Coca Cola to invest in food-ordering start-up Thrive, Zomato, Swiggy may face tough competition

New Delhi (India), 17th April 2023: Coca-Cola, a well-known soft drink manufacturer, is considering investing in an Indian startup for the first time ever.

The beverage behemoth will acquire a small equity in Thrive which is a direct rival of meal-delivery services Zomato and Swiggy. More than 5,500 eateries already have a collaboration with Thrive.

The strategic investment will provide Coca-Cola a distinct advantage over competitors as it will encourage customers to use the Thrive app to purchase solely Coca-Cola beverages in addition to their food orders, assist them in customising their orders, market package deals and meal combos, and push loyalty codes.

Coca-Cola’s investment will increase customer engagement with restaurants and consumers. Additionally, because Thrive has a sizeable base of mid-sized restaurant partners serving a variety of cuisines, it will grant it access to consumer data.

According to insiders with firsthand knowledge of the process, Coca-Cola’s acquisition of a minority stake in Thrive will represent its first investment in a startup in India.

On the other hand, the food ordering website Thrive was founded by the businessmen Dhruv Dewan, Karan Chechani, and Krishi Fagwani barely three years ago. The platform only charges one-fourth the commissions from restaurants, compared to the 18–25% charged by Zomato and Swiggy, which has contributed to its success among the restaurant base.