Comparison of Zomato and Swiggy in the Food Delivery Race

July 15, 2024

Table of content

Feeling hungry but can’t decide between Swiggy or Zomato? It’s an everyday battle.

The food delivery industry in India is experiencing a record boom. With a market value of $4.66 billion in 2020, it's projected to skyrocket to $21.41 billion by 2026, boasting an impressive CAGR of 28.94%​​. This growth was possible due to the changing lifestyles, human development, and preoccupied schedules of individuals and families worldwide and in India.  

Founded in 2008, Zomato quickly became a pioneer in the food tech space. Swiggy, which entered the scene in 2014, wasn’t far behind, rapidly gaining traction. According to data from Swiggy's largest shareholder, Prosus, in the financial year 2023, Swiggy's gross merchandise value (GMV) was $2.6 billion, while Zomato's GMV was $3.2 billion.

Swiggy and Zomato have not only transformed food delivery but have also pushed the envelope regarding service quality, user experience, and technological innovation. That’s why the comparison of Swiggy vs Zomato isn’t just a topic of casual debate; it's a critical analysis for stakeholders in the food industry. 

This article will help you to get a brief idea of these two market leaders. 

Number of Cities Covered by Zomato and Swiggy

Zomato

Zomato has established a notable presence by functioning in more than 560 cities throughout India. This extensive reach encompasses major urban centers such as Mumbai, Delhi, and Bangalore, as well as smaller towns and tier-2 and tier-3 cities.

If you live in Pune or a quieter town like Nashik, Zomato can deliver your favorite meals to your doorstep. To meet the increasing demand, they are expanding their delivery service to less urban areas. 

Zomato has also started a trial for a 10-minute delivery service in some cities to improve delivery speed and convenience.

Swiggy

Swiggy has established operations in more than 500 cities, demonstrating a commitment to swift delivery and an extensive selection of dining establishments. Whether located in the urban center of Hyderabad or the coastal city of Kochi, Swiggy aims to provide its customers with a wide range of restaurant choices.

For example, they now have Swiggy Instamart, which can deliver groceries quickly and is available in 19 cities. So, if you suddenly need some fresh veggies or a snack, Swiggy Instamart can deliver them to you in less than 30 minutes. 

They also have another service called Swiggy Genie, which lets you send packages to different parts of the city, and this is available in 68 cities.

As both Zomato and Swiggy continually expand their reach, more franchise opportunities will open up in various cities. Kouzina Food Tech, a leading Cloud Kitchen in India, can help you tap into this growing market efficiently.

Service Innovations by Zomato & Swiggy

Zomato and Swiggy are coming up with new ideas to attract cost-conscious customers using online food delivery platforms. Let’s understand this in detail:

Feature

Zomato

Swiggy

Unique Features and Services

- Zomato Gold: Offers dining and delivery discounts.

- Zomato Hyperpure: Supplies fresh ingredients to restaurants.

- Zomato Pro: Enhanced benefits over Zomato Gold, including priority delivery.

- Zomato Market: Delivered groceries during the pandemic.

- Swiggy Instamart: Quick grocery delivery service available in multiple cities.

- Swiggy Genie: Pick-up and drop service for packages.

- Swiggy Go Courier service for various items.

- Swiggy One: Membership program offering benefits across multiple services, including food and grocery deliveries.

Innovations Introduced

- 10-minute Delivery Pilot: Aimed at ultra-fast food delivery in select cities.

- Contactless Dining: Introduced during the pandemic for safer dining experiences.

- Live Order Tracking: Real-time tracking of orders.

- Swiggy POP: Curated single-serve meals for quick and affordable dining.

- Swiggy Daily: Subscription-based home-style meal service.

- Swiggy HealthHub: Health-focused food choices.

Future Technology Investments

- Robotics and Drones: Exploring the use of drones for faster deliveries.

- Advanced AI: For better customer personalization and efficient delivery logistics.

- Sustainability Initiatives: Investments in eco-friendly packaging and reducing carbon footprint.

- AI and Machine Learning: For optimizing delivery routes and personalizing customer experiences.

- Autonomous Deliveries: Investing in drone and robot delivery systems.

- AI Enhancements: To further streamline delivery operations and improve customer service.

- Expansion of Quick Commerce: Continued investment in Swiggy Instamart and other quick commerce services.


Also Read: Selling Homemade Food Online Using Zomato

User Experience and Interface of Zomato and Swiggy

Zomato and Swiggy both platforms have simple and easy-to-use layouts, making it easy to find what you need. They both have a search bar with an option to search using your voice. Additionally, you can find the address at the top left and your user profile at the top right. Here’s a brief detail about it:

Analysis of UI Designs Across Apps

Zomato:

  • Design Philosophy: Zomato's app features a clean, user-friendly interface that emphasizes simplicity and ease of navigation. The home screen is designed to provide quick access to various food options, deals, and user favorites.
  • Visual Appeal: The app uses bright colors and high-quality images to make the browsing experience more engaging. Icons and buttons are strategically placed to minimize user effort.
  • Functional Design: Key features such as search, filters, and sorting options are easily accessible. The app also supports smooth transitions and quick loading times, enhancing the user experience.

Swiggy:

  • Design Philosophy: Swiggy's app is designed with a focus on efficiency and speed. The interface is straightforward, with prominent placement of search bars and category tabs to streamline the ordering process.
  • Visual Appeal: Swiggy uses a more minimalist color scheme than Zomato, focusing on functionality over aesthetics. The app's layout is intuitive, with clear sections for different food and services.
  • Functional Design: Swiggy prioritizes user convenience with features like quick reordering of past orders and a highly responsive interface. The app also integrates real-time order tracking and delivery updates prominently.

Customer-Centric Features and Offerings

Zomato:

  • Zomato Gold/Pro: Offers exclusive discounts and benefits on dining and delivery, enhancing customer loyalty.
  • Hyperpure: Provides high-quality ingredients to partner restaurants, ensuring better food quality for customers.
  • Dineout Integration: Users can make table reservations directly through the app, offering a seamless dining experience.

Swiggy:

  • Swiggy Super: A membership program offering benefits like free deliveries and exclusive discounts for frequent users.
  • Swiggy Genie: Provides a pick-up and drop service for various items, adding convenience for users.
  • Instamart: A quick commerce service that delivers groceries and essentials in under 30 minutes, catering to users' everyday needs.

Ordering Experience and Personalization

Zomato:

  • Personalized Recommendations: Uses AI to suggest restaurants and dishes based on user preferences and past orders.
  • Order Customization: Allows users to customize their orders with specific instructions for restaurants, ensuring a tailored dining experience.
  • User Reviews and Ratings: Provides detailed reviews and ratings from other customers to help users make informed choices.

Swiggy:

  • Quick Reordering: Features an option to quickly reorder past meals, making the process faster for repeat customers.
  • Real-Time Tracking: Offers live tracking of orders, providing users with accurate delivery times and updates.
  • Custom Meal Plans: Introduces Swiggy Daily, a subscription-based service offering personalized meal plans for regular users.

Both Zomato and Swiggy have easy-to-use websites and apps that make ordering food super easy. Zomato's website and app look nice and are easy to use, while Swiggy's focus is on making things fast and practical. They both offer things like special membership programs and real-time order tracking to keep customers happy.

Also Read: How to Partner and Register Restaurant with Swiggy in Easy Steps

Marketing and Community Engagement

Zomato and Swiggy use a combination of marketing strategies that have helped them attract more customers and increase their sales. Let's take a closer look at how they do this:

Different Marketing Strategies by Zomato and Swiggy

Zomato:

  • Social Media Campaigns: Zomato is famous for its engaging and humorous social media presence. For example, during the 2019 Cricket World Cup, Zomato ran a campaign featuring food-related puns and cricket references, which went viral and significantly boosted its brand visibility.
  • Integrated Marketing: Zomato uses a mix of digital, TV, and outdoor advertising. Their "Har Customer Hai Star" campaign featured real users sharing their Zomato experiences, creating a sense of community and trust. You might have seen their billboard ads across cities like Mumbai and Delhi.
  • Partnerships and Sponsorships: Zomato has partnered with various events and celebrities. For example, they sponsored the IPL, leveraging the massive viewership to promote their services. This partnership helped Zomato reach cricket fans all over India, from Chennai to Kolkata.

Swiggy:

  • Creative Ads: Swiggy's marketing includes relatable and humorous ads. Their "What a delivery!" campaign showcased the extremes delivery partners go to ensure timely deliveries, resonating well with their audience. These ads are often seen on TV and online platforms, making them a household name.
  • Social Media Engagement: Swiggy engages users on social media through interactive posts and contests. Their #SingWithSwiggy challenge encouraged users to create food-related songs, boosting engagement and visibility. This campaign saw participation from cities like Bangalore and Hyderabad.
  • Influencer Collaborations: Swiggy collaborates with influencers and food bloggers to reach a larger audience. By showcasing their real-time ordering experiences, Swiggy taps into the influencer's follower base. For instance, popular food bloggers in Pune and Jaipur often promote Swiggy's services.

Customer Loyalty Programs and Campaigns

Zomato:

  • Zomato Gold/Pro: Zomato Gold offers exclusive dining and delivery discounts. For example, members get a 1+1 offer on food and 2+2 on drinks at partner restaurants. This program has been highly popular in cities like Bangalore and Gurgaon, attracting users looking for value deals.
  • Foodie Meetups: Zomato organizes community meetups for food enthusiasts. These events allow users to explore new restaurants and cuisines while sharing their experiences with other food lovers. For example, a recent meetup in Hyderabad brought together local foodies to discover the best biryanis in the city.
  • Review Contests: Zomato frequently runs contests where users can win prizes for the best reviews or photos of their food experiences. This not only increases engagement but also enriches the platform with valuable content. Users in cities like Ahmedabad and Chandigarh actively participate in these contests.

Swiggy:

  • Swiggy Super: This membership program offers benefits like free deliveries and no surge pricing. For instance, during peak hours or bad weather in cities like Mumbai and Chennai, members do not face additional delivery charges, greatly enhancing customer loyalty.
  • Swiggy Launchpad: To support new restaurant partners, Swiggy runs the Launchpad program, offering marketing support and discounted commission rates for the first few months. This initiative helps new partners gain visibility and attract customers quickly, especially in growing markets like Indore and Lucknow.
  • Innovative Campaigns: Swiggy's "Swiggy Santa" campaign during Christmas allowed users to send surprise gifts and food items to friends and family through the app, creating a unique and memorable user experience that fostered brand loyalty. This campaign was a hit in festive cities like Goa and Coimbatore.

Also Read: How do I List My Restaurant on Zomato

Pricing and Financials of Zomato and Swiggy

Zomato focuses on improving the user experience with programs like Zomato Pro and expanding its quick delivery service. On the other hand, Swiggy is expanding its services and doing a lot of advertising. The below table will give you a brief idea about their pricing and financials:

Feature

Zomato

Swiggy

Pricing Models and Delivery Fees

- Basic Delivery Fees: Fees typically range from ₹20 to ₹50, depending on the distance and demand.

- Surge Pricing: Higher delivery fees during peak hours and bad weather.

- Zomato Pro/Gold: Membership offers discounts on food orders and delivery charges, costing around ₹200 for three months.

- Basic Delivery Fees: Usually between ₹20 to ₹50, influenced by distance and order time.

- Surge Pricing: Increased fees during high-demand periods.


- Swiggy One: Membership providing free deliveries and exclusive discounts, with a price range of ₹249 to ₹749 for three months.

Revenue and Losses

- Revenue (FY23): ₹7,079.4 crores.

- Expenses (FY23): ₹8,775.3 crores.

- Net Loss (FY23): ₹971 crores, down from ₹1,222.5 crores in FY22.

- Growth Factors: Increased revenue driven by the relaunch of Zomato Gold and expansion into quick commerce with Blinkit.

- Revenue (FY22): ₹5,705 crores.

- Expenses (FY22): ₹9,748.7 crores.

- Net Loss (FY22): ₹3,628.9 crores, up from ₹1,616.9 crores in FY21.

- Growth Factors: Significant revenue growth attributed to expanded services like Instamart and increased advertising spending.


Also Read: Best Food To Order From Zomato

Sustainability and Social Responsibility

Both Zomato and Swiggy are working to be more environmentally friendly and to support their communities by reducing waste, using eco-friendly practices, and giving back to the community. Let's take a closer look at what they're doing.

Efforts to Reduce Waste and Plastic Use

Zomato:

  • Sustainable Packaging: Zomato has initiated programs to reduce plastic use by promoting biodegradable and eco-friendly packaging among its restaurant partners. In cities like Bangalore and Mumbai, they have introduced initiatives where users can opt out of receiving cutlery and other single-use plastics with their orders.
  • Eco-Friendly Practices: Zomato launched a "Climate Conscious Delivery" option, where customers can choose deliveries made on bicycles or electric vehicles, reducing the carbon footprint associated with their orders.
  • Waste Management: The company has partnered with local waste management companies to ensure proper disposal and recycling of food waste, particularly in large urban centers like Delhi and Kolkata.

Swiggy:

  • Plastic Reduction: Swiggy has implemented a "No Plastic" option, allowing users to avoid plastic cutlery. In cities like Hyderabad and Chennai, they work with restaurant partners to switch to sustainable packaging solutions.
  • Sustainable Delivery: Swiggy has been piloting electric scooters for deliveries in several cities, aiming to reduce emissions and promote green transportation.
  • Collaborations for Recycling: Swiggy collaborates with waste management startups to recycle plastic waste generated from deliveries. For example, in Pune, they have partnered with local NGOs to handle waste responsibly.

Programs for Food Donation and Rider Welfare

Zomato:

  • Feeding India: Zomato's "Feeding India" initiative aims to combat hunger and food wastage. The program collects surplus food from restaurants and distributes it to needy people. This initiative has been highly successful in cities like Ahmedabad and Jaipur, where thousands of meals have been provided to underprivileged communities.
  • Rider Welfare: Zomato has introduced various programs to support its delivery partners. They offer health insurance, accidental coverage, and financial assistance during medical emergencies. Additionally, they provide training sessions to help riders improve their skills and safety on the job.

Swiggy:

  • Swiggy Hunger Saviors: This program encourages restaurants to donate surplus food to needy people. In collaboration with local NGOs, Swiggy has facilitated food donations in cities like Bangalore and Kochi, ensuring that excess food reaches the hungry instead of being wasted.
  • Rider Benefits: Swiggy offers insurance plans covering health and accidents for its delivery partners. It has also introduced financial literacy programs to help riders manage their earnings better. Moreover, Swiggy provides scholarships for the children of its delivery partners, supporting their education and prospects.

Conclusion

Zomato and Swiggy are impressive because they have smart plans, develop new services, and work hard to protect the environment.

Zomato's strong market presence and customer-centric programs like Zomato Gold, combined with its eco-friendly initiatives, highlight its dedication to quality and social responsibility.

Swiggy's rapid expansion, diverse offerings like Swiggy Instamart, and focus on rider welfare showcase its adaptability and community focus.

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