Swiggy Versus Zomato - Sizing Up The Giants: Motilal Oswal

Motilal Oswal Report

We analyze key metrics from Swiggy’s recently filed draft red herring prospectus and compare them with those of Zomato Ltd. A cursory glance through the numbers indicates that Zomato now has market leadership in food delivery and quick commerce, the two key battleground areas for the players.

While Zomato is undeniably Primus inter pares, the war for the wallet share of the urban affluent consumer has just begun, and it is too early to call the game.

Zomato has been gaining market share in food delivery, but on the basis of gross order value/monthly transacting user, Swiggy’s cohorts appear more mature and stickier. In quick commerce, despite Swiggy’s Instamart inventing the category, Blinkit has taken an early lead and Zepto continues to execute well.

However, the market is nascent, and enough avenues exist to differentiate on stock keeping units and strategy, making it too early to declare winners (or losers).

Swiggy’s approach of an integrated app offering versus Zomato’s multi-app approach (both at the back and the front end) helps it innovate faster (Instamart was born out of a similar synergy); Swiggy could again be at the forefront of food delivery innovation through Bolt, its 10-minute food delivery platform.

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