Food delivery major Zomato aims to solve for budget-conscious customers and sell affordable meals within the same app, without requiring a separate positioning for specific offerings, Founder and Group CEO, Deepinder Goyal said.
“It appears that these apps are specifically targeting budget-conscious customers. At our end, we believe that the Zomato app should be able to solve for these use cases without needing a new app,” Goyal said in his letter to shareholders on October 16.
To target all users from its main app, Zomato even lowered its delivery fee for gold members from Rs 199 to Rs 99.
We believe that launching another food delivery (aggregation) app to differentiate between target audiences has to be a carefully thought-out decision, since it significantly increases organisational complexity, Goyal said.
“We will wait and watch, and are okay being the last mover if, over time, it becomes clear that introducing a new app is the right long-term approach for targeting budget-conscious customers.”
While analysts have long debated on which approach works best, most companies are now launching seperate apps for different use cases to improve the recall in consumers' minds as cross-selling becomes more and more difficult.
Moneycontrol was first to report Swiggy is rolling out Toing, a separate food delivery app to cater to price sensitive users, including students and freshers.
Toing was launched soon after Rapido, a ride hailing company, launched Ownly, a food delivery app built for Bharat with an aim to make food delivery more affordable and break Zomato and Swiggy’s duopoly.
Zomato’s parent company, Eternal Ltd, on October 16 reported a profit after tax (PAT) of Rs 65 crore in the second quarter (Q2) of financial year 2025-26 (FY26), down 63 percent from Rs 176 crore in the same period a year ago.
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