A market research study has revealed that millennials prefer ordering food through Swiggy over Zomato. Data collated by research firm Kalagato has revealed that food delivery giant Swiggy distributed nearly 49 million orders till December 2019 as compared to Zomato’s 36 million orders.
Notably, Zomato trailed despite Swiggy clocking in a loss of Rs 2,000 crore in Financial Year 2019.
Kalagato data has also revealed that Swiggy’s average order value (AOV) ranged between Rs 243-Rs 300 between October-December 2019, while that of Zomato was Rs 252-Rs 278.
Although the numbers are likely to look up for Zomato considering their acquisition of UberEats India in January 2020, as of now, Swiggy has been enjoying maximum popularity in the country’s food delivery scenario.
Notably, Zomato provides its service in more than 500 cities across India, whereas Swiggy has just expanded the ambit of its services to about 450 cities in the country.
According to a Financial Express report, this fiscal Zomato may gain a stronghold into the Southern market as it taps into UberEats loyals, although Swiggy already enjoys considerable popularity in the region.
Ankur Pahwa, a partner at Ernst & Young LLP, also believes that Swiggy is at an advantage in the southern markets, since transactions are comparatively higher there. He also highlighted how Swiggy’s service has always centred around food delivery, whereas Zomato started out as a restaurant listing site.
Some analysts differ from this view and expect to lessen the gap in order volumes as compared to Swiggy, now that it owns UberEats too.
However, Swiggy’s operations are restricted to India, unlike Zomato, helping it focus better on its target group. Also, Zomato’s operations involve restaurant discovery and dine-out programmes apart from food delivery, making it difficult to streamline operations.