Swiggy or Zomato Which is Better?

The Indian food delivery market mainly operates under two big companies: Zomato and Swiggy. Both platforms provide almost similar services and serve millions of consumers the convenience of online food ordering.

However, the competition between Zomato and Swiggy is not always equal. For example, Zomato gained an advantage by launching the Zomato Pro subscription service, which provides discounts and exclusive deals to consumers.

Swiggy launched its version, Swiggy One, to retain its customer base. However, both platforms still face challenges in making profitability, as heavy discounting and high customer acquisition costs reduce their margins.

The demand for online food delivery has grown in demand due to using smartphones and changing consumer habits. This has helped both Zomato and Swiggy expand rapidly. There is lots of competition in the market; people often ask, "Swiggy or Zomato, which is better?" or "Which is better, Swiggy or Zomato?"

However, they also face challenges from new competitors and changing regulatory dynamics. This competitive landscape has expanded into grocery diversification, while offerings, with Swiggy expanding into grocery delivery and Zomato focusing on cloud kitchens.

As the competition between Zomato and Swiggy continues, their growing market share brings both opportunities and challenges to the industry.

Let's take a closer look and try to understand which is better, Swiggy or Zomato.

About Zomato

Founded in 2008, Zomato Limited has become a major player in India's online food delivery and restaurant discovery market.

By FY24, it had established itself as a market leader, serving millions of customers in India and abroad. It offers a smooth platform for food delivery, restaurant booking, reviews, cloud kitchens, and quick commerce, meeting a wide range of dining needs.

Zomato has expanded beyond India, operating in the Middle East, Southeast Asia, and the United States, with the help of many delivery partners and restaurants. It also leads in the cloud kitchen with the Zomato Kitchen initiative, allowing restaurant brands to reach customers without opening physical outlets. Through strategic acquisitions and partnerships, Zomato continues to grow in the competitive food-tech sector.

About Swiggy

Swiggy is also India's leading online food delivery platform. Founded in 2014, it is known for its speed, convenience, and customer service.

Swiggy has evolved into a comprehensive food-tech company, offering services like Swiggy Instamart (grocery delivery), Swiggy Genie (pickup/drop-off services), and Swiggy Dineout (restaurant reservations).

It delivers food from both local eateries and major chains, focusing on speed and quality.

The company operates a strong logistics network, which includes warehouses and delivery partners, to ensure timely deliveries.

Additionally, Swiggy has taken the lead in the dark kitchen sector, partnering with restaurant brands to provide delivery-only services.

Its Swiggy One subscription model enhances user loyalty, while the introduction of Swiggy Instamart addresses the increasing demand for grocery delivery. Through constant innovation and strategic expansion, Swiggy is preparing itself for long-term growth success in a competitive market.

Swiggy and Zomato Business Strategies

Swiggy started as a food delivery service but later expanded into grocery delivery with Instamart, local errands with Swiggy Genie, and quick commerce.

Zomato started as a restaurant-finding platform and later expanded into food delivery, cloud kitchens, and restaurant subscriptions with Zomato Pro.

Swiggy makes income from food delivery, grocery services, and its Swiggy One subscription, which offers benefits for food and grocery orders.

On the other hand, Zomato earns its revenue mainly from delivery commissions, restaurant ads, and Zomato Pro subscriptions. Apart from this, it also focuses on cloud kitchens.

Zomato Pro provides dining discounts, while Swiggy One offers benefits for users who want convenience across multiple services.

Zomato focuses on partnering with restaurants and using technology for food delivery, whereas Swiggy prioritizes speed and focuses on delivering food, groceries, and local services.

Zomato is strong in food discovery, and Swiggy's wider range of services makes it a more comprehensive platform. While Swiggy, which is still privately funded, is expanding its services across food, grocery, and local services.

About Financial Performance

Swiggy and Zomato have seen strong revenue growth in the past three years. Swiggy's revenue increased by 42.4% in FY23 and 33.5% in FY24, reaching Rs 116.34 billion by FY24. Zomato, however, grew even faster, with revenue rising 68.9% in FY23 and 71.1% in FY24, crossing Rs 121.14 bn by FY24. Both companies still face losses, but Swiggy has managed to reduce its losses from Rs 36.29 bn in FY22 to Rs 23.50 bn in FY24, reflecting a 43.8% decline in losses in FY24.

Conclusion - Swiggy or Zomato

In the fast-changing food delivery market, both Zomato and Swiggy have established themselves as leaders, each with its own unique strengths. Zomato has a big market share and revenue growth, with more restaurant partners and a bigger user base. Both companies have shown resilience, but they still struggle with profitability, as a net loss still continues. However, Swiggy is expanding quickly into quick commerce and is more efficient in customer acquisition, making it a strong contender.