JumpyNoodle
JumpyNoodle

Zomato's offer to acquire Shiprocket @ $2B

12mo ago
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PrancingCupcake
PrancingCupcake
Meesho12mo

Shiprocket is just a delhivery wrapper. Not sure, what Zomato is going to leverage.

CosmicQuokka
CosmicQuokka

It's more than that, think of an aggregator like redbus , shiprocket also has largest d2c brand as their clients, due to scale, shiprocket is also available to offer lower rate to individual against direct quote from courier companies give us individuals

PrancingCupcake
PrancingCupcake
Meesho12mo

Red bus is not the right comparison, since the supply of buses are fragmented.
Shiprocket aggregates already formalised players which are just a few in India.

SquishyNarwhal
SquishyNarwhal
JumpyNoodle
JumpyNoodle
Google12mo

@SS_Croaker Thanks for calling it out.

ZestyQuokka
ZestyQuokka

What?! Why does Zomato need Shiprocket?

Shiprocket has shitty service nonetheless

JumpyNoodle
JumpyNoodle
Google12mo

Zomato has 11.5k Cr cash yielding 700+ Cr in interest/year based on their recent earnings report. As they became profitable at entity level in last 2 quarters, they are looking to take on more risk.

Source: https://b.zmtcdn.com/investor-relations/f8de89dec4a3e004b1885e466b3404a4_1699444620.pdf

I think Shiprocket could be a good fit with the Zomato's Xtreme 3rd party logistics service launched in Oct 2023.

https://economictimes.indiatimes.com/tech/technology/zomato-launches-hyperlocal-delivery-service-xtreme-to-leverage-3-lakh-strong-delivery-fleet/articleshow/104401745.cms

JumpyHamster
JumpyHamster

Disagree , onboarding all D2C for blinkit or zomato will be cheaper via agencies. Logistics cost is something zomato can do at enterprise scale deals and competitive discounts. Unless zomato is planning to become logistic provider

JumpyNoodle
JumpyNoodle
Google12mo

@Indiecrypto zomato announced that news is not true.

CosmicBanana
CosmicBanana
Amazon12mo

Trying to wrap my head around this

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