Tuesday, December 17, 2019

Zomato, Swiggy play the differentiation game.

Two big brands Zomato and Swiggy is adding more meal occasions and  get smarter in personalising the experiences for consumers. They are extending their services to new line. Zomato is providing videos about food related shows and building a sustainable framework for its operations. Swiggy has new services example offering to pick up everything rom lost keys to groceries.  The demand for both Swiggy and zomato apps are being increasing nowdays, not just in big towns but also the tier 2 and 3 cities and the need to expand and differentiate their services. Swiggy says all its brand extensions focus on consumer experiences ie. nature of meal, served or the additional services under its name. Swiggy grew from 40 to 500 plus cities, its delivey partners grew 2x and transaction and restaurants numbers by 2.5x and 4x respectively. Its logistics operations helped take the brand deeper into the country but to go wider, the brand needs value added differentiators.

Swiggy has launched a services that caters to people living alone or ordering just for themselves, listing such restaurants and menus under a special format. It also has a cloud kitchen and other services that overlap with rival Zomato, but the services that competes with Google's Dunzo, called Swiggy Stores, is what separates it from Zomato. It picks up anything consumers want from anywhere they want within city limits in select cities. Zomato's monthly volume rise 40 million from 28 million last year. Zomato is in 550 plus cities of which 400 were launched in 2019. The reason for speed of expansion has attracted much attention and rumours of a deal with rival food delivery companies, but more importantly it has pushed the brand to separate its identity from the rest. In 2020 zomato will continue to focus on profitability but look closely at opportunities within the larger purpose of 'better food for more people'. 

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