Zomato Beats Swiggy To Become #1 Food Delivery App In India! Blinkit Acquisition Was The Gamechanger?
Since its very inception, the $5-billion Indian food delivery market has been nefariously competitive. Major players like Zomato & Swiggy are vying for dominance in the market.
With both holding almost 50 percent market share, the competition has been stiff over the years.
However now it seems that the needle is pointing towards Zomato.
Zomato Steering Ahead with 55% Share
As per the brokerage firm Bernstein India “The Indian online food delivery market has been a steady duopoly for a while. However, that has started to change with Zomato expanding share to around 55 percent in food delivery”.
The report said that it is through its stronger execution in the food delivery business, which grew 55 percent on-year, and investing in the quick commerce business that Zomato achieved this feat.
However when it comes to the quick commerce, Swiggy trumped Zomato. The acquisition of Blinkit earlier this year, disliked by investors but seen as imperative by the company, has helped it close the gap with Swiggy in the quick commerce segment and steal a march on overall market share.
Bernstein India said that “Zomato is our top pick for the quarter driven by acceleration of the core business, gaining market share, better profitability outlook and reduced valuation premium to global peers”.
On the NSE, shares of Zomato were down 2.1 percent at Rs 63.1 at 12.13 pm.
More About Zomato & Swiggy
Founded in 2008 by Deepinder Goyal and Pankaj Chaddah, Zomato is a Indian multinational restaurant aggregator as well as food delivery company. It provides information, menus as well as user reviews of restaurants as well as food delivery options.
Speaking of the presence as of 2019 data, it is present in 24 countries and over 10000 cities.
Swiggy came later in 2014, Founded by Sriharsha Majety, Nandan Reddy and Rahul Jaimini. It is an Indian online food ordering and delivery platform. Speaking of presence, it is resent in 500 Indian cities as 2021 data.
In addition to food delivery, Swiggy, through its “Instamart” provides on demand groceries deliveries.