Investek's analysis says Zomato and Swiggy competed with many rivals, Foodpanda and Uber Eats among them, between 2015 and 2018 before the market consolidated into a duopoly. It finds Zomato's market share about 30% larger than Swiggy's, thanks to more monthly transacting users and a stronger Tier 1 presence, while Swiggy has pushed into Tier 2 and 3 cities.
From many apps to two
Investek's comparison of Swiggy and Zomato is less about naming a winner than about explaining how Indian food delivery became a two-player market, and where each company's lead comes from today.
From 2015 to 2018, the two were up against a long list of rivals, with Foodpanda and Uber Eats among them. That phase ended in consolidation: smaller players either left the market or were bought out. What remained is the set-up restaurants work with now, two platforms whose customer bases, restaurant networks and rider fleets make it hard for a third serious competitor to last.
Why Zomato is ahead
According to Investek, Zomato's market share is roughly 30% larger than Swiggy's. The analysis puts this down to Zomato having more users who place orders every month and a stronger hold on Tier 1 cities.
Investek links the gap to different strategic choices. Zomato leaned on:
- Brand recognition as the better-established name, which started out in restaurant discovery before moving into delivery
- A presence outside India, so it depends less on the home market alone
- Its purchase of Blinkit, which took it into quick commerce
Where Swiggy is placing its bets
Swiggy's approach, as Investek describes it, rests on three things:
- Putting food delivery, grocery and hyperlocal services inside a single app
- A deliberate push into Tier 2 and Tier 3 cities that are less well served
- Putting comparatively heavier investment into building its own quick-commerce business
What the stock market has made of both
Since listing, both companies have seen their market capitalisation climb well above their IPO valuations: Zomato since its debut in July 2021, and Swiggy since its more recent listing, which had Softbank's backing. Investek reads this as investors backing how each company is being run, not simply the food delivery category.
At the time of the analysis, Swiggy had also reached EBITDA breakeven by Q1FY25, meaning its earnings before interest, tax, depreciation and amortisation were no longer negative. That is a real profitability milestone, even though the company was not yet profitable at the net level.
Both companies are putting the money they raised into staying in the fight, whether in quick commerce, in new cities or in new services. Neither is settling into fixed, stable terms.
What this means for your restaurant
- Do not treat either app as fixed infrastructure. Both are still spending to compete, and that competition will keep reshaping commission structures and the rules on visibility.
- When you plan how much your business will rely on a platform over the next few years, assume today's terms can change.
- Look at your own city: Zomato is stronger in Tier 1 cities, while Swiggy is deliberately expanding into Tier 2 and Tier 3, so the balance between the two may look different where you trade.
Sources
This article summarises the reporting and guides listed above; the figures belong to those sources and are attributed in the text. Check anything that affects your business against your own platform agreements, payout statements and advisers.