Blog 114 : Zomato vs Swiggy
Business Models of Zomato and Swiggy:
Future Growth of Indian Online Food Delivery Market:
The Indian Online food delivery market is projected to reach $90B by 2029, growing at a CAGR of 21.78%.
Food Services market in India:
The overall food services market is expected to double to Rs 9-10 lakh crore by 2030.
Zomato and Swiggy are the two biggest players and are well-positioned to benefit from this growth.
Here's a breakdown of their business models, market share, revenue, profits, and future growth prospects.
Business Model:
Zomato's business model includes food delivery, dining out, advertising, and sustainability.
Zomato's acquisition of Blinkit in June 2022 has been a strategic move that has helped Zomato expand into the quick commerce market and improve its overall business.
while Swiggy's model is driven by the intersection of logistics and technology, with a focus on business diversification.
Market Share:
Zomato =55.7%
Swiggy =43%
Revenue:
In FY24, Swiggy's revenue was Rs 11,200 Crores.
Zomato's gross revenue surged to Rs 12,000 Crores in FY24.
Profits:
Zomato recorded a Porfit of Rs 350 Crores in FY24.
Swiggy is still in loss making zone, but as per reports, its cutting losses.
Key Statistics:
Daily Orders: Swiggy (20,00,000), Zomato (13,00,000)
Delivery Partners: Swiggy (4,00,000), Zomato (3,50,000)
Market Capitalization: Swiggy (1L Crores), Zomato (2.27L Crores)
Overall, both Zomato and Swiggy have Strong business models and growth prospects, but Zomato's diversified revenue Streams and higher market share give it an edge.
Some of the factors that are driving the growth of the online food delivery market include:
Increasing demand for convenience.
Wide range of cuisines available.
Growing number of smartphone users.
Growing prevalence of internet access.
Higher incomes
Digitisation
Improved customer experience.
Inclination to try new experiences.
With the Increasing demand for Online Food Orders, the growth for QSR Industry will be massive in Coming years.
Listed QSR(Quick Service Restaurants) Stocks in India:
1.Barbeque
2.Jubilant Foodworks
3.Devyani International
4.Sapphire Foods
5.Westlife Foodworld
Disclaimer: Stocks Reco's are only for the Research Purpose, not an investment Advice.
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