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Swiggy vs. Zomato
Digitalization has become an integral part of our lives. After the sudden birth of the unforeseen pandemic, the online market and e-commerce sectors have received a great boon. Several factors like company foundation, investors, daily orders, competitors, safety measures, and revenue generation are worth considering. According to the statistics, both Swiggy and Zomato cover a minimum of 80% of the online food delivery market. Hence let us dive deeper and explore the two giants of the online food delivery sector. Swiggy vs. Zomato.
ABOUT THE COMPANIES
Zomato is an Indian multinational food delivery company that came into existence in 2008. The company has its headquarters in Gurugram, Haryana, and offices in Pune, Delhi, Mumbai, Chennai, Kolkata, and Bangalore. It also has offices in UAE, Sri Lanka, Qatar, the UK, South Africa, Brazil, Turkey, Canada, Ireland, and New Zealand. Gaurav Gupta (COO) and Deepinder Goyal (CEO) are the founders of the food delivery company. Pankaj Chaddah, Mohit Gupta, Akriti Chopra, and Gunjan Patidar manage more than 5000+ employees.
The company is working under the joint ownership of Info Edge, Uber, Antfin Singapore, and Alipay Singapore and is offering services in 10000+ cities. Since its existence, Zomato has acquired companies like Gastronauci, Urbanspoon, Zomato, Sparse Labs, TongueStun, Grofers, Uber Eats, and TechEagle Innovations.
Swiggy is one of the well-known online food ordering and delivery companies working since 2014. Nandan Reddy, Rahul Jaimini, and Sriharsha Majety are its founders. The company has its headquarters in Bangalore and is functioning under the ownership of Bundi Technologies Pvt Ltd. Since, its existence the company operating in more than 300 cities all over India. Vivek Sunder, Dale Vaz, and Rahul Bothra manage the food delivery company. The company is partners with Burger King, Sodexo, Indifi Technologies, Google Local Guide, and ANRA Technologies.
It has also launched Swiggy Money in partnership with ICICI Bank to facilitate online payments. The company expanded its business into delivering necessities under the name Swiggy Stores. In 2019, Swiggy launched the instant pickup/drop-off service called Swiggy Go. This facility allows customers to transfer food, parcel, laundry, and documents from one place to the other.
POPULARITY RANKINGS
The popularity of any application depends on the user interface, features, and facilities it offers. Swiggy app is user-friendly, well-designed, and doesn’t involve complex animations. The home page includes restaurants near your location, a list of past orders, and various modes of payment. In August 2020, it launched a new venture called the Swiggy Instamart, realizing the impact of the pandemic. It aims to deliver instant items like fruits, meals, snacks, ice creams, and vegetables within 45 minutes.
Zomato also has a simple user interface, but the account page is engaging. It allows the users to create their profiles, write reviews, add photos/videos, and follow various food bloggers and companies. It provides 25 points for every order review and offers exciting cash back/offers to attract more customers. It also remembers the last payment option and lists additional suggestions before placing the order. Zomato focuses on restaurant finding and providing an engaging app experience, whereas Swiggy emphasizes quick food delivery.
MARKETING STRATEGY
In the competitive e-commerce market, it is essential to formulate a comprehensive and successful marketing strategy. Hence, let us study the unique marketing strategies formed by both companies to survive in the online shopping sector. Zomato uses top keywords and focuses on search engine optimization tools to build its unique URL and attract traffic. It also posts funny, trendy, and engaging posts to keep the users engaged. It aims to improve digital marketing strategies and attract huge mass through social media marketing.
Swiggy emphasizes quick delivery of the order from the nearest possible location to its customers. It prioritizes satisfying the hunger needs over the layout and discounts offered. The company has also launched more than 3500 Swiggy Stores in Gurugram and collaborated with Apollo Pharmacy, Liscious, Health HK Ark, and Ferns N Petals. The deep discounting policy and mass reduction in the cost of delivery charges have been a massive step towards the company’s progress.
PAYMENT METHODS
During the ongoing pandemic, online shopping companies have shifted to cashless methods. Zomato follows a simple payment procedure that remembers every user’s recent payment mode. It saves a lot of time and keeps a flow while ordering, whereas Swiggy makes it compulsory for users to set up their accounts through their PayTM number. It doesn’t remember previous payment choices and allows the users to select from various payment options.
It is compulsory to turn on the location button on the device before placing the order on Zomato. It does not detect the city and location of the customer without enabling the location tracking system. But once the location tracker is on, it auto-detects the area of its customer and saves the time of manual address typing. Swiggy, on the other hand, does not make it a compulsion for the users to turn on the location button on the phone before ordering.
REVENUE GENERATION
Every company requires adequate working capital, reliable investors, and a long-term relationship with its customers. Both Swiggy and Zomato are on the same level while comparing monthly sales and revenue generation. The pandemic had affected both the companies to a large extent resulting in the decline of sales and app engagement. The public was reluctant to eat outside food and preferred eating home-cooked meals. When the restaurants finally opened and people got the confidence that online food ordering was safe, the conditions of the two giants started improving.
Both the companies suffered severe losses and took adequate measures like selling stakes and closing subsidiaries. Zomato sold its stake in Loyal Hospitality, Bengaluru, and closed its subsidiaries in Norway, Austria, and Romania. Whereas, Swiggy shut down its subsidiaries like Scootsy and SuprDaily. Zomato started to recover from the losses and acquired a food delivery company called UberEats. Zomato fulfills 1.2 million daily orders, and Swiggy fulfills 1.5 million daily order requests. Hence, it is clear that Swiggy wins the race in the revenue generation sector.
RESTAURANT SUPPLY CHAIN
Both Swiggy and Zomato are popular online food delivery companies having an intensive supply chain network. When it comes to comparing the two giants based on the delivery time, then Swiggy is the clear winner. The real-time location tracking and nearby restaurant pickup options make it easier for the delivery personnel to fulfill their promise before the estimated time. It also has cards like grocery, fruits, vegetables, and restaurants with real-time images for quick ordering.
Zomato attracts customers through attractive coupons, discounts, and cash back offers. It covers all the restaurants available in the city irrespective of the delivery location. The banner on the top of the home page showing that food delivery is safe gives a lot of assurance to the customers. It deals with only those restaurants that comply with the hygiene and safety standards set by the regulatory organization.
CONCLUSION
Online food delivery companies save a lot of time and money for every customer and allow orders with just a click. The users can search for their favorite dish from any restaurant for home delivery or dine-in purpose. It collects valuable feedback and suggestions for improvement from all the restaurants.
The company also emphasizes using high-quality ingredients and maintaining the best hygiene standards. As every coin has two sides, it is difficult to say which the best is. Which one will you choose after reading the comprehensive analysis? Let me know in the comments section below.
