Gurugram: Food delivery major Zomato has started reclaiming some of its market share from rival Swiggy in the food delivery play, helped by an uptick in Gold membership signups. The comeback of the Gold programme is also expected to help Zomato improve its unit economics in the current quarter though the food delivery market may slow down further, as per a report by HSBC.
“We expect Zomato to continue to gain market share from Swiggy, led by an aggressive go-to-market strategy,” HSBC said in its report. Zomato was the market leader with 54% share in Q3 FY23 and the share is expected to increase to 56% in the current quarter.
“We have seen an industry-wide slowdown in the food delivery business since late October (post the festival of Diwali). This trend has been seen across the country but more so in the top 8 cities,” CFO Akshant Goyal said in Zomato’s earnings statement.
HSBC said the food delivery segment will continue to witness a slowdown in the March quarter, however, it will not have an impact on Zomato’s market position. Zomato Gold, the company’s first loyalty programme, which was remodeled to Zomato Pro, made a comeback in late January. The new membership feature has seen over 9 lakh signups already, the company had said while revealing its third-quarter financial performance.
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