Zomato‘s updated Gold membership program, which it launched in January, is demonstrating early signs of success as the food tech unicorn regains some of the ground it lost to archrival Swiggy. According to a study by HSBC Global Research, Zomato has eaten into Swiggy’s market share in this quarter thanks to Gold, which was relaunched at an initial price of Rs 149 for three months (Q4FY23).
Everything about Zomato-Swiggy Rivalry!
The credit goes to Zomato Gold; the company has started to regain some of the market shares it lost in FY22. With an aggressive go-to-market approach, we anticipate it to continue to oust Swiggy from the market share lead, according to HSBC’s study.
“The new Gold program is built on top of what we have discovered over the past few years, iterating on the input we have gotten from customers, restaurant partners, as well as investors. Deepinder Goyal, the CEO, stated in a letter to shareholders that he expects this initiative to promote loyalty and increased ordering frequency moving forward.
Zomato’s market share might increase to 57% in FY24, up 13 percentage points from FY20, according to HSBC. Swiggy’s market share would remain unchanged at 35%. The brokerage anticipates that Zomato will eventually absorb the effects of Gold advantages, boosting its EBITDA margins, over the course of the following few quarters. According to HSBC, Swiggy’s burn rate is still higher than that of its listed competitor.
The company also forecasts that the price of Zomato’s stock would increase by 64% from present levels to ₹87. HSBC anticipates Zomato’s rapid commerce vertical Blinkit to create value over the next two years despite the food ordering sector showing indications of slowing down, notably outside the top 8 cities.
According to projections from HSBC, Blinkit’s $1 billion gross order value run-rate may easily treble by FY25. “The Street continues to undervalue Blinkit. Due to low penetration and steady competition, hyperlocal/Q-commerce will probably experience rapid growth for a few years. We anticipate that rising volumes will also lead to an improvement in profitability,” it added.
FAQs
<strong><em>Which is the best programme wars?</em></strong>
Zomato Gold, and Swiggy One
<strong>How can I decide between Zomato Gold and Swiggy One?</strong>
Subscribers can decide between Zomato Gold and Swiggy One based on factors such as their food preferences, usage patterns, availability of partner restaurants in their area, subscription costs, ongoing promotions, and overall value proposition offered by each program.
<strong>Can I cancel my subscription to Zomato Gold or Swiggy One?</strong>
Yes, users can typically cancel their subscription to Zomato Gold or Swiggy One at any time through the respective app or website. However, it’s essential to review the cancellation policy and any associated fees before proceeding.
<strong>What is the future outlook for Zomato Gold and Swiggy One in the loyalty program wars?</strong>
The future outlook for Zomato Gold and Swiggy One in the loyalty program wars is competitive, with both platforms continuously innovating and evolving to meet customer demands, enhance user experience, and maintain their market positions amidst growing competition in the food delivery industry.
<strong>Which loyalty program is better: Zomato Gold or Swiggy One?</strong>
The choice between Zomato Gold and Swiggy One depends on individual preferences, dining habits, and the availability of partner restaurants in your area. It’s recommended to compare the benefits, pricing, and features of both programs to determine which best suits your needs.
<strong>How do Zomato Gold and Swiggy One compete with each other?</strong>
Zomato Gold and Swiggy One compete by offering competitive pricing, attractive benefits, expanding their partner networks, and introducing innovative features to attract and retain subscribers.
<strong>Can I use Zomato Gold and Swiggy One simultaneously?</strong>
Yes, users can subscribe to both Zomato Gold and Swiggy One simultaneously and avail of the benefits offered by each program independently.
<strong>How much does Zomato Gold cost?</strong>
The cost of Zomato Gold can vary based on promotional offers and the subscription plan (monthly, quarterly, or annual). Users should check the Zomato app or website for the most current pricing details.
<strong>How much do these programs cost?</strong>
The cost of Zomato Gold and Swiggy One varies depending on the subscription plan. Both platforms offer monthly and yearly subscription options
