Zomato may have lost food delivery market share in Q3 as rivals scaled up 10-minute services: ICICI Securities
Zomato may have lost market share in the food delivery segment, a research note by brokerage firm ICICI Securities said, highlighting that the Gurugram-based company’s competitors have scaled up the 10-15 minute business faster.
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Zomato recently started rolling out a 15-minute food delivery service on its main app, in addition to its quick commerce arm Blinkit launching Bistro – a standalone app offering 10-minute food delivery. These services compete with the likes of Bolt and Snacc by Swiggy, and Zepto Cafe, in addition to players such as Accel-backed startup Swish.
While Zomato saw rapid growth in its quick commerce business for the October-December period, the growth for food delivery slowed down. It posted a 17% year-on-year (YoY) growth in food delivery gross order value (GOV) for the quarter, compared to 21% on-year growth in the September quarter.
While ICICI Securities did not state a market share number for Zomato in food delivery, according to GOV for the July-September quarter, the company had 57% share, compared to Swiggy’s 43%, as per the companies' quarterly earnings.
Further, Zomato also witnessed a sequential decline in the number of monthly transacting customers for the October-December quarter to 20.3 million, compared to 20.5 million in July-September.
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