Zomato's Gold programme helps company reclaim market share from Swiggy: HSBC report
30 October 2024
Zomato, since the relaunch of its loyalty programme, has started reclaiming the market share it had lost in the second half of 2022 to rival food delivery company Swiggy, HSBC Global Research said in a note. The Gurgaon-based company relaunched Zomato Gold in January, almost 30 months after it replaced the subscription programme with Zomato Pro, which itself was discontinued last year. The new Zomato Gold membership is offered at Rs 149 for a three-month subscription. This is a discount to the Rs 999 quarterly membership fee. The report pegged Zomato’s market share for the January-June 2022 period at 55%, with the remaining 45% being held by Swiggy. This changed to 54% and 46% for Zomato and Swiggy, respectively, for the October-December 2022 quarter, it said. HSBC projects Zomato's market share to increase to 57% in fiscal 2023-24 (April-March). “We expect Zomato to continue to gain market share now from Swiggy, led by an aggressive go-to-market strategy,” the report said.
Zomato, since the relaunch of its loyalty programme, has started reclaiming the market share it had lost in the second half of 2022 to rival food delivery company Swiggy, HSBC Global Research said in a note. The Gurgaon-based company relaunched Zomato Gold in January, almost 30 months after it replaced the subscription programme with Zomato Pro, which itself was discontinued last year. The new Zomato Gold membership is offered at Rs 149 for a three-month subscription. This is a discount to the Rs 999 quarterly membership fee. The report pegged Zomato’s market share for the January-June 2022 period at 55%, with the remaining 45% being held by Swiggy. This changed to 54% and 46% for Zomato and Swiggy, respectively, for the October-December 2022 quarter, it said. HSBC projects Zomato's market share to increase to 57% in fiscal 2023-24 (April-March). “We expect Zomato to continue to gain market share now from Swiggy, led by an aggressive go-to-market strategy,” the report said.
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