Rivalry is heating up in India’s food delivery and fast commerce arena as long-standing companies like Zomato and Swiggy step up their game to claim dominance. With claims of deliveries to clients of less than 15 minutes, both businesses are in a mad dash to see who can beat the other to the punch. New, nimble competitors are piling pressure on the old, powerful firms, which is heating up the competition.
The Growth Plan of Swiggy
Swiggy has done a lot to solidify its position. Pyng is a platform that connects users with professional service providers including career coaches, legal experts, and yoga instructors; Snacc is an app that delivers meals from the company’s central kitchens in 15 minutes. The other app is called Snacc. Furthermore, Swiggy has declared its intention to divide its fast commerce service, Instamart, into its own app.
Bolt, Swiggy’s fast food delivery service, is part of the main app along with Instamart, Dineout, and Scenes. But, a changing approach to meet certain market demands is hinted at by the launch of independent applications such as Snacc and Pyng. The desire for quick delivery services is driven by customers, according to Aakash Agrawal, head of digital and new-age business at Anand Rathi Investment Banking. In order for platforms to stay competitive, they must change.
Zomato’s Restuarant and the Market Trends
Zomato has also entered the race with its new Bistro service, which is designed to compete with Swiggy’s Snacc and meet the increasing demand for super-duper rapid food delivery. Players such as Zepto have entered the rapid commerce area; the company had previously released an app specifically for its café service.
For the quarter ending in September, Swiggy’s meal delivery business brought in ₹1,577 crore, or 44% of the company’s total revenue. Zomato, on the other hand, generated ₹2,012 crore from meal deliveries, or 42% of its overall income.
The Rapid Commerce Boom
Currently accounting for 4% of India’s overall grocery industry, the rapid commerce sector is expected to reach $45 billion by 2030, up from $5 billion in GMV, according to a research by Bernstein. Amazon and Flipkart, two market leaders that have shifted their focus to speedier delivery approaches, have shown interest in the area.
The Level of Competition and Future Obstacles
The fast launches in quick commerce can appear reactive, despite the development potential. For example, on January 8, Swiggy debuted Snacc, and on December 12, Zomato debuted Bistro. Also in October, Zepto’s café app was the impetus for Swiggy to launch Bolt. Other companies have also joined the fray, with Ola Dash and MagicNow, respectively, from Ola and Magicpin.
Market saturation and even cannibalization are concerns that arise from such quick growth. Cannibalization is less of an issue if users remain on the platform, according to Agrawal, but it might affect restaurant partners that offer comparable services.
Anticipating the Future
As businesses strive to increase their part of the fast-growing e-commerce industry, we may anticipate further upheaval. Although Zomato and Swiggy are still leading the pack, this dynamic market will be shaped by new entrants and the changing preferences of customers.
