Food Delivery War: Zomato Extends Lead Over Swiggy With 58% Market Share

Foodtech major Zomato continued to reign supreme in the food delivery segment with a 58% market share in the June quarter of the financial year 2024-25 (Q1 FY25), Motilal Oswal reportedly said in its latest report.

On the other hand, its rival Swiggy, which made its stock market debut last week , trailed behind with a 42% share in the food delivery market, ET cited the report as saying.

Zomato continued to win market share from Swiggy in the food delivery segment between FY22 and Q1 FY25, driven by “stronger execution,” with the Deepinder Goyal-led company increasing its share from 54% to 58% in terms of reported gross order value (GOV) during the period, analysts at Motilal Oswal reportedly said.

Further, Blinkit continued to dominate the quick commerce segment with a 46% market share in Q1 FY25, followed by Zepto at 29% and Swiggy Instamart at 25%.

In a separate report, Motilal Oswal said that Swiggy can regain its lost ground in both food delivery and quick commerce segments with tighter execution and better utilisation of its unified app approach.

This follows reports that Zomato expects its food delivery business to grow at an annual run rate of 30% over the next five years.

While competition has intensified and sales have surged in the quick commerce segment in recent months, food delivery still remains a cash cow for the likes of Zomato and Swiggy.

Zomato clocked a GOV of INR 9,264 Cr from its core food delivery business in Q1 FY25 as against INR 7,318 in the year-ago period, registering a 27% rise YoY. 

By comparison, Swiggy’s food delivery business reported a GOV of INR 6,808.3 Cr during the June quarter of FY25, compared to 5,958.7 Cr in the same quarter last year.

Recently, brokerage firm Morgan Stanley reaffirmed its ‘overweight’ rating on Zomato and increased its price target to INR 355 from INR 278 earlier. This would imply an upside potential of more than 31% from the stock’s previous close.

Shares of Zomato were trading 0.24% higher at INR 271.35 apiece on the BSE at 3 PM today.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.