Swiggy vs. Zomato: A Story of Competition and Growth

Swiggy and Zomato are household names in India’s food delivery and quick commerce sectors, constantly battling to capture consumer loyalty and market dominance. While Zomato appears to have the upper hand in several areas, Swiggy’s innovative DNA and strategic initiatives could be the wildcard that reshapes the game. Let’s dive into the numbers and strategies that define these two giants.

Market Overview

India’s food delivery market is booming, projected to surpass $15 billion by 2025. Alongside, quick commerce—a category Swiggy pioneered—is evolving rapidly. Both Swiggy and Zomato have played pivotal roles in this growth, influencing consumer behavior and setting industry standards.

Swiggy vs. Zomato: Key Metrics

Market Leadership

Zomato’s market share has climbed from 54% in FY22 to 58% in 1QFY25, showcasing its consistent dominance. However, Swiggy’s focused execution and innovation hint at untapped potential.

User Base and Restaurant Partnerships

Swiggy has expanded its user base by 42% and restaurant partnerships by 73%. In comparison, Zomato recorded a 38% growth in users and 53% in partnerships. While Zomato leads, Swiggy’s figures reflect a solid growth trajectory.

Gross Order Value (GOV)

Zomato continues to outpace Swiggy in GOV, underlining its stronghold in order volume. Yet, Swiggy’s GOV per MTU is approximately 6% higher, indicating a loyal and high-spending user base.

Average Monthly Transacting Users (MTU)

Zomato leads with 20.3 million MTUs compared to Swiggy’s 14.03 million. However, Swiggy’s higher GOV per MTU and better order frequency emphasize its monetization strength.

Profitability and Take Rates

Zomato’s Stable Margins

Zomato’s food delivery business has stabilized, with an EBITDA margin of 3.4%. This profitability reflects a mature and efficient operation.

Swiggy’s Monetization Advantage

Swiggy boasts better take rates than Zomato, driven by higher ad sales from restaurant partners. This advantage positions Swiggy as a platform capable of monetizing effectively, even amidst stiff competition.

Quick Commerce: Blinkit vs. Instamart

Blinkit’s Stronger Start

Blinkit, acquired by Zomato, leads in quick commerce with 639 active dark stores across 44 cities. It boasts an 81% higher GOV than Swiggy’s Instamart as of 1QFY25.

Instamart’s Competitive Edge

While Instamart lags in scale, its integrated app approach allows for seamless user experiences. This synergy could prove advantageous in differentiating SKUs and strategies.

Profitability Analysis

Blinkit’s adjusted EBITDA margin of -0.1% significantly outperforms Instamart’s -11.7%, driven by a higher AOV and take rate.

Swiggy’s Innovation DNA

Integrated App Approach

Swiggy’s unified app strategy fosters faster innovation, exemplified by Instamart’s emergence as a category creator.

Bolt: 10-Minute Food Delivery

Swiggy is betting on ultra-fast delivery through Bolt, promising food in 10-15 minutes. This bold experiment could redefine consumer expectations.

Lessons from Zomato's Pilot

Zomato’s failed pilot for 10-minute delivery underscores the complexities of scaling such a service. Swiggy, however, has the expertise and infrastructure to succeed.

Challenges and Opportunities

Competition from Emerging Players

Zepto and other disruptors are aggressively entering the market, intensifying the competition for wallet share. Quick commerce remains in its infancy, offering ample opportunities for differentiation. The race is far from over.

Future Outlook

The future of food delivery and quick commerce lies in innovation, customer loyalty, and operational efficiency. Swiggy’s knack for pioneering new categories and Zomato’s robust execution make them formidable contenders in an evolving landscape.

The Swiggy vs. Zomato battle is far from settled. While Zomato leads in key metrics and profitability, Swiggy’s innovation-driven DNA could tilt the scales. Both players have unique strengths, and the true winner will be the one who adapts and innovates faster in the years to come.

Also Read: