Swiggy, Zomato to diversify beyond core business, weigh new services: Report

Swiggy improved its top line, it still incurred losses in the financial year gone by as opposed to Zomato which generated a profit during the year.

Food and grocery delivery majors Swiggy and Zomato are assessing a host of services as they look to diversify beyond their core businesses, Economic Times reported.

Swiggy is set to launch a pilot programme for a services marketplace, labelled ‘Yello’, which will host professionals such as lawyers, therapists, fitness trainers, astrologers and dieticians. The company is yet to decide if it will be a different app or provided on the same Swiggy platform, the report added.

Swiggy is set to debut on Dalal Street on November 13.

The Bengaluru-based company is also testing a premium membership service called ‘Rare’ to provide access to high-end events such as Formula 1 races, music concerts, upscale art exhibitions, in addition to VIP hospitality and priority reservations at luxury restaurants, the report stated.

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Deepinder Goyal-led Zomato, which went public in 2021, started out as an online restaurant listing platform and has undertaken several pivots over the years. Zomato bought Paytm’s events and ticket business for Rs 2,048 crore, in order to diversify.

The Gurugram-based company is trying out a concierge-like service to help customers place online food orders over WhatsApp. Instead of deploying chatbots, human customer relationship agents will provide this new service, the report said.

Swiggy, despite posting a strong jump in revenue in financial year (FY) 2024, was behind Zomato, its arch rival, the company’s annual report accessed by Moneycontrol showed.

On a gross order value (GOV) basis – which totalled around Rs 56,924 crore between the two companies in FY24 – Swiggy had a market share of 43 percent in the food delivery industry and Zomato was the market leader with a 57 percent share in FY24.

While Swiggy improved its topline, it still incurred losses in the financial year gone by as opposed to Zomato which generated a profit during the year.