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Zomato’s Deepinder Goyal says its food delivery competitors have only 6-9 months left

Zomato founder and CEO Deepinder Goyal, in an earnings conference call hosted last week by its investor Info Edge, said that, though there are three players in restaurant food delivery in India, he doesn't think they have more than 6 to 9 months left; this is in response to a question about the few food delivery players which had faced issues last year, to which he said: "Those who shutdown never really had marketshare to begin with. With the other guys, the way the others are working. I don't think they have more than 6-9 months left," he said. It's worth noting that Swiggy raised $35 million in January, and possibly another $7 million since. Goyal highlighted issues with food delivery (detailed below), saying that it's loss-making to run an operation where the restaurant isn't delivering. He said that Zomato is "Working very closely with partners to build tech and efficiency to get into the green. Making last mile logistics in the food space work is very very hard." Zomato reported Rs 492 crores of losses on revenues of Rs 185 crore for the financial year ended March 2016. On the Info Edge conference call, its co-founder Sanjeev Bikhchandani said that they expect Zomato to double revenues this year. Goyal said that they've seen a doubling of revenue over the last six months, while bringing costs down. Speaking of competition, Goyal added that, "There are a couple of players bigger than us when it comes to order volume but their average order values are…

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Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

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