Zomato vs DoorDash: Homegrown food delivery platform performs better than US major

livemint.com:

Zomato performed better than US-based food delivery platform DoorDash. According to brokerage firm Elara Securities, DoorDash reported 27% year-on-year (YoY) revenue growth to $2.3bn in Q4CY23 whereas Zomato food delivery adjusted revenue grew 29.4% YoY to ₹20.3 billion in Q4CY23, higher than Dash Dash also reported lower gross order value (GOV) YoY growth at 22% vs Zomato’s 27%. Dash's GOV and revenue growth is attributed to a 23% YoY increase in total orders, growing the number of users grew to 37 million, higher average order frequency, and better advertisement revenue.

The report further said that the San Francisco based food delivery aggregator is set to invest aggressively in CY24, especially in new verticals, such as grocery, and global markets. The brokerage firm further pointed out that both the companies are strategically aiming towards same goal i.e. to build a loyal customer base and foster sustainable growth.

“Both Dash and Zomato are strategically emphasizing acquisition of repeat customers through their respective subscription programs, DashPass and Zomato GOLD, to potentially reduce customer acquisition cost while concurrently enhancing margin and overall profitability," the report said. Additionally, both platforms are focused on increasing monthly active users, bolstering order frequency, and elevating average order value (AOV). Dash profitability has been improving across business verticals, with revenue up 31.2 percent YoY in CY23 while adjusted EBITDA as a percentage of GOV grew 115bp YoY to 1.8%, whereas, Zomato contribution margin rose 200 bp YoY to 7.1 percent in Q4FY24.