Zomato Vs Swiggy: Jefferies Offers Insight Into Who May Be Winning

As India's two food delivery giants continue to battle it out, here are Jefferies' views on who might be winning.

<div class="paragraphs"><p>The Zomato app is seen on a mobile phone. (Photo: Florence Lo/Reuters)</p></div>
The Zomato app is seen on a mobile phone. (Photo: Florence Lo/Reuters)

Swiggy is losing market share to Zomato Ltd. even though it offers aggressive discounts on food delivery, according to Jefferies. In the process, Swiggy is losing more money.

Zomato's market share was at its highest level ever in the first half of 2022, Jefferies said in a note citing Prosus' financials. "We see a strong case for Swiggy dropping its aggressive stance in food delivery in a bid to reduce its losses, and in the case that does not happen, Zomato may be induced to increase its aggression to drive growth."

In the battle between India's two food delivery giants, here's Jefferies' view on who might be winning the market shares, quick commerce, and the path to profitability:

Market Share In Food Delivery

Jefferies said Prosus' financial model pegs Swiggy's food delivery gross value at $1.3 billion (Rs 10,600 crore) in the first six months of 2022.

That compares with $1.6 billion (Rs 13,000 crore) for Zomato during the same period.

"Swiggy grew 40% while Zomato growth was 55% during this period," Jefferies said. "Zomato averaged a 55% share, which we believe is the company's highest share."

Quick Commerce: Instamart Vs Blinkit

Swiggy's quick commerce business, Instamart, gained traction, growing 15 times year-on-year. In the first half of 2022, its gross merchandise value was Rs 2,100 crore.

That compares with Zomato's Blinkit, which has also grown "at an impressive pace" to Rs 2,205 crore.

"Growth numbers clearly point to an increased buy-in from customers," Jefferies said.


Swiggy losses during the first half of the year were much higher at over $315 million (Rs 2,570 crore). Jefferies said this is "significantly higher" than Zomato's standalone loss of $50 million (Rs 410 crore) during the period, with Blinkit loss estimated at $120 million (Rs 980 crore), still pegging aggregate losses at $170 million (Rs 1,390 crore).

"Zomato has since improved its performance, with a recent quarter loss of slightly more than Rs 204 crore," Jefferies said.