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Food and grocery delivery behemoth <keyword id="6358977" type="General" weightage="20" keywordseo="Swiggy" source="Orion">Swiggy</keyword> is on a roll, pushing out multiple new services simultaneously, ahead of the festive season, and its much-touted Rs 11,664 crore IPO. Experts anticipate the IPO to hit the bourses in the upcoming months. Earlier last week, the company's shareholders had approved of raising the fresh issue component of the IPO, from Rs 3,750 crore previously to Rs 5,000 crore. This will allow Swiggy to add an extra Rs 1,250 crores to its coffers for future growth. The remaining Rs 6,664 crore will be an OFS (offer for sale), largely paving a way for Swiggy's old investors to exit. In the buildup to its IPO, the delivery giant is dialing up the competitive fever big time with rival <keyword id="19901323" type="General" weightage="20" keywordseo="Zomato" source="keywords" meta.keywordsubtype="org" meta.entityname="Zomato" meta.hostid="261" meta.entityid="Zomato">Zomato</keyword>, which went public in 2021. Swiggy recently launched <keyword id="23440051" type="General" weightage="20" keywordseo="XL-Fleet" source="keywords">XL Fleet</keyword> for large-scale <keyword id="20299302" type="General" weightage="20" keywordseo="food-delivery" source="keywords">food delivery</keyword> and Bolt, which is an <keyword id="23461052" type="General" weightage="20" keywordseo="AI-powered-logistics" source="keywords">AI-powered logistics</keyword> system. Per some media reports, the company is also launching an invite-only concierge membership program called the "Rare Club", which will have an annual fee of up to Rs 50,000. <h2>Who doesn't love a little pettiness? </h2>But that's not it. In the time being, Swiggy is also aggressively looking for ways to gain maximum public attention, one of which is by sponsoring the fourth season of the popular entrepreneurial reality show <keyword id="11924074" type="General" weightage="20" keywordseo="shark-tank-india" source="Orion">Shark Tank India</keyword>. But here's the catch-a key condition of this deal is to not bring back Zomato CEO <keyword id="19901325" type="General" weightage="20" keywordseo="deepinder-goyal" source="keywords">Deepinder Goyal</keyword> as a shark. Media reports suggest that Swiggy is set to close on a massive Rs 40-60 crore sponsorship deal with the show. But in a seemingly low-ball move, Swiggy has blocked the return of Zomato CEO Deepinder Goyal as one of the investors on the show. Goyal had made his debut on the third season of the show, and was looking to make a comeback alongside long-time regulars such as Anupam Mittal, Aman Gupta, Namita Thapar and Peyush Bansal. <h2>Bolting ahead with XL</h2>In a move that clearly underlines its ambitious expansion plans, Swiggy also recently announced the launch of its new XL Fleet service, which will look to cater exclusively to bulk orders and large-scale food deliveries. Per Swiggy's co-founder Nandan Reddy, XL is a natural evolution of Swiggy's services. As it is, a recent report by Bain and Company highlighted that India's food services market is set to double to a massive Rs 9 trillion by 2030, surging up significantly from its current standing of Rs 5.5 trillion. Not just that, the customer base is also set to expand from 320-340 million as of 2023 to 430-450 million by the end of the decade. Earlier this year, Zomato had also stepped in this segment by launching its large-order electric fleet, which could serve orders for a gathering of up to 50 people. Alongside this, Swiggy has unveiled Bolt, which is an AI-powered logistics system specifically designed to optimize delivery routes, predict demand patterns, and improve overall operational efficiency. The aim is to bring down on delivery time and costs, giving Swiggy a massive competitive edge in the growing food and quick delivery market. With this feature, Swiggy claims that users can get certain meals such as burgers, <h2>Challenges Await </h2>As of FY24, Swiggy's operating revenue stood at ₹112.5 billion, a 36% jump from the previous year. The company also managed to reduce its net losses by as much as 44% to ₹23.5 billion. While these may come across as positive signs, which are also pushing the company's unlisted shares to new heights, Swiggy significantly lags behind Zomato in both food delivery and quick commerce segment. Consider this. Per Morgan Stanely, as of FY24, Swiggy's GOV (gross order value) at Rs 24,700 crore, was far lower than Zomato's Rs 32,200 crore. Swiggy's GOV and AOV grew at a CAGR of 15.5% and 2.5% respectively, between FY22-24. In contrast, Zomato's GOV and AOV registered a CAGR of 23% and 3.7%, respectively. At 12.7 million, Swiggy's MTU (monthly transacting users) for FY24 were also a far cry behind Zomato's 18.4 million. Even when it comes to average order value (AOV), Swiggy's Instamart lags behind Zomato's Blinkit. This is also why analysts believe that despite Swiggy narrowing the gap on most key metrics like AOV, GOV and more, the company's share will command a lower valuation than that of its rival Zomato.

Ahead of much awaited IPO, what is Swiggy upto? Launching XL Fleet, premium membership and kicking out Zomato CEO

<ul><li><keyword id="19901323" type="General" weightage="20" keywordseo="Zomato" source="keywords" meta.keywordsubtype="org" meta.entityname="Zomato" meta.hostid="261" meta.entityid="Zomato">Zomato</keyword> and <keyword id="19896956" type="General" weightage="20" keywordseo="Swiggy" source="keywords" meta.keywordsubtype="org" meta.entityname="Swiggy" meta.hostid="261" meta.entityid="Swiggy">Swiggy</keyword> have increased the <keyword id="20299300" type="General" weightage="100" keywordseo="platform-fee" source="keywords">platform fee</keyword> charged to users by 20%.</li><li>With this increase, the platform fee has increased from ₹5 to ₹6.</li><li>The platform fee charged is different from GST, delivery charges and restaurant charges applied on the platforms.</li></ul> Your food deliveries will get costlier as Zomato and Swiggy have started increasing the platform fee by 20%. The <keyword id="19922227" type="General" weightage="20" keywordseo="food-delivery-platforms" source="keywords">food delivery platforms</keyword> will now charge users ₹6 per order. Food delivery platforms Zomato and Swiggy introduced platform fees in 2023, which began at ₹2 per order. This was then increased to ₹3 and then to ₹5 in April 2024. <h2>Platform fee increases threefold</h2>In yet another increase, the two food delivery platforms have increased the platform fee to ₹6. This means that the platform fee has increased threefold in a year. The platform fee is different from other charges levied on orders such as GST, delivery charges and restaurant charges. Customers are required to pay this charge irrespective of any membership such as<a href="https://www.businessinsider.in/business/news/swiggy-cracks-down-on-password-sharing-allows-users-to-use-same-account-on-only-two-devices/articleshow/97548345.cms"> Swiggy One</a> or<a href="https://www.businessinsider.in/tech/apps/news/zomato-gold-re-launched-with-free-deliveries-vip-access-up-to-40-discount-on-dining-and-more/articleshow/97273088.cms"> Zomato Gold</a>. The increased platform fee is currently being tested in selected cities such as Delhi and Bengaluru. It is expected to be rolled out in a phased manner across all major cities. While an increase of ₹1 may seem insignificant to most people who place orders online, it adds up to a good source of revenue for Swiggy and Zomato which process lakhs of orders every day. Platforms such as Zomato and Swiggy aim to earn ₹1.25 to ₹1.5 crore per day through platform fees. <h2>Customers not happy</h2>Customers have not reacted positively to this news. Posts on platforms like X have criticised this move, calling for users to directly order from restaurants. <div type="twitter" handle="trippyankit" handlename="trippyankit" favoritecount="0" retweetcount="0" id="1812756936669921328"></div> The user highlighted that food prices are already comparatively higher on food delivery platforms. The difference in price is due to the commission paid by restaurants to Swiggy and Zomato, which usually ranges between 20 to 30%. <h2> Zomato share price surges</h2>Zomato’s share price increased by 3% to close at ₹229.10 on Monday after the company increased the platform fee. The company’s share price has increased by over 70% in the last six months, helping the company’s chief executive officer (CEO)<a href="https://www.businessinsider.in/stock-market/news/zomatos-deepinder-goyal-joins-elite-list-of-indian-billionaires/articleshow/111747793.cms"> Deepinder Goyal</a> become a billionaire. SEE ALSO: <a href="https://www.businessinsider.in/tech/mobile/webstories/iqoo-z9-lite-5g-with-90hz-display-5000mah-battery-launched-starting-at-10499/slidelist/111754545.cms">iQOO Z9 Lite 5G with 90Hz display, 5000mAh battery launched starting at ₹10,499</a> <a href="https://www.businessinsider.in/tech/mobile/news/global-smartphone-shipments-grow-6-5-in-q2-2024-xiaomi-records-highest-growth/articleshow/111749023.cms">Global smartphone shipments grow 6.5% in Q2 2024, Xiaomi records highest growth</a> <a href="https://www.businessinsider.in/stock-market/news/ipos-this-week-four-ipos-to-hit-the-street-this-week/articleshow/111745283.cms">IPOs this week – four IPOs to hit the street this week</a>

Zomato and Swiggy increase platform fee by 20% – food deliveries to get costlier

<ul class="summary-list"><li>Food delivery costs have gone up for customers over the last few years.</li><li>But <a target="_blank" href="https://www.businessinsider.com/golden-age-gig-work-instacart-doordash-delivery-jobs-over-2023-12">gig worker earnings</a> have fallen from their early-pandemic highs. </li></ul>There's a growing contradiction behind that burrito you just had delivered for dinner.Chances are, you paid a premium — <a target="_blank" href="https://www.businessinsider.com/fast-food-delivery-apps-price-markups-2023-9">over one-third more</a> than if you had walked into the restaurant for takeout — just to have someone drop it off at your door.But at the same time, the gig worker who made the delivery for <a target="_blank" href="https://www.businessinsider.com/how-delivery-driver-gets-big-tips-declines-orders-wealthy-areas-2023-4">DoorDash</a>, Uber Eats, or a similar service may be getting paid less than they would have a few years ago.Making deliveries used to be more lucrative — during the pandemic, for instance — but many <a target="_blank" href="https://www.businessinsider.com/uber-lyft-doordash-drivers-earn-below-minimum-wage-tips-study-2024-5">gig workers now make less than minimum wage.</a> That's driving some to abandon gig work — a possible problem for companies who need delivery drivers to keep clients served, and in a timely fashion.And while some cities have imposed minimum-wage laws for gig workers, that's also a problem for companies, they say, claiming it's leading to higher costs for consumers.The increasing tension points to a broader question in the delivery world that's become clearer than ever this year: Can the delivery business be profitable for the companies, affordable for consumers, and pay workers a living wage at the same time?<h2 id="d8e07f1e-6d60-4ded-8c3e-a6589f2d0624">"I saw the writing on the wall"</h2>One Instacart worker in California said he made delivering for the app his full-time source of income in 2020. But starting early in 2023, his daily earnings started falling.That's when he first considered that his work for Instacart wouldn't last forever. "I saw the writing on the wall," he told Business Insider. He asked not to be named in this article, citing fear of Instacart deactivating his account.An Instacart spokesperson said the company's force of gig delivery workers "has remained steady" at about 600,000 in North America and that Instacart has made no changes to what it pays in California.They also said workers who want to earn more through the app can sign up for different kinds of deliveries, such as prescriptions, alcohol, and heavy items.That's not enough for the worker."I really feel that the gig economy, it's going to be there for a long while," he said. "But as for myself, it's just no longer really worth it." Now, he's looking for a regular full-time remote job.<h2 id="096caf18-0f01-4b49-951a-3af1cb989af8">New laws aim to raise gig worker pay</h2>Cities like New York and Seattle are trying to solve the pay problem with new regulations mandating how much delivery workers earn.<a target="_blank" href="https://www.businessinsider.com/seattle-gig-workers-could-get-pay-cut-under-payup-replacement-2024-5">In Seattle, a law that took effect in January</a> aims to pay delivery workers for services, including Instacart and DoorDash, a rate equivalent to the city's $19.97-an-hour minimum wage for W-2 employees, for example.One worker who has delivered food for DoorDash in Seattle since the law entered into force told BI that he's seen his per-hour earnings increase since January. He asked not to be named in this story for fear of retaliation at work, but BI has verified his identity and work."It's more steady," the worker told BI. "Before, you'd go out and make $14 or $16 per hour." Now, his income before taxes and his costs, like vehicle upkeep, are as high as $25 per hour. Unlike employees, contractor delivery workers have to cover many of their own costs.But the delivery companies are <a target="_blank" href="https://www.businessinsider.com/instacart-doordash-pushing-back-against-seattle-gig-worker-laws-payup-2024-4">campaigning against Seattle's law</a>. They've also added fees to orders in response to it.A DoorDash spokesperson told BI that the law has led to higher costs for customers and longer wait times to claim orders for its couriers. "No one wins under this law, including delivery workers," the spokesperson said.<h2 id="2efd2903-2a29-4844-b0c8-1b90a624d127">Gig workers have had to get choosier about jobs</h2>The dilemma isn't unique to the food delivery world.Plenty of startups have attracted early customers by offering their products or services to customers by taking a huge loss — consider all those flyers from meal kit companies like HelloFresh that used to show up in your mailbox offering a dozen or more free dinners for signing up.The strategy: To get you, the customer, so used to what's being offered that you'll keep paying for it — even when prices start going up.Timothy Turer, who has worked in rideshare and gig delivery in Florida since 2016, remembers the dirt-cheap fares that Uber and Lyft offered riders early on."I had people jump in a car and being like 'You won't believe how much I paid for this ride: $5!'" he told BI. "I'm getting paid $15, so I don't know what you think you're doing, but they're just addicting you to the service."Today, fares are higher for customers, but Turer said he hasn't seen the benefits. Consequently, he said that he's been more strategic about which rides he takes. He sticks mostly to trips that customers schedule in advance, such as early-morning journeys to the airport, which tend to be more lucrative for him.Waiting around busy parts of town to pick up rides on the spot no longer makes financial sense, Turer said. "I don't want to do that anymore," he said. "The scheduled rides work very well."<h2 id="f56bd1ab-f924-4e72-a677-b4fc5129f6b9">Some workers figure it's better to leave the business</h2>Companies are facing a balancing act between paying workers enough to keep them working, turning a profit, and not hiking prices for customers so much that it turns them off.It's tough.In February, <a target="_blank" class="" href="https://www.businessinsider.com/uber-drivers-feeling-squeezed-pay-after-company-hits-profit-2024-2">Uber posted its first annual profit</a> — but 15 years after its founding.And rival DoorDash has yet to hit the same milestone despite narrowing losses and growing revenue. Meantime, Instacart, which said it was profitable in 2022 ahead of its IPO, swung to a loss in 2023.Paying delivery workers is one of the biggest costs for the companies. But with many telling BI that the job has gotten less profitable for them lately, or <a target="_blank" class="" href="https://www.businessinsider.com/i-started-delivery-business-after-working-for-doordash-amazon-flex-2024-3">setting up their own delivery services, </a>or even <a target="_blank" class="" href="https://www.businessinsider.com/doordash-drivers-want-extra-tips-before-delivery-customers-complain-2023-5">begging food delivery customers</a> for better tips, it's clear cracks are starting to show in the well-polished delivery system.Are you a gig worker and have a story idea to share? Reach out to this reporter at <a target="_blank" href="mailto:abitter@businessinsider.com">abitter@businessinsider.com</a>

The delivery reckoning is here

<keyword id="19896956" type="General" weightage="100" keywordseo="Swiggy" source="keywords" meta.keywordsubtype="org" meta.entityname="Swiggy" meta.hostid="261" meta.entityid="Swiggy">Swiggy</keyword>’s stock market debut has been awaited for a long time and recent reports suggest that the Bengaluru-based company is expected to raise more than USD 1 billion through its IPO. Reports also suggest that the company might soon file its draft red herring prospectus (DRHP) with the <keyword id="19901204" type="General" weightage="20" keywordseo="Securities-and-Exchange-Board-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Securities and Exchange Board of India" meta.hostid="261" meta.entityid="Securities and Exchange Board of India">Securities and Exchange Board of India</keyword> (Sebi), potentially launching its IPO as early as this week. Meanwhile, Swiggy has been busy implementing several notable changes across its operations, probably to gear up for its IPO. From changing leadership to expanding Instamart’s reach, let us take a look some changes implemented by Swiggy in the last few months. <h2>Leadership overhaul </h2> One of the most significant shifts has been at <keyword id="19939135" type="General" weightage="20" keywordseo="Swiggy-Instamart" source="keywords">Swiggy Instamart</keyword>, the company's quick commerce arm. Swiggy appointed <keyword id="22954620" type="General" weightage="20" keywordseo="Amitesh-Jha" source="keywords">Amitesh Jha</keyword>, a seasoned executive from Flipkart, as the new CEO of Instamart last month. This move marks the third leadership change for Instamart in just 18 months. As part of this transition, Phani Kishan, the outgoing head of Instamart, was announced to take on a broader role within Swiggy, overseeing the Central Growth unit and working closely with co-founder Sriharsha Majety on new initiatives. <h2>Expanding Instamart’s reach </h2> Swiggy Instamart has also been on an expansion spree, recently launching in 11 new cities across India, including Rajkot, Thrissur, and Kanpur. This expansion marks a strategic push into Tier 2 and 3 cities, broadening its customer base beyond metropolitan areas. The platform, which offers delivery of daily essentials in just 10 minutes, also said in a press release that it has seen encouraging results in these new locations. In Mangalore, for example, a new store achieved 1,000 orders in a single day faster than many larger cities. This localised approach, featuring partnerships with regional vendors, has enhanced Instamart’s appeal and efficiency in serving diverse customer needs. "Users across India already recognise the convenience Swiggy provides," Amitesh Jha said in a press release and added, "The enthusiastic demand from smaller towns and cities has been incredibly encouraging. Our expansion into these new locations marks a significant milestone, allowing even more people to experience the ease of having thousands of products—from everyday essentials to electronics and toys—delivered in just 10 minutes from both national and local brands." <h2>Changes in management </h2> Swiggy has also made notable changes in its management team recently. Himavant Srikrishna Kurnala, previously with Reliance Retail’s JioMart, was appointed as the head of product for Instamart earlier this year. His appointment is part of a broader strategy to strengthen the team ahead of the IPO. Other key hires include Mayank Rajvaidya, who has been named vice president of fruits and vegetables, and Manu Sasidharan, who joined as associate vice president of the FMCG category. These additions come in the wake of several high-profile departures from the company, signalling a recalibration of Swiggy’s leadership structure. <h2>Policy changes for restaurant partners </h2> Swiggy’s founder recently revealed that the decade-old startup partners with over 3 lakh restaurants today. And thus, when a policy change decision was announced that impacted restaurant partners directly, it made headlines. In a move to standardise its service fees, Swiggy extended its gross value service fee policy to restaurants in non-metro areas. This change, effective from August 14, involves charging a service fee on the gross value of orders, including GST and packaging fees. This adjustment was expected to lead to an increased commission for restaurant partners in smaller towns and cities. The policy shift aligns with the fees already applicable to restaurants in larger urban areas and reflects Swiggy’s efforts to streamline its revenue model. <h2>Converting into a public limited company </h2> To facilitate its upcoming IPO, Swiggy also transitioned from a private limited company to a public limited company. Earlier this year, Swiggy updated its name to <keyword id="23191546" type="General" weightage="20" keywordseo="swiggy-limited" source="keywords">Swiggy Limited</keyword>, removing the term 'Private' to better align with its public offering aspirations. This strategic move was intended to prepare the company for public investment and enhance its market presence. As Swiggy readies itself for its IPO, these changes underscore the company's commitment to growth, innovation, and adaptability. The upcoming listing marks a significant milestone in Swiggy’s journey, reflecting its ongoing evolution and strategic realignment in the competitive food delivery landscape.

Swiggy is preparing for its IPO soon: A look at some recent changes in the company

<ul class="summary-list"><li>Delivery apps like Instacart and Walmart Spark often 'batch' orders together.</li><li>But gig workers say it cuts into their income since they get paid less for each order delivered.</li></ul>Last summer, some gig workers who delivered grocery orders for Walmart noticed a change: Instead of just delivering one order, they had to deliver two or three at once."Three grocery orders can also be delivered during each trip by using your front seat, back seat, and trunk space to keep these orders separate," Walmart told workers for its Spark service at the time in an email. The advice is now on the company's <a target="_blank" href="https://drive4spark-walmart.helpdocs.io/l/en/article/pmpzf3r7s7-understanding-offer-types">website for Spark drivers.</a>The practice of bundling orders isn't new. Other apps, including Instacart and DoorDash, have been doing it for years.But four independent contractors who make the deliveries told Business Insider the practice usually leaves them doing more work for less money, further eroding their earning potential on gig-work apps. The workers declined to have their names used, but BI verified their identities.Many <a target="_blank" href="https://www.businessinsider.com/golden-age-gig-work-instacart-doordash-delivery-jobs-over-2023-12">gig workers say that their earnings have fallen</a> over the past year because of lower pay and greater competition among drivers for orders.<h2>Drivers have a choice, companies say</h2>Batches have been part of Instacart's strategy for "several years," a company spokesperson told BI."Batches that include orders from multiple stores make up a very low percentage of batches on our platform," an Instacart spokesperson said. "As with any batch, shoppers are never required to select multi-order or multi-store batches."Batches with multiple orders are "compensated accordingly and reflect the effort it will take to fulfill those batches," the spokesperson added."Batching is a win for drivers and our customers," a Walmart spokesperson said. "Drivers often prefer offers for batched deliveries and receive higher average earnings per trip while spending less time per delivery. Batching is also a way to serve more customers more efficiently and accurately.""We're proud to offer multiple types of deliveries, and drivers can choose which offers to accept based on their preferences," the spokesperson said.A DoorDash spokesperson did not provide comment for this article.<h2>Drivers find angry customers, lower ratings, lost tips</h2>The experience can be frustrating for customers. Customers can track where their driver is using the Walmart app, but they have no clue when their driver has more than one order to deliver, one Spark driver in Alabama told BI."Some customers get angry wondering why it's taking so long," the Alabama driver said. "On their end, they just see a vehicle driving all over the city with their groceries in it." In reality, the driver is following a route created by Walmart to deliver the orders, and someone's order has to be delivered last.Customers give drivers low ratings and pull away tips as a result, the driver told Insider.Walmart also batches together orders of non-perishable goods, such as shampoo and electronics, often combining a dozen or more orders together for one driver to deliver. "They're trying to be like FedEx and UPS, but they'll put 10 orders in one whole trip, and you might get $24 to $30 for that," one Spark driver in North Carolina told BI.The pay can be reasonable if the delivery addresses are close together, the driver said. But if they're more spread out, the deliveries take more time, making it less profitable, he added.On Instacart, shoppers used to shop and deliver one order at a time. But over the last few years, <a target="_blank" href="https://www.businessinsider.com/instacarts-profitability-relies-on-batching-orders-its-shoppers-hate-it-2023-8">Instacart has bundled two or three deliveries together</a>. The bundling, known as a "batch" in Instacart lingo, is one of the ways it improved its profitability ahead of its IPO last September, it said in filings with the SEC.One Instacart shopper in New York City said that they make less per order when they deliver a batch of two or three at once instead of a single delivery.More complicated – and generally less profitable – are batches that involve shopping multiple orders at different stores, then delivering them to different addresses, the shopper said."Two-store orders are even worse because it's like one store in Queens, the other in Brooklyn," the shopper told Business Insider. "They really don't understand the distance."Orders also get bundled together on restaurant delivery apps such as DoorDash and Uber Eats. Earnings aside, those batches often present another challenge for gig workers: Getting food to customers before it gets cold — or hot.One DoorDash customer expressed frustration that they were the third stop for the Dasher delivering their order in <a target="_blank" href="https://www.reddit.com/r/doordash/comments/13kezqx/double_dashing_is_really_annoying_for_customers/">a Reddit post</a> last year."He picked my food up from the restaurant that is 7 minutes away, but he has two other stops in the opposite directions before he gets to me," the poster wrote of the delivery worker. "And I ordered ice cream too.""If your food is unacceptable when you receive it, (especially the ice cream), you should complain to DoorDash that your food is ruined because your Dasher was on a triple stacked order," one commenter wrote.Do you work for Instacart, Spark, or another delivery service and have a story idea to share? Reach out to this reporter at abitter@insider.com

Why is your grocery delivery taking so long? Your driver has 2 other deliveries.

<ul><li>IT companies may not be hiring talent as slowdown curbs growth, but employees continue to search for jobs online. Naukri’s monthly active users at 12.1 million. </li><li>Cricket continued to give a boost to online food ordering apps in March. Daily active users online continue to increase month-on-month. </li><li>Despite the popularity of dating apps, young Indians continue to frequently visit online marriage portals and apps to find their true love. Matrimony apps see a jump in monthly and daily active users in March. </li></ul>On the face of it, there may be little or no connection between the white willow and online food ordering, but data shows that women in blue made Indians rather hungry in the month of March. And yes, most Indians also are as keen on marriage as ever, with matrimonial portals continuing to see higher month-on-month user metrics and app downloads. Three years after the pandemic struck, Indians are still addicted to their apps and are still looking for their dream job, if they are not planning their next vacation. From ordering food online to looking for jobs and homes online, Indian consumers are not putting the brakes on their online purchases just yet, even after the economy opened up completely post the lockdowns. App downloads continued in March as did higher monthly traffic across key consumer tech platforms. In the month of March, monthly and daily active users continued to surge across apps catering to consumer needs like online food ordering, travel, property rentals/purchases, groceries or even jobs. Yes, job searches have seen an unprecedented surge in the month of March shows data from Sensor Tower’s monthly data print. Leading technology services players may have slowed down on hiring, but employees are still flocking to job portals. According to a report by Bank of America, Naukri maintained its totem pole position in MAUs (monthly active users) with 12.1 million (+7.2% month on month) users and witnessed increase in daily active user base at 2.1 million (+6% MoM) in <keyword id="10294782" type="General" weightage="20" keywordseo="march-2023" source="Orion">March 2023</keyword>. LinkedIn has the highest DAUs or daily active users at 3.7 million and is a clear leader in terms of user retention at 33% followed by Naukri at 18%, says the report. Data shows that consumer apps have continued to see good traction in the month of March 2023 compared to February. What consumers have been interestingly visiting less frequently —- are the beauty apps like Nykaa and Purplle — whose traffic is down month-on-month. Beauty brands believe that omnichannel and physical store visits are the reason for the decline in online purchases. Food delivery &amp; grocery continue to see demand According to Bank of America’s India Internet report, a majority of online food delivery apps saw an increase in fresh app downloads and user metrics, while Swiggy saw a marginal decline in fresh downloads. Online food delivery apps launched special match day games to increase engagement, which resulted in higher ordering too. While Zomato launched ZPL prediction, Swiggy launched Match Day Mania. Not surprising that monthly active users of Zomato and Swiggy grew 4.9%/4.6% MoM to 53 million/35 million. Daily active users for both Zomato and Swiggy increased 2-3% MoM to 6.1 million/4.4 million, respectively. Domino’s Pizza continued to be third in all metrics. Swiggy showed a higher retention at 13% vs Zomato at 11%. Real estate continues to be hot property online Housing continued to see the highest online traffic, as searches for rented and ownership continued to jump. Both monthly active users and app downloads were healthy for online players. Monthly active users increased sequentially for all the apps catering to housing, while daily active users grew for 99acres and Housing. Traffic on Magicbricks remained stable. Monthly active users on 99acres MAUs witnessed steep growth +14.3% compared to February. In terms of user retention, Housing continues to lead at 11%, followed by 99acres and Magicbricks at 9%. Revenge travel is still a big deal With the onset of summer, consumers are planning their next trip, which has resulted in strong traction for online travel apps like Cleartrip and Makemytrip. User metrics improved for Cleartrip, GoIbibo and MakeMyTrip; while Yatra and EaseMyTrip witnessed a decline, says Bank of America. MakeMyTrip monthly and daily users inched upwards (+9%/4% MoM) ahead of the upcoming summer holiday season in May/June 2023. Cleartrip MAUs/DAUs both grew 44.8% MoM to 1.3 million /0.1 million, respectively, majorly driven by launch of bus services in over 90 cities and various offers like zero convenience fees and flat 10% off on all bus bookings. MakeMyTrip continues to be the leader in MAUs, DAUs and retention; with 15.8 million MAUs/1.5 million DAUs while Goibibo has 8.5 million MAUs/ 0.7 million DAUs. High five for fashion apps As social distancing has given way to more contact intensive interactions, demand for fashion apparel has also increased meaningfully. Consumers continue to look for bargains online and Ajio’s All Star sale has delivered the numbers. According to data, Ajio’s monthly active users showed a sharp increase sequentially as downloads of the app increased. Ajio’s MAU/DAU base rocketed 22%/26% sequentially. Myntra/Nykaa Fashion’s MAU base improved 3% MoM each while DAU base saw a slight 1-2% decline. In terms of user retention, Myntra is at 17% followed by Ajio at 16%, says the report. Marriages are forever Young Indians continue to look for their perfect partner. User metrics and downloads witnessed an increase across all apps. Shaadi.com continued to be a leader with monthly and daily active users at 9 million/2.9 million, respectively in March 2023. Jeevansathi’s monthly numbers grew 13% month-on-month, while daily users increased by 8% compared to February. BharatMatrimony user metrics remained largely stable. Jeevansathi has the highest user retention at 34% followed by BharatMatrimony at 33%. SEE ALSO <a href="https://www.businessinsider.in/stock-market/markets/news/-some-sectors-will-benefit-from-lower-energy-prices-in-fy24-a-balasubramanian/articleshow/99722850.cms">Earnings to remain volatile in FY24, but some sectors will benefit from lower energy prices, says Aditya Birla Sun Life MF’s CEO A Balasubramanian</a> <a href="https://www.businessinsider.in/business/corporates/news/zepto-preps-for-public-listing-in-2-years-brings-in-ramesh-bafna-as-cfo-to-lead-ipo-process/articleshow/99514143.cms">Zepto preps for public listing in 2 years; Brings in Ramesh Bafna as CFO to lead IPO process</a>

Consumers continue to throng apps in search of Roti, Kapda & Makaan, March sees healthy user metrics and app downloads

<ul><li><keyword id="830092" type="General" weightage="20" keywordseo="zomato" source="Orion">Zomato</keyword> and <keyword id="6358977" type="General" weightage="20" keywordseo="swiggy" source="Orion">Swiggy</keyword> will be liable to collect <keyword id="6354679" type="General" weightage="20" keywordseo="gst" source="Orion">GST</keyword> on online orders of food, instead of restaurants.</li><li>We don’t tax platforms like Amazon because we understand that they are marketplaces, why such difference with food aggregators, asks EY’s Bipin Sapra.</li><li>The tax loss to the government due to alleged under-reporting by food delivery aggregators is ₹2,000 crore over the past two years.</li></ul>India’s Finance Minister Nirmala Sitharaman on Friday announced that online food delivery platforms like Zomato and Swiggy will be the ones collecting goods and services tax (GST) from customers. The tax rate stays consistent at 5% and the ruling comes into effect on January 1, 2022. Earlier, it was the responsibility of the restaurants to do the same. It did seem pretty fair though, given that restaurants were the ones actually serving the customers while these new age platforms only facilitated online ordering. But it is what it is and the tax experts are not too impressed with it. The partners of renowned law and consultancy firms agreed that taxing platforms like Zomato and Swiggy was not the right way to go about this. “Are we asking Amazon and others to pay the tax? No, because we understand that separate from where there is a buy and sell,” EY’s Bipin Sapra said, adding that food delivery platforms work in a similar manner. But before we form an opinion about it, it is important to understand what this hullabaloo is all about. ‘It’s transfer of responsibility, not an add on tax.’ A customer pays a GST of 5% on each order they place, whether for dine-in or at-home delivery. The restaurants collect this GST because it is the one providing the services/product to the customers directly. The Indian government has now decided that restaurants would not be the ones collecting the taxes on online orders accepted through apps like Zomato and Swiggy. Instead, these food aggregator businesses will be the ones doing so. “They've actually said that these electronic commerce operators would be paying the tax on behalf of restaurants that are supplying customers through their platform. It is like a transfer of responsibility. The restaurant is not required to pay that, but yes they will continue to pay the tax for the offline sales,” PwC’s Anita Rastogi said in an exclusive interaction with Business Insider. Therefore, it doesn't really have much of an implication on customers in many cases as the GST rate stays the same. In some, it does. ‘I already pay GST on order, why do I care who collects it?’ While the government of India is yet to issue further clarification on the new GST norms for Zomato and Swiggy, the current facts have actually made the platforms quite redundant. If restaurants are not supposed to collect GST on online orders, does this mean that placing an order directly from the restaurants will be cheaper than placing it through these platforms? “If I order from a dhaba [roadside restaurant] next door and there is a 5% tax that Zomato charges, but if I call him directly, I don't have to pay 5% tax... Then that brings in inefficiencies and then takes away the whole purpose of having these platforms who are pushing the smaller players to reach a bigger audience,” Chilana &amp; Chilana Law Office’s Sandeep Chilana said. Even the tax experts or the platforms themselves are not too sure about how the government plans to play it out. Both Zomato and Swiggy have <a href="https://economictimes.indiatimes.com/tech/startups/swiggy-zomato-reach-out-to-govt-for-clarity-on-gst/articleshow/86439373.cms" data-type="tilCustomLink">reportedly</a> reached out to the government, seeking more details on the GST being levied on them. They are worried that this could lead to tax cascading (tax on tax). Abhishek Rastogi, partner at Khaitan &amp; Co, also raised similar concerns. There is one thing for sure — you will have more tax on your plate now. Earlier, restaurants below certain thresholds were exempted from paying GST on online or dine-in orders. Thanks to the new policies, even those restaurants would be under the tax next and ordering from your nearest dhaba will get more expensive. ‘This is precisely why the government took this up’ Despite the increase in online ordering, the government of India has not been able to fill up its treasury at the same rate. “These restaurants were required to take the GST and pay the tax to the government, but somewhere down the line — through technology, artificial intelligence, etc — many of the restaurants are not paying this particular tax to the government,” Rastogi said. As per the <a href="https://www.business-standard.com/article/economy-policy/5-gst-on-food-delivery-apps-fuel-to-stay-out-of-ambit-key-decisions-121091701376_1.html">estimates</a>, the tax loss to government due to alleged under-reporting by food delivery aggregators is ₹2,000 crore over the past two years. ‘But is there any way out?’ “The simplest solution which can be implemented as soon as possible was tax collected at source (TCS),” Rastogi added. Tax collected at source (TCS) is the tax payable by a seller, which he collects from the buyer at the time of sale. Platforms like Zomato and Swiggy are liable to pay TCS of 1%, which highlights that the government had already taken cognisance of the issue. The experts agree that increasing the TCS was a much simpler and faster way to go about things here, instead of introducing a new tax altogether. SEE ALSO <a href="https://www.businessinsider.in/cryptocurrency/news/south-koreas-crypto-regulations-are-tightening-around-investors-and-exchanges-alike/articleshow/86426452.cms">South Korea’s crypto regulations are tightening around investors and exchanges alike</a> <a href="https://www.businessinsider.in/stock-market/news/paras-defence-and-space-technologies-ipo-gets-blockbuster-demand-from-investors/articleshow/86422668.cms">Paras Defence and Space Technologies IPO gets blockbuster demand from investor</a> <a href="https://www.businessinsider.in/business/news/experts-say-karnatakas-ban-on-games-of-chance-like-dream11-and-mpl-may-face-a-legal-test/articleshow/86419697.cms">Experts say Karnataka’s ban on games of chance like Dream11 and MPL may face a legal test</a>

India needs to review how it wants to extract tax from Zomato and Swiggy

<ul><li>Zomato's ₹ 9,375 crore initial public offering (IPO) opens for subscription today.</li><li>We take a close look at Zomato’s marketing strategy, which has helped the brand grow leaps and bounds in 13 years and none of its success would have been possible without its witty campaigns.</li></ul>With the online food delivery market at the cusp of evolution, Zomato signs for its initial public offering (IPO) today. All eyes are on Zomato, afterall it is India’s first-ever foodtech brand to go public. The <keyword id="9029084" type="UNKNOWN" weightage="20" keywordseo="zomato-IPO">Zomato IPO</keyword> will also be the second largest share sale after the ₹ 10,355 crore IPO from SBI Cards and Payment Services last year. The huge buzz and anticipation reflected in this tweet by Zomato. <div type="twitter" handle="zomato" handlename="zomato" image="http://pbs.twimg.com/profile_images/1100268333352525826/IkyIXuZ4_normal.png" favoritecount="7644" retweetcount="513" status="mereko to aisa dhak dhak horela hai" createdat="1626233503000" id="1415151999713120261"></div> The global FoodTech giant that we know today, started as a small discovery and review platform Foodiebay in 2008 and today, it is a multinational company with its presence across 16 countries. Before launching Foodiebay, Zomato’s co-founder Deepinder Goyal had already experienced failure in this category with his earlier online food delivery platform named foodlet.com. He got together with Pankaj Chaddah, who left four years ago, and started Zomato. By the end of 2008, Zomato became Delhi’s largest online directory of restaurants. Zomato has grown leaps and bounds since 2008 and none of this would have been possible withouts its robust marketing strategy. It hasn’t just served us good food, it has also kept us well-entertained with its engaging marketing strategy across all platforms. <cmsannotation type="cmsannotation" annotationid="Twitter" text="Twitter">Twitter</cmsannotation> It has kept its messaging simple and relatable that often elicits a huge response from the audience. According to Talkwaker, Zomato’s Twitter account adopts a tone that is frivolous, witty and sometimes even counter intuitive. It often asks a question on Twitter to engage with its audience. <div type="twitter" handle="zomato" handlename="zomato" image="http://pbs.twimg.com/profile_images/1100268333352525826/IkyIXuZ4_normal.png" favoritecount="571" retweetcount="17" status="suggest a local dish from your area that everyone should try" createdat="1623912535000" id="1405417153130483714"></div> Today, it has 1.4 million followers on Twitter. With this one tweet, Zomato started a trend and many brands jumped onto the bandwagon. <div type="twitter" handle="zomatoin" handlename="zomato india" image="http://pbs.twimg.com/profile_images/1309450648287506432/Z0myUNLs_normal.jpg" favoritecount="19395" retweetcount="3680" status="Guys, kabhi kabhi ghar ka khana bhi kha lena chahiye" createdat="1562143050000" id="1146337153674174465"></div> From PUBG’s ban to when Rashi-ben put an empty cooker on the Rasoda, Zomato’s always the first brand to be a part of social media trends. <div type="twitter" handle="zomatoin" handlename="zomato india" image="http://pbs.twimg.com/profile_images/1309450648287506432/Z0myUNLs_normal.jpg" favoritecount="16520" retweetcount="1477" status="khali cooker gas par chadhane se acha hai order hi kar lo" createdat="1598161603000" id="1297409918094344194"></div> <div type="twitter" handle="navdhad" handlename="ND" image="http://pbs.twimg.com/profile_images/1410995976618217472/USdeIJn0_normal.jpg" favoritecount="252" retweetcount="32" status="Someone sent me this and I can’t even. Well done @ZomatoIN. 😂😂 https://t.co/UI2P4L0bga" createdat="1599057108000" id="1301165938713059328"></div> <cmsannotation type="cmsannotation" annotationid="Zomato’s email marketing strategy" text="Zomato’s email marketing strategy">Zomato’s email marketing strategy</cmsannotation> Zomato’s marketing strategy is refreshing and relatable. It tries to leverage humour whenever, wherever possible. While email marketing seems like a dying phenomenon, Zomato has proven time and again that if you do it right, consumers click and order. Food-tech firm Zomato is known for its powerful visuals, bold colours and humour. It is that one brand whose emails you don’t want to unsubscribe to. Its email marketing is based on food insights and eating behaviour. During the lockdown, parents were quite skeptical about ordering food online. So, Zomato reached out to its mailer base with a smart, witty solution or cheat-sheet. <div type="image" title="zomato cheat sheet" msid="84435508" hostid="261"></div> Zomato once imagined what Biryani’s curriculum vitae would look like and won our hearts. <div type="image" title="Zomato biryani mailer" msid="84435494" hostid="261"></div> It often sends topical emails as well. <div type="image" title="zomato guddu bhaiya" msid="84435553" hostid="261"></div> <cmsannotation type="cmsannotation" annotationid="Zomato’s Out-of-home marketing" text="Zomato’s Out-of-home marketing">Zomato’s Out-of-home marketing</cmsannotation> Experts often say that pictures do well on billboards but Zomato has proved them wrong time and again. It always sticks to its brand colors and it is easy to spot a Zomato ad even between heavily crowded Mumbai streets from a distance away <div type="image" title="Zomato billboards" msid="84435408" hostid="261"></div> Even if you are Indiranagar ka gunda, you would stop your vehicle to read these billboards for a good laugh. <div type="image" title="Zomatos-Outdoor-Ads-Are-Going-Viral-And-They-Are-Totally-Killing-It-1280x720" msid="84435389" hostid="261"></div> How to make you laugh and salivate at the same time? Zomato knows it well. <div type="image" title="best-zomato-ads-6" msid="84435414" hostid="261"></div> <cmsannotation type="cmsannotation" annotationid="Zomato’s best marketing campaigns" text="Zomato’s best marketing campaigns">Zomato’s best marketing campaigns</cmsannotation> When it turned a bad advertisement into one of the most talked-about marketing campaigns In September 2020, after consumers felt tired of watching Zomato’s YouTube and TV ads, a few of them took to social media platforms to make fun of the brand for its Butter Chicken ad. However, Zomato took this criticism in its stride and came up with a rather smart idea that not only helped it come up with some fun campaign ideas, it also helped win brownie points with its consumers. The food-tech firm has admitted that its “YouTube ads suck!” and opened the floor for consumers to send in their entries for a creative ad. Apart from the novelty of the idea of crowdsourcing an ad, the fact that Zomato admitted that it is as tired of watching its Youtube ad as its consumer, made Zomato win a lot of hearts for its honesty. <div type="javascript" title="Instagram" contenttype="Image"><cdata><![CDATA[ ]]></cdata></div> Zomato also gave ₹25,00,000 to the winner of this marketing contest. <div type="javascript" title="Instagram" contenttype="Video"><cdata><![CDATA[ ]]></cdata></div> It isn’t just humour, Zomato knows how to bring about social change as well. On Women’s day in 2020, Zomato released an ad featuring PV Sindhu’s dad cooking. With the hashtag #SoWhatIfIDontCook, the brand celebrated women for their skills and work other than cooking, unlike that expected of an ‘ideal’ woman. It reminded the audience that cooking is a choice, not a woman’s ‘duty.’ <div type="Youtube" id="P_5g0Jp2x2c" title="Cooking is her choice, not her duty - Women's Day | Zomato" thumbUrl="https://i.ytimg.com/vi/P_5g0Jp2x2c/mqdefault.jpg"></div> It has also tried to keep its employees and delivery partners first with various campaigns. <div type="javascript" title="Instagram" contenttype="Image"><cdata><![CDATA[ ]]></cdata></div> Humour can be a powerful tool to get your point across and from various pop culture references to punning their way into our inboxes, Zomato has done it all. *All images embedded in this article were downloaded from Zomato's Twitter handle*

From Foodiebay to becoming India’s first FoodTech platform to sign up for IPO: Here’s how Zomato changed food marketing in India in 13 years

<ul class="summary-list"><li><keyword id="2850943" type="PERSON" weightage="60" keywordseo="Deliveroo">Deliveroo</keyword> shares tumbled 30% at its market debut by opening well below the price of its IPO.</li><li>It's gone from "hero to zero" as its market debut fell flat on its face, AJ Bell's Russ Mould said.</li><li>Deliveroo began trading on the <keyword id="117776" type="CITY" weightage="60" keywordseo="London-Stock-Exchange">London Stock Exchange</keyword> on Wednesday under the ticker "ROO."</li></ul>Deliveroo fell as much as 30% in the food delivery-startup's public trading debut on Wednesday, marking a downbeat start to the biggest initial public offering in London in a decade.The company's shares were trading at an intraday low of 271 pence ($3.78) per share, lower than the offering price of 390 pence ($5.35). The price recovered to 313 pence ($4.31) at 8:45 a.m. London time."Deliveroo has gone from hero to zero as the much-hyped stock market debut falls flat on its face," said AJ Bell investment director Russ Mould. "It had better get used to the nickname 'Flopperoo'." The UK-based company had priced 384.6 million shares at 390 pence per share, the bottom of its marketed range between 390 pence and 410 pence ($5.65), hoping to target a valuation of 7.6 billion pounds ($10.5 billion). But it's the first of London's top five deals this year that wasn't able to open at its highest targeted valuation, shedding more than 2 billion pounds ($2.7 billion) in market value on its trading debut.Analysts say its IPO took a turn for the worse when multiple fund managers said they wouldn't back the business due to concerns about working practices, spooking many that applied for its shares and possibly racing to dump them."It reflects the cautious approach big funds have shown to the stock amid concerns about working practices and governance," said Neil Wilson, chief market analyst at <keyword id="31671" type="CITY" weightage="60" keywordseo="markets">Markets</keyword>.com. "A lot of the big UK funds are not on side, which was failure number one."Amazon-backed Deliveroo, which trades on the London Stock Exchange under the ticker symbol ROO, raised 1.5 billion pounds ($2.1 billion) via proceeds from investors. It could have raised 1.77 billion pounds ($2.4 billion) had the company priced its shares at the higher end of its IPO range. But its offering was priced at the lower end because of a drop in shares for food-service firms such as <a href="https://markets.businessinsider.com/stocks/tkayf-stock">JustEat</a> and <a href="https://markets.businessinsider.com/stocks/dlvhf-stock">Delivery Hero</a> on Monday, the <a href="https://www.wsj.com/articles/amazon-backed-deliveroo-secures-10-5-billion-valuation-in-london-ipo-11617104970?mod=e2tw">Wall Street Journal reported</a>, citing a spokesperson.The company grew to the point of launching on the stock market partly thanks to the exploitation of its workers, said Connor Campbell, a financial analyst at SpreadEx. "Now, said exploitation is one of the main reasons behind its sour start to life as a public company," he said.It approached its market debut uniquely compared to other IPOs. Only institutional investors are able to participate in Deliveroo's market debut on March 31, but private investors buying into its 50 million pounds ($68.6 billion) <a href="https://primarybid.com/ipo/deliveroo-open">community offer</a> can participate once unconditional trading begins on April 7. Deliveroo was founded in 2013 by former banker Will Shu and his childhood friend Greg Orlowski. The British firm offers food, groceries, and alcohol for delivery on demand via an app, and ferries goods out to consumers through a network of gig-economy riders.Its IPO will be a test for the UK <keyword id="6358815" type="UNKNOWN" weightage="60" keywordseo="tech">tech</keyword> startup industry, where valuations for unprofitable, high-growth companies have become increasingly bullish, even as public investor appetite for riskier businesses remains largely untested.The company faces stiff competition in the sector from direct rivals Uber Eats and Just Eat, plus niche grocery delivery apps such as Gorillas, Getir, and Weezy.Deliveroo primarily makes money by charging its restaurant and grocery partners a commission on each order, up to 35% in some cases. Though hoping to permanently benefit from an uplift in takeaway orders during the pandemic, the firm remains loss-making.The firm reported a £225.5 million ($311 million) pre-tax loss for the full-year 2020, a narrower loss than the £317.7 million ($438 million) it lost in 2019. Revenues were up 54% to £1.1 billion ($1.5 billion) from 2019.Other revenue streams include its subscription programme for regular consumers who want lower delivery fees; food procurement deals; licensing out its "Editions" dark kitchens to restaurant brands; and its "Signature" marketing platform.Its listing is also closely watched thanks to its dual-class share structure, which sees Shu retain control over the firm in a model similar to US listings. The CEO will be granted 20 votes per share, while other shareholders will receive one vote per share.The IPO is set to make Shu a wealthy man, since he plans to sell approximately $36 million in shares, leaving him with a stake in the company worth around $662 million.While Deliveroo has indicated that demand from institutional investors exceeded supply in the run-up to its IPO, a number of big firms <a href="https://www.businessinsider.com/rathbones-multi-asset-to-skip-deliveroo-ipo-governance-profitability-2021-3">publicly stated they would not back</a> the company.Aviva, Rathbones, Legal &amp; General, and others variously cited Deliveroo's lack of profitability, and <a href="https://www.businessinsider.com/deliveroos-ipo-beset-by-criticism-over-worker-pay-profitability-2021-3">the reputational and financial risk</a> posed by the fact its riders are gig-economy contractors rather than workers entitled to a minimum wage.That comes <a href="https://www.businessinsider.com/uber-reclassify-uk-drivers-minimum-wage-benefits-supreme-court-defeat-2021-3">after the Supreme Court ruled in February</a> that ride-hailing giant Uber needed to reclassify its drivers, also deemed contractors, as workers and pay them holiday pay and a minimum wage.The IWGB, a British union representing gig economy workers, said it was organizing a strike of Deliveroo riders on April 7, when unconditional trading begins.Goldman Sachs and JPMorgan are joint global coordinators on Deliveroo's IPO, while Bank of America, Citigroup, Jefferies, and Numis Securities are join bookrunners.<a href="https://www.businessinsider.com/deliveroo-ipo-lse-investing-strategy-how-to-invest-investor-interest-2021-3">Insider breaks down everything investors need to know about Deliveroo's IPO - from its dual class structure to who's making money and who's shunning it.</a>

Deliveroo goes 'from hero to zero' after tanking 30% at its London IPO as investors get tough on gig-worker rights

<ul class="summary-list"><li>Ant-backed Indian startup <keyword id="830092" type="COMPANY" weightage="60" keywordseo="Zomato">Zomato</keyword> has filed for an <keyword id="6354763" type="UNKNOWN" weightage="60" keywordseo="ipo">IPO</keyword> that could raise as much as $1.1 billion.</li><li>The food-delivery group's listing could be <keyword id="3658" type="COUNTRY" weightage="60" keywordseo="India">India</keyword>'s biggest this year amidst a crushing pandemic.</li><li>Zomato plans to issue 90% of new shares, while its major shareholder will offer the rest.</li></ul>Indian food-delivery firm Zomato, backed by billionaire Jack Ma's Ant Group and <a href="https://markets.businessinsider.com/stocks/uber-stock">Uber</a>, plans to raise up to 82.5 billion rupees ($1.1 billion) via an initial public offering in what would be the country's largest stock-market listing this year.The startup's <a href="https://www.sebi.gov.in/filings/public-issues/apr-2021/zomato-limited-drhp_49956.html">initial prospectus</a> filed with the Securities and Exchange Board of India this week showed it plans to issue new shares to raise 75 billion rupees ($1.01 billion), while its top shareholder Info Edge India will offer shares worth 7.5 billion rupees ($101.2 million).The company's listing plans come as India combats a <a href="https://www.insider.com/photos-reveal-india-crisis-surge-covid-19-infections-2021-4#india-has-been-reporting-the-highest-number-of-new-daily-coronavirus-infections-in-the-world-breaking-the-global-record-for-the-fifth-day-in-a-row-earlier-this-week-1">crippling coronavirus wave</a>, with at least 300,000 new infections being recorded every day in the past week. Official fatalities have <a href="https://www.bbc.co.uk/news/world-asia-56919924">topped 200,000</a> as of Thursday, but the real number is thought to be far higher as the country's health infrastructure appears to be collapsing under the volume of new cases.Re-enforced lockdowns across the country have driven many Indian consumers to shift their spending online. Zomato, which serves around 70 million customers each month, saw its revenue grow 5.5 times between 2018 and 2020, after recording its highest-ever order value in history during the pandemic."The accelerated growth of our business stemming from the effects of the COVID-19 pandemic may not continue in the future," the company said in its prospectus.Zomato was founded as "Foodiebay" in 2008 by Deepinder Goyal and Pankaj Chaddah, the entrepreneurial alumni of the prestigious technical university IIT. <a href="https://www.businessinsider.in/business/startups/news/zomato-journey-from-a-weekend-project-to-a-3-billion-company/articleshow/76901180.cms">What began as a weekend project</a> for them grew into a well-known unicorn now present in 24 countries. At its last fundraising round in February, the company was valued at $5.4 billion. Both the US and the UK have also seen food-delivery companies capitalizing on the stay-at-home environment during the pandemic with <a href="https://markets.businessinsider.com/news/droof">Deliveroo</a>, <a href="https://markets.businessinsider.com/stocks/dash-stock">DoorDash</a>, and <a href="https://markets.businessinsider.com/stocks/grab-stock">Grab</a> all launching IPOs in the past six months.

Indian food-delivery startup Zomato files for a $1.1 billion IPO as the country battles a catastrophic wave of COVID-19 infections

<ul class="summary-list"><li>Some 400 <keyword id="6354868" type="COUNTRY" weightage="60" keywordseo="UK">UK</keyword> <keyword id="2850943" type="PERSON" weightage="60" keywordseo="Deliveroo">Deliveroo</keyword> riders are striking on Wednesday over better pay, conditions and rights.</li><li>The strike coincides with trading of Deliveroo's shares opening to retail investors.</li><li>Deliveroo rider Greg Howard said the firm has given "empty broken promises" since he began striking in 2019.</li></ul>Around 400 Deliveroo riders are attending socially-distanced <keyword id="6434249" type="UNKNOWN" weightage="60" keywordseo="Strikes">strikes</keyword> on Wednesday across five UK locations to protest pay, working conditions, and basic workers' rights.The strikes come on the same day as Deliveroo <a href="https://markets.businessinsider.com/news/stocks/deliveroo-stock-price-trading-opens-retail-investors-rider-strikes-pay-2021-4-1030280037">opened trading to retail investors</a> and one week after the company <a href="https://www.businessinsider.com/deliveroo-stock-price-ipo-london-stock-exchange-food-delivery-2021-3#:~:text=Deliveroo%20goes%20'from%20hero%20to,tough%20on%20gig%2Dworker%20rights&amp;text=Deliveroo%20shares%20tumbled%2030%25%20at,AJ%20Bell's%20Russ%20Mould%20said.?utm_source=markets&amp;utm_medium=ingesttm_medium=ingest">went public on the London Stock Exchange</a>.The food-delivery firm offers restaurant food, groceries, and alcohol for delivery on demand via an app, and relies on a network of gig economy riders to ferry out supplies to its customers.It relies on more than 100,000 riders across the 12 markets where it operates. These riders are classified as independent contractors, and are therefore not eligible for the minimum wage, sick pay, and other benefits.UK riders are gathering in London and the major cities of York, Sheffield, Reading, and Wolverhampton to demand a higher wage, safety protections, and basic workers' rights, according to a statement by the trade union Independent Workers' Union of Great Britain (IWGB).Alex Marshall, the president of the IWGB, told Insider the union is "trying to pull back the curtain on an incredibly opaque company that hides behind statements with no statistics to back it up."The union has an <a href="https://iwgb.org.uk/post/iwgb-challenges-deliveroos-refusal-of-collective-bargaining-as-a-human-right-in-court-of-appeal">ongoing court case</a> involving Deliveroo that centers on how workers are classified, but if the union loses, "we'll appeal it and we'll continue to hold them to account through the courts," said Marshall. The IWBG will be hoping that the fact <a href="https://www.businessinsider.com/uber-driver-lost-uk-legal-battle-court-worker-rights-employment-2021-2">Uber lost a UK Supreme Court ruling</a> over drivers' rights in February will bolster its case.Marshall said the union isn't "trying to topple Deliveroo because that would mean thousands of people out of work. We just want the company to treat its workforce properly."He said the company can continue to function in exactly the same way it does, but that it needs to give its workers better pay, conditions and rights.Marshall's comments come after the Bureau of Investigative Journalism published data in March indicating that <a href="https://www.thebureauinvestigates.com/stories/2021-03-25/deliveroo-riders-earning-as-little-as-2-pounds" target="_blank" rel="noopener">some riders earn as little as £2</a> ($2.76) per hour for delivering food to customers, which is well below the minimum wage of £8.21 ($11.35) an hour. Deliveroo has <a href="https://www.businessinsider.com/deliveroos-ipo-beset-by-criticism-over-worker-pay-profitability-2021-3">questioned the outlet's findings</a>.Meanwhile, Deliveroo CEO <a href="https://www.businessinsider.com/deliveroo-ceo-will-shu-stake-drops-trading-ipo-london-stock-2021-3">Will Shu is thought to have made around $36 million in a share sale</a> when the firm began trading on the LSE. He retails a 6.3% stake worth hundreds of millions.Deliveroo argues that the bulk of its riders don't want the constraints of formal employment and value flexibility.A spokesperson told Insider: "This small self-appointed union does not represent the vast majority of riders who tell us they value the total flexibility they enjoy while working with Deliveroo alongside the ability to earn over £13 an hour."Only yesterday we ran a survey and 89% of riders said that they were happy with the company and flexibility was their priority," the spokesperson said, adding that rider satisfaction was at an "all-time high."One striking Deliveroo rider, Greg Howard, has been working for the food delivery app since 2018. He's taking part in the Wednesday strikes virtually, meaning he's not logging into the Deliveroo app to take shifts.Howard told Insider that the only feedback riders can give is via the app and it asks them on a scale of one to five how they feel about working for Deliveroo. He said there's no in-depth feedback and on the odd occasion the company sends surveys to riders over email.Howard told Insider working conditions and pay have worsened over time. He first went on strike in February 2019 when he got a group of colleagues together in Nottingham, where he lives, who felt they weren't being treated fairly by Deliveroo."The fees decreased, the hours became longer. I was doing 15-hour days, seven days a week," he said.Read more: <a href="https://www.businessinsider.com/9-instacart-power-players-helping-the-grocery-delivery-provider-as-it-prepared-for-a-2021-ipo-2021-3">Instacart Power Players: The 11 top executives - including recent hires from Amazon, Uber, and Goldman Sachs - as the company eyes an IPO</a>Deliveroo agreed to meet with Howard and his group after the 2019 strikes to discuss the low pay and conditions, but he says little changed.Howard says he contracted COVID-19 twice last year, saying this forced him to take time off work. As Deliveroo riders are not automatically entitled to sick pay, he said this left him struggling."I've got a family to support - I had a newborn baby then and my partner was on maternity leave," he said. "We had nothing coming in. I had to make a choice about whether I continue to work and put the public at risk or take the time off and not get paid."Riders also have to dip into their pocket to pay for expenses, such as insurance and petrol.Howard, who previously used a push-bike to do deliveries, said he invested in a scooter which boosts his ability to accept more orders.But even with a faster vehicle, he says the earnings boost is offset by higher expenses.When asked if he will continue to work for Deliveroo, Howard said "it's a tough one, but yes.""I do enjoy the job, I just want it to be better. I want better rights, pay and safety when I'm working," he said.

You Searched For "food delivery IPO" and got 11 results

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Indian food-delivery startup Zomato files for a $1.1 billion IPO as the country battles a catastrophic wave of COVID-19 infections

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Hundreds of Deliveroo riders in the UK are striking on its first day of full trading over pay and working conditions

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