Quick Commerce Outpaces Food Delivery: A Shifting Landscape
Market Shift
Quick commerce, led by Blinkit, Zepto, and Swiggy Instamart, is now more popular than traditional food delivery services.
Consumer Preference
Consumers prefer quick commerce for frequent grocery needs over discretionary food delivery orders from Swiggy and Zomato.
Market Overlap
Quick commerce has expanded in major cities, overlapping with and impacting food delivery’s market share.
Order Decline
In Q4 FY24, Zomato's food delivery saw a decline in gross order value, while quick commerce orders grew significantly.
Revenue Growth
Zomato’s revenue growth is driven by higher average order values and platform fees, despite fewer orders.
Profit Strategies
Swiggy and Zomato both rely on platform fees and advertising to boost profits amid slowing food delivery growth.
Margin Focus
As the market trends toward saturation, Zomato and Swiggy must optimize for profit margins to stay competitive.
Zomato, Swiggy And The New Shades Of Food Delivery
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