter last year.
The food delivery sector continues to swell with new participants exploring the market. Swiggy emphasizes its commitment to maintaining competitive advantage through innovation, consumer understanding, and economic sustainability, as it seeks new growth opportunities within high-frequency consumer categories.
(With inputs from agencies.)
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