Zomato: Food delivery app Zomato may face huge losses in the coming days. This loss could be due to Zomato's own service as well as stiff competition from Swiggy and Zepto. The world of food delivery is changing rapidly and this may harm Zomato. Currently, Zomato is the market leader in this segment, but changing needs of people and changes in technology can impact it. On the other hand, Zomato is also facing tough competition from its rivals Swiggy and Zepto.
Now in India, fast delivery i.e. fast commerce has become more important than delivery of anything. The development of technology has made it possible to have goods delivered to the home within 10 minutes. Blinkit (Zomato), Swiggy Instamart, Zepto and BBNow are among the fast commerce runners, and after grocery, the battle for fast delivery has started in food delivery
Food delivery in 10 minutes
Zomato is currently considered to be one of the best apps for food delivery within 30 minutes and Swiggy does the same. But now both the apps have started their fast food delivery. Zomato has launched 10-minute delivery on its main app, while Swiggy has named it Snack. But these two apps are not alone in this fight. Zomato's instant commerce app Blinkit has launched a Bistro app for quick food delivery, while Swiggy also plans to offer all its services on different apps. At the same time, services like Zepto Cafe and Bolt are also available in fast food delivery. All this may result in Zomato losing its core application and market share.
What do the experts say?
Brokerage firm ICICI Securities said in a research note that Zomato may lose its market share in the food delivery segment. In this segment, Zomato's market share is 57 percent and Swiggy's market share is 43 percent.
In the October-December 2024 quarter zomato It reported strong growth in its fast-commerce business, while its food delivery business slowed.
In the July-September 2024 quarter zomato Its food delivery business saw a 21 per cent year-on-year growth in total order value, while the same growth in October-December was only 17 per cent.
Although Swiggy may suffer the loss of instant food delivery, its impact will not be visible on Swiggy's accounts unless it sells all its platforms.
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