Competition between big brands is an important part of business and marketing. Companies know the impact competitors can have on their sales so they try everything to achieve the faith of customers. In many ways, brand wars are good for the buyer because brands know the value of having loyal customers.
Both Swiggy and Zomato are trying to rule Indian food delivery market by introducing new facilities to the customers. The interesting thing is to see who wins this battle.
Why online food delivery is getting popular in India ?
A lot of people these days live away from their homes to earn a living and most of the people don’t have the time to go to restaurants and wait for the food daily. Also, the offers and discounts these companies give attract a large segment of food lovers. The on-time delivery to the customer helps in increasing sales of the food point is another reason for the popularity of Zomato and Swiggy.
How many orders do Swiggy and Zomato process ?
According to the last year reports, Swiggy handles approximately 4 million orders in a month and Zomato serves 3 million orders in the same time period. The main tactic that has helped Zomato is the zero commission campaign for the restaurants associated with them. We believe Zomato is doing so to give Swiggy a tough battle by cutting their margins. India is a country where people don’t like to pay extra money for anything so this step is a big positive for Zomato as Swiggy charges for each delivery.
Why Zomato is offering orders with zero commission?
Zomato is surviving with zero commission because its advertising revenue is well planned. According to Zomato, their advertising revenue was close to $38 million in the financial year 2017. Both the customers and the restaurant owners are benefiting from Zomato.
So, which one is better?
While Zomato has done so many good things but it is still behind because Swiggy has good relations and partnerships with restaurants as it was first to start all this. Zomato gets most of its from the parent app whereas Swiggy does better on the merchant side. Zomato was neglecting the delivery part while Swiggy knew what customers wanted from them. For a small food joint, it is really difficult to deliver the food on its own. Zomato has now acquired a logistics company and it is improving the business very quickly. Still, the logistics company is only delivering a small part of total volume and it will take time execute properly.
What is the future?
The next big thing for both these companies is the cloud kitchens that have been started in the big cities. Cloud kitchens will play a vital role in deciding which company will win this battle. We hope more competitors will enter Indian food delivery business soon and improve the business for the betterment of customers.
