Zomato edges past Swiggy in India’s food delivery market, finds report

Food delivery platform Zomato is edging ahead of its competitor Swiggy, as per a report by brokerage firm Bernstein India. While both Zomato and Swiggy have been almost equal in terms of market share over the years, the balance is now shifting in favour of Zomato. ““The Indian online food delivery market has been a steady duopoly for a while. However, that has started to change with Zomato expanding share to around 55 per cent in food delivery,” the report by Bernstein said. Furthermore, Zomato’s acquisition of Blinkit has helped it close the gap with Swiggy and race ahead of it in terms of market share. What is the reason for Zomato getting ahead of Swiggy? Zomato has managed to get ahead of Swiggy through stronger execution in the food delivery business. The company’s investment in the quick commerce business also gave it an edge, as per Bernstein. Zomato’s acquisition of Blinkit was seen as crucial in this endeavour. The company had announced earlier this month that it had broken even in the food delivery sector. Zomato had reported an adjusted EBITDA of 0 for the quarter ending June 2022. Adjusted EBITDA means the earnings before interest, taxes, depreciation and amortisation. It is used to compare/assess related companies for valuation analysis or other purposes, according to Investopedia. What are some recent measures introduced by Zomato? Zomato-owned Blinkit has introduced printing services. The grocery delivery service is offering printouts in certain areas of Gurgaon. It plans to expand the venture to other cities as well. The move was slammed on social media, with many criticising the high cost of the printing services being offered. Blinkit has stated that the price is Rs 9 per page for monochrome printouts and Rs 19 for one page of colour prints. An additional Rs 25 will be charged for the delivery of the printouts. Zomato has also stated that it has closed renewals and new sign-ups for its Zomato Pro programme. The members-only programme which assured food enthusiasts of savings and delivery on priority, has been discontinued. The official Twitter handle of Zomato Pro confirmed the development and stated that it was working on a new experience for users.

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