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Swiggy and Zomato Set to Slice Food Discounts, Leave Diners Hungry for Deals

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Industry insiders suggest that food delivery giants Swiggy and Zomato are set to scale back their discount strategies as they face increasing competition in the quick commerce sector. This shift indicates a move towards more sustainable pricing models, aimed at boosting profitability while maintaining their leadership in the market.

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Discounts have long been a go-to strategy for drawing in customers, but with the rising competition in quick commerce, both platforms are reassessing this approach.

“With quick commerce heating up, Swiggy and Zomato are likely rethinking their discount strategies, opting for more nuanced pricing in their food delivery services,” explained Mitesh Shah, co-founder of IPV and partner at Physis Capital.

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Although neither Swiggy nor Zomato provided official comments, their recent actions suggest a change is underway. In the past year, both platforms have reduced the free delivery radius on basic subscriptions from 10 km to 7 km. Additionally, they are adjusting their discount structures to streamline delivery operations

To maximize revenue per delivery partner, they’re experimenting with longer-distance orders, grouping them together and offering discounts based on cart value and delivery distance. This strategy allows them to batch smaller orders from farther locations while maintaining efficiency.

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