Zomato's superior execution should hold it in good stead; stock up slightly

Zomato's share loss could be attributable to decisions like the temporary suspension of its loyalty membership programme and the shutdown of operations in 225 cities

A recent release by Swiggy investor Prosus has set off an inevitable comparison with Zomato. The two are direct rivals in terms of business models and footprints. Zomato is listed, whereas Swiggy is not.

Prosus’s release indicates Swiggy narrowed somewhat the market share gap with Zomato’s food delivery business in H1FY24 but Zomato continued to be the dominant player with a 54 per cent market share. Swiggy gained around 30 bps in H1FY24 compared to H2FY23 (Half-on-Half or HoH).

Zomato’s share loss could be attributable to decisions like the temporary suspension of its loyalty membership programme and the shutdown of