Zomato zooms past Swiggy in terms of growth in July, captures more market

Zomato and Swiggy are both leading industry players in the online food delivery market and quick commerce segment

Food delivery platform Zomato grew at nearly 29 per cent in July (year-on-year), marking a significant growth compared to rival Swiggy, which recorded 11 per cent growth during the same period, Moneycontrol reported on Tuesday.

According to the report, Zomato logged a 1.6 per cent order growth on a month-on-month basis, which was healthier compared to Swiggy’s 4.6 percent decline (M-o-M). This led to increased market share for Zomato, the report added.

According to some estimates, Zomato's food delivery market share stands at about 55 per cent while Swiggy at nearly 45 per cent.

Business Standard reported in June that the international brokerage firm CLSA had predicted that Zomato would outpace Swiggy in growth ahead. CLSA cited factors such as price-to-earnings (PE) valuations for projecting Zomato’s long-term growth and short-term momentum.

In the financial year 2023-24 (FY24), Swiggy’s combined gross order value (GOV) for its services increased 26 per centyear-on-year (y-o-y). Here again, Zomato led the chart with 31 per cent (y-o-y) growth.

Zomato also significantly out-earned its rival in terms of revenue.

Zomato vs Swiggy: Quick commerce  

Besides food delivery, both platforms are also two major rivals in the quick commerce segment. While Zomato-owned Blinkit operated 526 dark stores in FY24, Swiggy’s Instamart had 487 active dark stores. Dark stores are mini-warehouses used by quick commerce firms to provide “10-minute delivery” service to consumers in a given location.

Moreover, Zomato reported a positive operating profit of around $5 million during FY24 while Swiggy’s trading losses reduced to $158 million during the same period. For Zomato, the brokerage firm Noumra has raised FY25-26 adjusted earnings before interest, tax, depreciation, and amortisation (Ebitda) by 26-60 per cent.

Bengaluru-based Swiggy has filed the initial public offering (IPO) papers with the markets regulator Sebi, and is expected to go public soon.