New Delhi. There is a fierce competition between Swiggy and Zomato in the Indian online food delivery industry. Recently, Swiggy made a great debut with its IPO, which was better than analysts' expectations. On the other hand, Zomato has further strengthened its hold with its strong position and market share. Between 2015-2018, there were many players like Zomato, Swiggy, Faasos, Foodpanda, and Uber Eats in the Indian food delivery market. But after this competition, now this industry has become a duopoly between Zomato and Swiggy. Zomato's market share is 56-57%, while Swiggy's is 40%.

According to a report by HDFC Securities, Zomato improved its efficiency between 2022-24 and withdrew operations from low-user cities. This improved Zomato's monthly order frequency (MoF) and average order value (AoV). At the same time, Swiggy still lags behind Zomato by 4-6 quarters in these key performance indicators (KPIs).

However, between FY24-27, Swiggy may focus on efficiency by adopting Zomato's strategies. In Q1FY25, Swiggy has improved fixed cost absorption, but its growth rate has been low.

Competition in the quick commerce business
Swiggy launched quick commerce in 2020, but now Zomato's Blink-it (formerly Grofers) and Zepto dominate the space. Blink-it's strong network in Delhi-NCR and high GoV (gross order value) have benefited Zomato. Swiggy and Zepto have developed their quick commerce business in-house, while Zomato strengthened its position by acquiring Grofers.

Performance in the food delivery business
According to an HDFC Securities report, Zomato improved its efficiency between 2022-24 and withdrew operations from low-user cities. This improved Zomato's monthly order frequency (MoF) and average order value (AoV). At the same time, Swiggy still lags behind Zomato by 4-6 quarters in these key performance indicators (KPIs). However, between FY24-27, Swiggy can focus on efficiency by adopting Zomato's strategies. In Q1FY25, Swiggy has improved fixed cost absorption, but its growth rate has been low.

Swiggy
Swiggy is a consumer-first technology platform that offers services such as food delivery, grocery, hyperlocal delivery (via Genie), restaurant reservations (Dineout), and event bookings (Stepinout). Swiggy launched food delivery in 2014 and Quick Commerce in 2020.

Zomato
Zomato is a food delivery and restaurant discovery platform. Its key features include Hyperpure Business, Zomato Gold Membership, and Blink-It (Quick Commerce).
The promise of delivery of groceries and other products in 10 minutes through Blink-It gives Zomato an edge in this field.

Prospects
HDFC Securities values ​​Swiggy at 4 times FY27 sales on a SOTP (sum-of-the-parts) basis. For Zomato, Axis Securities has a target of ₹280 per share and gives it a “buy” rating.