In the fiercely competitive Indian food delivery market, Zomato and Swiggy continue to dominate, but the balance of power has shifted in 2024. As of mid-2024, Zomato has solidified its lead over Swiggy, capturing a larger share of the market and showcasing stronger growth metrics.
Market Share Overview
Zomato’s Growing Dominance
Zomato currently holds approximately 57% of the food delivery market share in India, an increase from 55% in the previous year. This growth has been steady, with Zomato consistently gaining ground on its rival. In contrast, Swiggy’s market share has declined to 43%, down from 45%.
Key Factors Behind Zomato’s Lead
Several factors have contributed to Zomato’s expanded market share:
- Revenue Growth: Zomato’s gross order value (GOV) saw a significant increase, growing 36% year-on-year, compared to Swiggy’s 26% growth. This difference highlights Zomato’s more aggressive expansion and better customer retention strategies.
- Profitability: Zomato has not only grown faster but has also managed to achieve profitability, reporting a positive EBITDA of $5 million last year. On the other hand, Swiggy continues to operate at a loss, which has widened in recent quarters.
- Quick Commerce: Zomato’s acquisition of Blink has given it a strong foothold in the quick commerce sector, where it now leads with a 50% larger market share than its nearest competitors.
Challenges for Swiggy
Swiggy, despite its early dominance in the food delivery market, has faced challenges in maintaining its lead. The company’s losses have increased, and its market share has eroded due to Zomato’s aggressive strategies. While Swiggy is also expanding in quick commerce through its Instamart division, it lags behind Blinkit in scale and efficiency.
FAQ
1. What is the current market share of Zomato vs. Swiggy in 2024?
Zomato holds about 57% of the market, while Swiggy has around 43%.
2. Why is Zomato leading over Swiggy in 2024?
Zomato’s superior growth in gross order value, profitability, and expansion in quick commerce has contributed to its lead.
3. How has Swiggy responded to Zomato’s growth?
Swiggy has been focusing on expanding its Instamart service and improving its profitability, but it has struggled to keep up with Zomato’s growth pace.
4. What role does Blinkit play in Zomato’s market position?
Blinkit has significantly bolstered Zomato’s presence in the quick commerce sector, contributing to its overall market leadership.
5. What are the prospects for Swiggy?
Swiggy needs to focus on improving profitability and regaining market share in both food delivery and quick commerce to compete effectively with Zomato.