research project on zomato and swiggy

Changes in customer perceptions towards online food ordering services through food apps (Swiggy&Zomato): An empirical study

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T. Somasundaram , V. G. Jisha , R. Rupashree , A. J. Excelce; Changes in customer perceptions towards online food ordering services through food apps (Swiggy&Zomato): An empirical study. AIP Conf. Proc. 19 May 2022; 2393 (1): 020032. https://doi.org/10.1063/5.0074078

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In India, Digital technology has reshaped the various industries in different level and with frequent use of technology had made the people to engage into digital sector for 24/7. The online food ordering system sets up a food menu online and customers can easily place the order as per they like. The main aim of this study is to identify the factors that change the customer perception towards online food ordering services through food apps (Swiggy&Zomato). The researcher used descriptive research and collected a sample from 167 respondents though structured questionnaire by using convenience sampling method. The statistical analysis like Reliability test, Chi square analysis, ANOVA, Correlation analysis were used to test the variables and items. This study is undertaken to know the factors that lead to changes in the consumer perception regarding online food services and the results suggest that majority of the customers are youngsters and their perception changes due to various factors like frequent incident in social media, bad past experiences, online review & comments.

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Sentiment Analysis of Zomato and Swiggy Food Delivery Management System

• Conference paper
• First Online: 19 October 2021
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• Anand Upadhyay 18 ,
• Swapnil Rai 19 &
• Sneha Shukla 20  

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 1235))

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In today’s world, millions of people are using micro-blogging sites for expressing their views. So, a large number of data are available on these micro-blogging sites. Understanding this kind of data helps in determining what a business needs to improve on. Our objective is to identify a better food delivery management system between Swiggy and Zomato, by performing sentiment analysis on Twitter data. Sentiment analysis is a part of AI which analyses the subjective information in a sentence, it can be a perception, appraisals, emotions, or attitude towards a topic, person, or entity. In this paper, we have extracted the Twitter data through Twitter API for performing sentiment analysis on tweets related to Zomato and Swiggy. We have calculated the subjectivity and polarity of a sentence to know whether the reviews are positive, negative, or neutral. This calculation helped us in determining which food delivery system is better among Zomato and Swiggy.

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M. Nagpal, K. Kansal, A. Chopra, N. Gautam, V.K. Jain, Effective approach for sentiment analysis of food delivery apps, in Soft Computing: Theories and Applications (Springer, Singapore, 2020), pp. 527–536

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Thakur College of Science and Commerce, Mumbai, 400101, India

Anand Upadhyay

Thakur Global Business School, Mumbai, 400101, India

Swapnil Rai

Guru Nanak Vidyak Society Institute of Management, Mumbai, 400037, India

Sneha Shukla

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The PNG University of Technology, Lae, Papua New Guinea

Ashish Kumar Luhach

CHRIST (Deemed to be University), Bangalore, India

Ramesh Chandra Poonia

University of Eastern Finland, Kuopio, Finland

Xiao-Zhi Gao

Namibia University of Science and Technology, Windhoek, Namibia

Dharm Singh Jat

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Upadhyay, A., Rai, S., Shukla, S. (2022). Sentiment Analysis of Zomato and Swiggy Food Delivery Management System. In: Luhach, A.K., Poonia, R.C., Gao, XZ., Singh Jat, D. (eds) Second International Conference on Sustainable Technologies for Computational Intelligence. Advances in Intelligent Systems and Computing, vol 1235. Springer, Singapore. https://doi.org/10.1007/978-981-16-4641-6_4

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Zomato, on the contrary, has two core B2C (Business-to-customer) offerings, food delivery and dining out, along with the business-to-business (B2B) offering, Hyperpure, which connects restaurants in India directly with fresh produce sourced from local farms to ensure the highest quality ingredients.

Other parts of the business include Zomato Pro, a customer loyalty program that includes both food delivery and dining out.

The company generates most of its revenue from food delivery and the related commissions from restaurant partners for using the platform. Restaurant partners also spend on advertisements on the platform.

The food delivery business thrives on a three-way partnership.

• Customers – who conveniently order meals from their favourite restaurants.
• Delivery Partners – who ensure that the food gets delivered promptly and safely to the customers.
• Restaurant Partners – who offer their menus on the platform while trying to reach a wider audience and increase sales.

Furthermore, the restaurant receives the total order value and packaging charges after deducting the commission and discounts it offers. The delivery partner receives 100% of tips and delivery fees from customers, and the company also provides them with an additional incentive payment.

From browsing menus and reading reviews to booking a table and paying the bill, Zomato streamlines your entire dining-out experience.

Marketing Strategy

Swiggy cleverly targets the young and tech-savvy demographic in India, typically aged 18-35. These individuals use smartphones extensively and rely on online platforms for convenience. This includes students, working professionals, and families who might want to skip cooking for multiple reasons.

The company tries to reach its target audience through social media platforms like Instagram. It uses these platforms to share mouthwatering food pictures, create interactive content and giveaways to boost engagement, and partner with social media influencers. 

Zomato focuses on paid marketing to keep the platform buzzing. The company collaborates with restaurant partners to create engaging campaigns across online and offline channels, including search engines, social media, TV & Radio ads, and eye-catching outdoor displays. This comprehensive approach attracts new customers and keeps the existing ones happy and satisfied. Zomato is also known for its engaging and witty social media presence.

Swiggy boasts a larger delivery fleet, resulting in faster deliveries. They have a wider reach in tier-2 and tier-3 cities, focusing on its core food delivery service and integrating other services like grocery delivery within the same app.

Swiggy has recently ventured into the instant delivery business with its brand, Swiggy Instamart. This is an in-grown brand, and thus, it has a smaller network than Zomato’s Blinkit. 

Zomato offers a more comprehensive user experience, including user reviews and ratings that can help you decide where to order from. They also have a wider selection of restaurants as partners. Zomato goes beyond just food delivery with its recent acquisition of Blinkit, an instant delivery app. 

Financial Highlights

Balance sheet and income statement.

Even though revenue from operations increased, both companies are currently unprofitable, with losses widening. However, Zomato’s losses have decreased compared to previous years, with a loss of 971 crores in 2023, and the company seems to be on track to profitability. 

Cash Flow Statement

The graph reveals the cash-burning phase of the two businesses. While both companies burn cash heavily, Swiggy is in a much better position than Zomato due to its better cash flow from the operations state. 

Swiggy excels in core delivery services with a user-friendly app and a focus on speed. They’ve expanded into related areas for additional revenue streams. Zomato takes a multi-faceted approach, offering features like restaurant discovery and instant delivery, aiming to be a one-stop shop for all your dining needs. Both Swiggy and Zomato constantly adopt new strategies to stay ahead in the competitive Indian food delivery market. Ultimately, both Swiggy and Zomato offer excellent services, and their constant innovation ensures a dynamic and competitive food delivery landscape in India.

Frequently Asked Questions (FAQs)

1. Which delivery company offers the fastest food delivery?

Ans. Both Swiggy and Zomato offer standard delivery times. However, Swiggy boasts that it delivers within 30 minutes of placing an order.

2. Does Zomato and Swiggy offer other services besides food delivery?

Ans. Both Swiggy and Zomato offer instant grocery delivery via their platforms, Instamart and Blinkit.

3. Which delivery company should I choose?

Ans. It completely depends on your priorities. Before deciding, consider factors like delivery speed, restaurant selection, ongoing deals, and other features.

4. Which delivery company holds the larger market share?

Ans. Zomato currently holds the larger market share.

5. Are Swiggy and Zomato listed companies?

Ans. While Swiggy is not listed, Zomato is.

Disclaimer: The securities, funds, and strategies mentioned in this blog are purely for informational purposes and are not recommendations.

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