Swiggy's quick commerce profit margins hurt as expansion, discounts take precedence

Quick Summary:

While Swiggy saw improvement in its core food delivery business, its quick commerce arm witnessed lower margins as dark store, expansion, customer acquisition and retention costs were driven up due to competition.

The company saw its contribution margins, a metric for profitability, dip to -4.6% in Q3 from -1.9% in the quarter ended September 2024.

Swiggy attributes the improvements to innovation in terms of offerings like the 10-minute food delivery service Bolt, which already accounts for about 9% of all its orders.

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Article Details

Author / Journalist: Akshita Toshniwal

Category: StartupsEconomyBusiness

Markets: India

Topics: Swiggy Food Delivery Store Quarter Quick Margins Growth Commerce Expansion

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-02-05 @ 16:54:06 (12 hours ago)

News Timezone: GMT +8:00

News Source URL: yourstory.com

Language: English

Article Length: 771 words

Reading Time: 5 minutes read

Sentences: 37 lines

Sentence Length: 21 words per sentence (average)

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Copyright Owner: © YourStory

News ID: 25911419

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