Swiggy, Zomato continue to gain pace in Tier 1 metros, traction in tier 2 cities picking up rapidly: Report

Zomato and Swiggy battle for top spot
Zomato and Swiggy battle for top spot

Swiggy and Zomato, both food delivery startups, established in India, have been gaining pace in the Tier 1 cities and metros, and have also seen major traction in Tier 2 markets over the past year, according to a report on the Indian app ecosystem.

Both the foodtech, together completes over three -quarters of all food orders in the country, shows a data released by Unomer, along with Quartz. However, Zomato takes the lead with 12 per cent of smartphones having the app installed, with Swiggy had 10 per cent smartphone penetration in India.

Whereas, other apps such as UberEats and Foodpanda have download penetration in low single-digit percentages.

Unomer’s data was collected from six million smartphone users in the country in May 2019, so while it’s not a definitive indicator, it does take into account a lot of smartphone users.

The Unomer data also revealed that the Zomato Gold rewards programme has worked really well, driving repeat purchase, loyalty among consumers.

Swiggy was founded by Sriharsha MajetyNandan Reddy, and Rahul Jaimini in 2014. The company claims to have over 2 Lakh delivery partners and more than 1 Lakh restaurant partners spread across 200+ Indian cities.

Zomato, on the other hand, is an Indian restaurant search and discovery service provider, founded in 2008 by Deepinder Goyal and Pankaj Chaddah.

It currently operates in 24 countries. It provides information and reviews of restaurants, including images of menus where the restaurant does not have its own website and also online delivery.

Furthermore, in metros like Mumbai, Delhi and Bengaluru have the most users with food-delivery apps installed.

In terms of share of smartphone users in the city, penetration is higher in Tier 2 cities like Hyderabad and Jaipur.

On a city to city basis, Zomato has an edge in Delhi, Kolkata, and Chandigarh while Swiggy leads in Chennai, Guwahati and Kochi.

According to a 2019 report by research and consulting company RedSeer, the foodtech sector posted triple-digit growth for the third-year running and players in the space expanded their footprint like never before.

From presence in just around 15 cities a year back, foodtech platforms expanded to over 100 cities in 2018 and about 30% of their orders now come from non-core markets.

Some of the foodtech giants that falls under the similar roof includes SwiggyUber EatsFoodPandaDineout, and many others.

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