1

Post Covid Impact on Sales of Food Delivery Giants

By Gajanand Dubey 10836 SYBMS

A Post Covid Impact on Sales of Food Delivery Giants

 Introduction

In past few years the entire world faced the most unexpected guest, SARS Covid-19.
It was a pandemic faced due to outbreak of Coronavirus from a Chinese Laboratory
located in Wuhan in November, 2019. This outbreak not only took 68,59,093 deaths 1
but also crushed multiple economies and industries. Multiple small and medium
scale businesses got shut down. But in post Covid World many industries got a boost
like Medicine, Tours and Travel, etc. My research is on Impact on Sales of Food
Delivery Giants in Post Covid Era of India.

 Research Methodology

1. https://covid19.who.int/ World Health Organisation

2. https://www.planify.in/research-report/swiggy/financial/ Planify
3. https://www.zomato.com/investor-relations/financials Zomato
 2

This paper consists of Financial Analysis of Zomato and Swiggy for which data is
collected from their official websites and Planify.com.

o Statement of Problem Undertaken

Impact on Sales of Food Delivery Giants in Post Covid Era of India.

o Objectives

To analyze the sales of Food Delivery Giants before, during and after Covid 19
Pandemic.

To take follow ups of predictions and conclusions of past research papers with
similar topic.

o Hypothesis

H0 – Covid had no positive impact on sales of Food Delivery Giants.

H1 – Covid had positive impact on sales of Food Delivery Giants.

Dependent Variable is Sales.

Independent Variable is Covid pandemic.

o Limitations

Difficult to Collect data.

Planify which is one of the sources might not be completely reliable.

Inequal data and records of Financial Year of Swiggy and Zomato.

o Significance

To find relation between Covid and economy of food delivery industries of

India

1. https://covid19.who.int/ World Health Organisation

2. https://www.planify.in/research-report/swiggy/financial/ Planify
3. https://www.zomato.com/investor-relations/financials Zomato
 3

To check the prediction of K. M. Kiran Raj and K. G. Nandha Kumar that food
delivery industry will get a boost after lockdown is loosen.

To test the conclusion made by Ashish Kumar that future of online food
delivery is very promising and it should be continued.

To check the trend concluded by Deeksha Shetty and Prof. Jayadatta S did
change or not which was people were scared to order food from restaurant and
the prefer to cook food by themselves in their homes.

 Review Literature

1. K. M. Kiran Raj and K. G. Nandha Kumar published a research paper

“Impact of COVID-19 Pandemic on Zomato: A Case Study”,
International Journal of Case Studies om Business, IT and Education
(IJCSBE), ISSN: 3681-6942, Vol. 5, No. 1, January 2021. They
predicted that post covid era will have experience growth of hotel
related industries which will result in increase in demand for online
food delivery apps.
2. Ashish Kumar published a research paper “A study on the Impact of
Covid-19 On Home Delivery of Food Items through food delivery
platforms.”, Palarch’s Journal Of Archaeology Of Egypt/Egyptology
17(12), ISSN 1567-214x. He concluded that future of online food
delivery is very promising and it should be continued.
3. Purushottam Meena and Gopal Kumar published a research paper
“Online Food Delivery Companies’ performance and consumers
expectations during Covid-19” Journal of Retailing and Consumer
Services. 2022 Sep; 58: 103052. They did a comparative study on the
sales of food delivery companies in pandemic and also the emotional
sentiments of consumers towards the food delivery companies in US
and India.
4. Deeksha Shetty and Prof. Jayadatta S published a research paper “A
Study on Impact of Covid-19 on Buying Behavior of Consumer on
Online Food Delivery with reference to Zomato” International E
Conference on Adapting to the New Business – The way ahead,
December 3-4, 2020 Mysuru, India. They studied the consumer
behavior during the Covid 19 period and concluded that due to the
outbreak of coronavirus, people are scared to order food from
restaurants and they prefer to cook food in their homes.

1. https://covid19.who.int/ World Health Organisation

2. https://www.planify.in/research-report/swiggy/financial/ Planify
3. https://www.zomato.com/investor-relations/financials Zomato
 4

 Data Analysis

The entire research has been done on secondary data.

o
Pre Covid
Before outbreak of SARS Covid-19 the businesses were driven by
constant factors and strategies which were practiced since a
century ago. This same was applied for online food delivery
companies. All were facing the same competition and were
dependent on price, marketing, logistics and execution strategies.

Swiggy showed a rise in loss since financial year 2015-2016 till

financial year 2018-20219. They did had an upward slope when
it comes to revenue during this time period but steeper was the
loss during the same period.

Financial Year FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Gross Profit 0.12 23.57 145.05 461.34 1,257.80

Swiggy Gross Profit table1 in Rs. Cr. from FY 2015- 2019 (Pre-Covid) (Source:
Planify2)

Swiggy Gross Profit

1400

1200

1000

800

600

400

200

0
FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

#REF! Gross Profit #REF! #REF! #REF!

Swiggy gross profit Chart1 from FY 2015- 2019 (Pre-Covid) (Source: Planify)

1. https://covid19.who.int/ World Health Organisation

2. https://www.planify.in/research-report/swiggy/financial/ Planify
3. https://www.zomato.com/investor-relations/financials Zomato
 5

Financial Year FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Net Income -2.08 -137.18 -205.17 -397.3 -2,363.60

Swiggy Net Income Table 2in Rs. Cr. from FY 2015- 2019 (Pre-Covid) (Source:
Planify2)

Swiggy Net Income

500

0
FY 2015 FY 2016 FY 2017 FY 2018 FY 2019
-500

-1000

-1500

-2000

-2500

#REF! #REF! #REF! #REF! Net Income

Swiggy Net Income Chart2 in Rs. Cr. from FY 2015- 2019 (Pre-Covid) (Source:
Planify2)

In Pre-Covid era Zomato also experienced the same results. In FY 2018 and F 2019
they also experienced a rise in sale but in the same years they experienced a downfall
in loss.

Financial
FY 2018 FY 2019
Year
Gross Profit 4850.94 13970.06
Zomato Gross Profit Table3 in Rs. Cr from FY 2018-2019 (PreCovid)
(Source:Zomato3)

1. https://covid19.who.int/ World Health Organisation

2. https://www.planify.in/research-report/swiggy/financial/ Planify
3. https://www.zomato.com/investor-relations/financials Zomato
 6

Zomato Gross Profit

16000
14000
12000
10000
8000
6000
4000
2000
0
FY 2018 FY 2019

Gross Profit

Zomato Gross Profit Chart3 in Rs. Cr from FY 2018-2019 (Pre- Covid)

(Source:Zomato3)

Financial
FY 2018 FY 2019
Year
Net Income -1040.23 -5730.98
Zomato Net Income Table 4 in Rs. Cr from FY 2018-2019 (PreCovid)
(Source:Zomato3)

Zomato Net Income

0
FY 2018 FY 2019
-1000

-2000

-3000

-4000

-5000

-6000

-7000

Net Income

Zomato Net Income Chart 4 in Rs. Cr from FY 2018-2019 (PreCovid)

(Source:Zomato3)

1. https://covid19.who.int/ World Health Organisation

2. https://www.planify.in/research-report/swiggy/financial/ Planify
3. https://www.zomato.com/investor-relations/financials Zomato
 7

o Covid Years
During covid years Swiggy faced a greater fall as concluded by
Deeksha Shetty and Prof. Jayadatta S (Review Literature 4) as due to
lock down employees and consumers both were locked down in their
homes and consumers feared ordering food from outside and cooked
their own food. But as the lockdown slowly started to be loosen by the
Government of India, Swiggy had a recovery in net income(loss) in
compare to Financial Year 2019 but with less sales compare to
Financial Year 2019. But Mid covid when employees were able to
deliver food but consumers were still stuck at their homes due to
lockdown Swiggy had the highest sales but still greater loss.

Financial
FY 2020 FY 2021 Year FY 2019
Gross Profit 1,257.80 3,639.40 2,675.90
Swiggy Gross Profit table 5 in Rs. Cr. from FY 2019- 2021 (Covid) (Source: Planify2)

Swiggy Gross Profit

4,000.00

3,500.00

3,000.00

2,500.00

2,000.00

1,500.00

1,000.00

500.00

0.00
FY 2019 FY 2020 FY 2021

Swiggy gross profit Chart 5 from FY 2019- 2021 (Covid) (Source: Planify)

Financial Year
FY 2019 FY 2020 FY 2021
Net Income (2,363.60) (3,908.50) (1,310.10)
Swiggy Net Income table 6 in Rs. Cr. from FY 2019- 2021 (Covid) (Source: Planify2)

1. https://covid19.who.int/ World Health Organisation

2. https://www.planify.in/research-report/swiggy/financial/ Planify
3. https://www.zomato.com/investor-relations/financials Zomato
 8

Swiggy Net Income

0.00
FY 2019 FY 2020 FY 2021
-500.00

-1,000.00

-1,500.00

-2,000.00

-2,500.00

-3,000.00

-3,500.00

-4,000.00

-4,500.00

Swiggy Net Income Chart 6 from FY 2019- 2021 (Covid) (Source: Planify)

During covid years Zomato faced a greater fall as concluded by

Deeksha Shetty and Prof. Jayadatta S (Review Literature 4) as due to
lock down employees and consumers both were locked down in their
homes and consumers feared ordering food from outside and cooked
their own food. But as the lockdown slowly started to be loosen by the
Government of India, Swiggy had a recovery in net income(loss) in
compare to Financial Year 2019 but with less sales compare to
Financial Year 2019. But Mid covid when employees were able to
deliver food but consumers were still stuck at their homes due to
lockdown Swiggy had the highest sales but still greater loss.

Financial
FY 2020 FY 2021 Year FY 2019
Gross Profit 13970.06 27427.39 21184.24
Zomato Gross Profit table 7 in Rs. Cr. from FY 2019- 2021 (Covid) (Source:
Zomato)

1. https://covid19.who.int/ World Health Organisation

2. https://www.planify.in/research-report/swiggy/financial/ Planify
3. https://www.zomato.com/investor-relations/financials Zomato
 9

Zomato Gross Profit

30000

25000

20000

15000

10000

5000

0
FY 2019 FY 2020 FY 2021

Zomato gross profit Chart 7 from FY 2019- 2021 (Covid) (Source: Zomato)

Financial Year FY 2019 2020FY FY 2021 Net

Income (5730.98) (23628) (8224.78)

Zomato Net Income table 8 in Rs. Cr. from FY 2019- 2021 (Covid) (Source: Zomato)

Zomato Net Income

0
FY 2019 FY 2020 FY 2021

-5000

-10000

-15000

-20000

-25000

1. https://covid19.who.int/ World Health Organisation

2. https://www.planify.in/research-report/swiggy/financial/ Planify
3. https://www.zomato.com/investor-relations/financials Zomato
 10

Zomato Net Income Chart 8 from FY 2019- 2021 (Covid) (Source: Zomato)

o Post Covid

In Post Covid Era Swiggy did experienced a rise in sales, they were at the
peak but the loss was greater than Covid era in fact almost close to the peak
loss in FY2020.

Financial FY 2022 Year FY

2021
Gross Profit 2,675.90 6,119.80
Swiggy Gross Profit table 9 in Rs. Cr. from FY 2021- 2022 (Post Covid)
(Source: Planify2)

Swiggy Gross Profit

7,000.00

6,000.00

5,000.00

4,000.00

3,000.00

2,000.00

1,000.00

0.00
FY 2021 FY 2022

Swiggy gross profit Chart 9 from FY 2021- 2022 (Post Covid) (Source: Planify)

Financial
FY 2021 FY2022
Year
Net Income (1,310.10) (3,280.50)

Swiggy Net Income table 10 in Rs. Cr. from FY 2021- 2022 (Post Covid) (Source:
Planify2)

1. https://covid19.who.int/ World Health Organisation

2. https://www.planify.in/research-report/swiggy/financial/ Planify
3. https://www.zomato.com/investor-relations/financials Zomato
 11

Swiggy Net Income

0.00
FY 2021 FY2022
-500.00

-1,000.00

-1,500.00

-2,000.00

-2,500.00

-3,000.00

-3,500.00

Swiggy Net Income Chart 10 from FY 2021- 2022 (Post Covid) (Source: Planify) In
Post Covid Era Zomato had the highest sales but their loss was also moderately high.

Financial FY2022 Year

FY 2021
Gross Profit 21184.24 46,873

Zomato gross profit Table 11 from FY 2021- 2022 (Post Covid) (Source: Zomato)

Zomato Gross Profit

50000
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
FY 2021 FY2022

Zomato gross profit Chart 11 from FY 2021- 2022 (Post Covid) (Source: Zomato)

1. https://covid19.who.int/ World Health Organisation

2. https://www.planify.in/research-report/swiggy/financial/ Planify
3. https://www.zomato.com/investor-relations/financials Zomato
 12

Financial
FY 2021 FY2022
Year
Net Income (8224.78) (12,225)

Zomato Net Income Table 12 from FY 2021- 2022 (Post Covid) (Source: Zomato)

Net Income
0
FY 2021 FY2022
-2000

-4000

-6000

-8000

-10000

-12000

-14000

Zomato Net Income Chart 12 from FY 2021- 2022 (Post Covid) (Source: Zomato)

o Overview
In overall view instead of having a positive impact or a boost Swiggy was
negatively affected. If covid had not taken place and all the other factors
would have been constant then Swiggy would have been in better financial
positions. They could have secured more revenue and they could have secure
lesser loss. Their current conditions have worsened since covid outbreak and
they are experiencing a tough time in recovery.

FY 2019
Financial Year 2015FY 2016FY 2017FY 2018FY FY 2020 FY 2021 FY 2022

Gross Profit 0.12 23.57 145.05 461.34 1,257.80 3,639.40 2,675.90 6,119.80

Swiggy Gross Profit table 13 in Rs. Cr. from FY 2015- 2022 (Overall) (Source:
Planify2)

1. https://covid19.who.int/ World Health Organisation

2. https://www.planify.in/research-report/swiggy/financial/ Planify
3. https://www.zomato.com/investor-relations/financials Zomato
 13

Swiggy Gross Profit

7000

6000

5000

4000

3000

2000

1000

0
FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022

Swiggy Gross Profit Chart 13 in Rs. Cr. from FY 2015- 2022 (Overall)
(Source: Planify2)

Financial FY FY FY FY FY 2019 FY 2020 FY 2021 FY 2022 2016 2017 2018

Year 2015
Net Income (2.08) (137.18) (205.17) (397.3) (2,363.60) (3,908.50) (1,310.10) (3,280.50)
Swiggy Net Income table 14 in Rs. Cr. from FY 2015- 2022 (Overall)
(Source: Planify2)

Net Income
0
FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
-500

-1000

-1500

-2000

-2500

-3000

-3500

-4000

-4500

Swiggy Net Income Chart 14 in Rs. Cr. from FY 2015- 2022 (Overall)
(Source: Planify2)

1. https://covid19.who.int/ World Health Organisation

2. https://www.planify.in/research-report/swiggy/financial/ Planify
3. https://www.zomato.com/investor-relations/financials Zomato
 14

In Overall View for Zomato, instead of having a positive impact or boost the
sales and net income came back into course which it originally would have
been if there was no covid outbreak and other factors were constant.

Financial FY FY 2019
2018 FY 2020 FY 2021 FY2022 Year
Gross Profit 4850.94 13970.06 27427.39 21184.24 46,873

Zomato Gross Profit table 15 in Rs. Cr. from FY 2018- 2022 (Overall)
(Source: Zomato)

Zomato Gross Profit

50000
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
FY 2018 FY 2019 FY 2020 FY 2021 FY2022

Zomato Gross Profit Chart 15 in Rs. Cr. from FY 2018- 2022 (Overall)
(Source: Zomato)

Financial Year FY 2018 FY 2019 2020FY FY 2021 FY2022

Net Income (1040.23) (5730.98) (23628) (8224.78) (12,225)

Zomato Net Income table 16 in Rs. Cr. from FY 2018- 2022 (Overall)
(Source: Zomato)

1. https://covid19.who.int/ World Health Organisation

2. https://www.planify.in/research-report/swiggy/financial/ Planify
3. https://www.zomato.com/investor-relations/financials Zomato
 15

Zomato Net Income

0
FY 2018 FY 2019 FY 2020 FY 2021 FY2022

-5000

-10000

-15000

-20000

-25000

Zomato Net Income Chart 16 in Rs. Cr. from FY 2018 - 2022 (Overall)
(Source: Zomato)

 Conclusion

By looking at Tables 13,14,15,16 and Charts 13,14,15,16 we can

conclude that Null Hypothesis H0 stands true as after covid there is
negative impact on Swiggy and neutral impact on Zomato. In case
there was no covid outbreak and other factors stand constant Swiggy
would have been in better condition. For Zomato there is no effect after
covid. In case there was no covid outbreak and other factors being
constant it would have been in the same course as it is now. There is no
change in consumer behavior which was or can be significantly related
to Covid 19.
Hence, predictions and conclusions of K. M. Kiran Raj and K. G. Nandha
Kumar (Review Literature 1), Ashish Kumar (Review Literature 2) and Deeksha
Shetty and Prof. Jayadatta S (Review Literature 4) stand false.

 Biblography
o https://covid19.who.int/ World Health Organisation o
https://www.planify.in/research-report/swiggy/financial/ Planify
o https://www.zomato.com/investor-relations/financials Zomato

1. https://covid19.who.int/ World Health Organisation

2. https://www.planify.in/research-report/swiggy/financial/ Planify
3. https://www.zomato.com/investor-relations/financials Zomato