Latest news with #Taurani
Time of India
2 days ago
- Business
- Time of India
Rapido crashes food delivery party. Should Swiggy and Eternal investors be worried?
Just when Swiggy and Zomato thought they had the food delivery turf locked down, ride-hailing app Rapido has kicked the door open, threatening to shake up the duopoly with a bold, undercutting strategy. The bike-taxi platform has entered the food delivery business, charging restaurants commissions nearly half of what Zomato and Swiggy do. That single move has already jolted investor sentiment. Shares of Swiggy and its listed parent, Eternal , slid 2–3% in the previous session and fell another 1% today, as investors absorbed the news of Rapido's entry. Elara Capital's Karan Taurani didn't hold back: 'Rapido could challenge stable take-rates and profitability of the incumbents,' he said, warning that while Rapido's lack of a dedicated fleet may impact delivery experience in a market obsessed with sub-30-minute fulfillment, its growing scale could still disrupt the status quo. Rapido's commission model is a flat 8–15%, far below the 21–22% rates charged by Zomato and Swiggy. This pricing gap not only threatens to raise rider earnings but also reduce delivery costs — a double whammy for incumbents used to commanding premium take-rates. Elara's sensitivity analysis suggests that even a 200 bps drop in revenue growth or a 10% compression in valuation multiple for Eternal's food delivery business could drag the target price down 6%, from Rs 300 to Rs 282. 'Rapido's sharp scale-up could risk the stable operational environment,' Taurani added, noting that Zomato and Swiggy's food delivery segments are now decade-old, mature businesses aiming for 5% adjusted EBITDA margins. The Rapido Advantage Unlike ONDC, Ola, or Thrive, Rapido brings serious logistics muscle. With 4 million riders clocking 3–3.5 million daily rides, it already dwarfs Zomato's and Swiggy's fleets (0.44 million and 0.53 million, respectively). These riders operate with idle time that can be easily redirected to food delivery without fresh capex—boosting utilization and trimming costs. Further, Rapido's 'Captain's App' aims to consolidate rides, parcels, and food into one job list, optimizing distance and maximizing rider earnings through dynamic algorithmic assignments. The company has also gained early experience delivering food via ONDC, giving it a running start. With a recent Rs 241 crore ($29 million) fundraise in December 2024, valuing it at $1.1 billion (total raise so far: $559 million), Rapido may not require the kind of heavy marketing spend that defined the early years of food tech in India. For context, Zomato spent over Rs 3,300 crore ($400 million) on advertising and promotion between FY20–22 to build out its platform. Also read | Confused between Swiggy and Zomato? Retail investors, HNIs say: Why not both Market Saturation and Structural Limits Still, scaling won't be easy. The penetration of chain restaurants in India is just 5%, compared to 25–29% in developed markets, which limits take-rate expansion. Additionally, the growth rate in online food delivery has cooled, dropping to 15–16% YoY from a blistering ~40% CAGR between CY18–23. That plateau has kept investor focus sharp. Morgan Stanley, in a report last week, initiated coverage on Swiggy with an Overweight rating and a target price of Rs 405, citing improved execution and total addressable market (TAM) expansion in quick commerce. The firm expects Swiggy to grow its gross order value (GOV) at a 63% CAGR between FY25–28, regaining some lost share, though it still lags Zomato by ~15% in market share and by two years on adjusted EBITDA. Morgan Stanley also valued Swiggy's food delivery segment at about 52% of Eternal's, reinforcing how tightly the two giants are being compared—and how even a small crack could ripple across valuations. While execution remains the big question mark for Rapido, its aggressive pricing, strong logistics backbone, and existing user base could push Zomato and Swiggy into a corner—where measured profitability may have to give way to market defence.
Time of India
27-05-2025
- Entertainment
- Time of India
Paresh Rawal quitting 'Hera Pheri 3' takes us back to the time when Deepika Padukone walked out of 'Race 2' and producer Ramesh Taurani sued her: 'Unethical, unprofessional behaviour'
Paresh Rawal announced his exit from 'Hera Pheri 3' which left the film in trouble. This came as a huge shock to Akshay Kumar , Suniel Shetty and director Priyadarshan. Akshay's production house has bought the rights of the film, thus, a lawsuit was filed against Paresh for his sudden exit after taking a signing amount of Rs 11 lakh and agreeing to be a part of the film. While this matter is still subjudice, Rawal's legal team has said in response to allegations made by the legal team of Akshay's production house, "They did not deliver the story, screenplay and also a draft of a long form agreement which was fundamental to the engagement of our client." This whole dispute takes us back to the time when Deepika Padukone had walked out of 'Race 2' after signing the contract and left the film after shooting for six days. Producer Ramesh Taurani had filed a lawsuit against the actress. Taurani had said that time in 2012, that Deepika's behaviour was 'unethical, unprofessional and unacceptable' He had also filed a lawsuit against the star as she left his film after signing the contract and after the shoot began. He had also stated that this is also unfair to the other actors in the film. He had said in an interview with Mumbai Mirror in 2012, "On that day, people kept calling me asking whether Deepika was out of Race 2. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trade Bitcoin & Ethereum – No Wallet Needed! IC Markets Start Now Undo I was clueless. I called her and asked her. She simply said that she would come to my office by 5 pm with her new manager to work out everything. At around 3 pm, she called to say that she wouldn't be able to keep the appointment. However, her manager would be present on her behalf. Finally, when the manager arrived, he simply told me that Deepika wouldn't be able to do our film. And that's because she is doing a major Hollywood project. Now imagine!" Taurani had said, "I have been a part of the Hindi cinema industry for 25 years. I have made several blockbusters. I have worked with famous actresses like Aishwarya Rai Bachchan, Katrina Kaif, Vidya Balan and Kareena Kapoor. But I have never faced a situation like this before.' In an interview with The Times of India, the producer said further, 'I had no choice but to file a complaint against her in the AMPTPP and CINTAA. I am deeply saddened by this unprofessional behaviour.' A close friend of Deepika had shared a statement with Mumbai Mirror and reacted to Taurani saying, "Constant delays are the reason Deepika can't do Race 2. When the first delay happened, she adjusted her dates and shot for two days. But then again, she was informed that the dates were being changed. She would have liked to do the film but she couldn't accommodate the new set of dates. She has conveyed her apologies to Ramesh Taurani. She had liked the script but unfortunately is not able to juggle her dates any longer.' Eventually, while Taurani filed a complaint against the actress, she had no choice but to be a part of 'Race 2'. However, recently, when ETimes got in touch with Taurani to get a comment on this 'Hera Pheri 3' dispute, reminding him of this issue with Deepika, he refused to get into the past. He shared that all's well that ends well and now he shares a good rapport with the actress. They have nothing against each other. He just commented on 'Hera Pheri 3' dispute and told us, "All I want to say is that, mainly when the artist signs the agreement, takes the signing amount and commits his dates and everything, I think he shouldn't go back off, that's not is not ethical. Whatever the reason may be, but it shouldn't be done." Check out our list of the latest Hindi , English , Tamil , Telugu , Malayalam , and Kannada movies . Don't miss our picks for the best Hindi movies , best Tamil movies, and best Telugu films .
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Business Standard
05-05-2025
- Business
- Business Standard
Jubilant pulls ahead of KFC, McDonald's as Q4 earnings near: Analysts
India's Jubilant FoodWorks' strong sales growth for the March quarter is set to outpace rivals whose franchisees are expected to report muted growth despite value-focused promotions, several analysts said. Operators of U.S. chains KFC, McDonald's and Burger King are likely to report a decline to mid-single-digit growth in same-store sales, as inflation-hit consumers cut back and local competition intensifies, according to six brokerages. Jubilant, however, has already flagged a 12.1% increase in like-for-like sales in India in its quarterly update, which analysts say has benefited from its focus on online sales, discounts on third-party platforms, and a waiver of delivery fees on app orders. Other franchisees have not issued sales updates. Sapphire kicks off earnings for the sector on Wednesday. "Competitive intensity is growing in fried chicken and burger and the larger existing players like KFC and McDonald's don't have anything different to offer versus rivals," said Karan Taurani, an analyst at Elara Securities. "Jubilant is performing the best of the lot," Taurani said, adding that its investments into 20-minute in-house delivery and app-led orders are helping reduce its reliance on third-party platforms, which rivals are heavily dependent on. India's fast-food sector is cooling as inflation-hit consumers cut back, with franchisees relying on discounts to stay competitive in a crowded market. Unlike Jubilant, which has pushed delivery and app-based offers, KFC and McDonald's franchisees rely more on dine-in traffic and face growing pressure from local cafes and restaurants, analysts said. Jubilant reported a 34% jump in consolidated revenue to Rs 2,107 crore ($250.05 million) for the March quarter. While Jubilant's digital strategy has delivered steady outperformance through the year, analysts expect its profit margins - like those of other operators - to remain under pressure in the March quarter, partly due to rising raw material and marketing costs. Three brokerages expect Jubilant's core earnings margin - a metric the restaurant operator aims to boost over the next few quarters by tightening its costs - to be unchanged from a year earlier. However, some analysts see fried chicken as a key long-term growth category, despite the challenge of sameness. "If you see from a longer-term perspective, the next growth driver is the overall fried chicken category in India, but there would be some pressure for one or two quarters," said Preeyam Tolia of Axis Securities.
Mint
22-04-2025
- Business
- Mint
Food delivery growth likely to remain flat q-o-q in Q4: analysts
Bengaluru: Growth in food delivery margins for Eternal (formerly Zomato Ltd) and Swiggy is likely to have remained steady on a quarter-on-quarter basis in the fourth quarter of FY25 as signs of slowdown in the overall food delivery segment continued, analysts told Mint . 'Margins would have been flat in Q4 on a q-o-q [quarter on quarter] basis as it already saw sharp improvement in the previous quarter. We don't expect a similar massive improvement in margins in the near term," said Karan Taurani, analyst at Elara Capital. Swiggy is likely to see a sharper rise in margins than Zomato, according to Taurani. Contribution margin is a key metric for profitability. Zomato's adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) in its food delivery business, which excludes Employee Stock Ownership Plan (Esop) costs, saw an improvement to 4.3% of gross order value (GOV), a key metric, in the December quarter from 3.5% in the previous quarter, driven by the hike in platform fee and other strategic calls. Similarly, Swiggy saw a significant improvement in adjusted Ebitda margins of its food delivery business, from 1.6% in the September quarter to 2.5% in Q3, further fuelling its 5% guidance in the medium term. Read more: Quick commerce, long payback: Can Zomato and Swiggy deliver returns to shareholders? 'Yes, we saw margin improvement driven by increase in platform fees for customers and other cost efficiencies and optimizations. We believe the margin should not only sustain, but continue increasing from here to stabilize around 5% in the next few quarters," Rakesh Ranjan, head of Zomato's food delivery business, said in the Q3 letter to shareholders. The online food ordering ecosystem has been experiencing a slowdown over the last few quarters, hurt by lower consumption. Swiggy and Zomato—which currently form a duopoly in the food delivery segment—have also acknowledged the shift while remaining optimistic that it won't have an impact in the long run. Zomato reported a GOV of ₹ 9,690 crore for the December quarter, up 17% year-on-year (y-o-y) but just 2.3% compared to the previous quarter, regulatory filings showed. Rival Swiggy reported a gross order value of ₹ 7,436 crore. While this was a 19.2% y-o-y improvement, on a sequential basis, its GOV grew just 3.4% in October-December. 'It (October-December) is a quarter which is slightly softer than other quarters, but we are growing at 19.2%, which is within the range of what we've guided to the markets about 18-22% growth for the category," Rohit Kapoor, CEO of Swiggy's food marketplace, told analysts during the Q3 earnings call in February. Both firms also face rising competition from newer players like Bengaluru-based Swish—which recently raised $14 million in Series A funding led by Hara Global and Accel—and Gurugram-based Zing. These new companies seek to learn from established food delivery startups such as Swiggy and Zomato, which began small and grew into well-capitalized, listed companies within a decade to form an integral part of the urban and semi-urban household ecosystem. 'Macro conditions impacting the segment will likely remain more or less the same. However, we can expect stable double-digit growth in the range of 20-25% in topline for both firms," Ashutosh Sharma, vice president at Forrester Research, told Mint . Analysts also remain modest about their expectations regarding 10-minute food delivery propositions, noting their impact on the overall business will be minuscule. The firms are also exploring avenues beyond food delivery, with the recent introduction of Pyng by Swiggy (professional white-collar discovery) and the expansion of District by Zomato. Analysts said the fourth quarter will likely highlight their expansion plans. Cash burn in quick commerce will continue to hurt bottom lines for both firms in the fourth quarter, as they continue to invest heavily in ramping up dark store operations and entering more cities, Forrester's Sharma said. 'Quick commerce will continue to drain their profit for the foreseeable future, though some of their actions towards achieving profitability will start bearing fruit in the medium term. I expect them to continue to burn cash and invest in operations," Sharma added. Swiggy has already seen a negative impact on its margins of Instamart, weighed by rising competition in grocery delivery and heavy capex costs. Its contribution margin for the quick commerce business declined to a negative 4.6% in the past quarter from a negative 1.9% three months ago. Read more: Consumer brands set to write the influencer marketing playbook to push rural sales? In a letter to shareholders, Swiggy said Instamart's margin was impacted by a mix of reasons, including dark store expansion and replacements that are yet to mature in terms of scale, heightened competition leading to higher customer incentives, increased investments on customer acquisition and activation, and seasonal investments on store and delivery network to cater to peak event volume, that is, heavy volumes seen during peak timings during festival periods. Zomato's Blinkit lost ₹ 103 crore in Q4, a sharp reversal from its break-even bottom line in the previous quarter. 'The losses in our quick commerce business this quarter are largely on account of pulling forward the growth investments in the business that we would have otherwise made in a staggered manner over the next few quarters. As of now, it seems like we will get to our target of 2,000 stores by Dec 2025, much earlier than our previous guidance of Dec 2026," Zomato's chief executive officer, Deepinder Goyal, said in the shareholders' letter. 'Q4 will give us an idea of the rate of store additions and possibly the outlook on profitability in quick commerce," Elara Capital's Taurani said.
