Food and grocery delivery giants, Swiggy and Zomato, are testing various services to diversify beyond their core operations, sources close to the matter shared. Bengaluru-based Swiggy is piloting a new services marketplace called ‘Yello,’ offering customers access to professionals such as lawyers, astrologers, dieticians, therapists, and fitness trainers. According to insiders, this initiative could potentially be hosted within the main Swiggy app or as a separate platform. This move aligns with Swiggy’s larger goal of expanding beyond food and grocery delivery.
Swiggy is also exploring a premium membership service named ‘Rare,’ catering to affluent customers with perks like access to exclusive events and priority restaurant reservations. These offerings signal a strategic push into high-value services as Swiggy nears its planned stock market listing on November 13.
Zomato’s expansion into customer service and event ticketing
Meanwhile, Zomato is reportedly working on a concierge service, enabling users to place food orders over WhatsApp, assisted by human agents instead of automated chatbots. According to sources, the Gurgaon-based company has started recruiting for this service, aiming to enhance customer experience with personalized support.
Zomato has also been bold in its diversification, evidenced by its acquisition of Paytm’s events and ticketing business for Rs 2,048 crore. This acquisition broadens Zomato’s portfolio, bringing it into direct competition with new and established players in the Indian e-commerce and quick commerce space.
Different approaches to growth
While Swiggy and Zomato both explore new markets, they adopt contrasting strategies. Swiggy’s approach emphasizes a consolidated platform model, where its main app offers multiple services such as Instamart, Swiggy Genie, and Dineout. Zomato, by contrast, operates through distinct brands for different services, aiming to build independent identities for each.
Experts suggest that diversification is essential for sustaining growth in a competitive environment. “They have shown the market that their core businesses work, but these will eventually scale to a point where growth slows,” said a Mumbai-based analyst. As food delivery stabilizes, both Swiggy and Zomato are shifting focus to sustain momentum.
New services as differentiators
Swiggy’s upcoming ‘Yello’ marketplace aims to fill a gap in the market, providing a vetted, one-stop platform for various service professionals. Currently, Google offers limited access to similar services, but no comprehensive platform exists for verified online professionals, noted a source familiar with Swiggy’s plans.
Zomato, on the other hand, is developing a handyman services platform within Blinkit, positioning itself to compete with NCR-based Urban Company. Last year, Zomato CEO Deepinder Goyal stepped down from Urban Company’s board to avoid conflicts of interest as Blinkit expands into this domain.
Swiggy and Zomato’s ventures into quick commerce
In the quick commerce arena, both companies have introduced new offerings. Swiggy launched its 10-minute delivery service, Bolt, in October, which provides select items from local restaurants. Zomato, after acquiring Blinkit in 2022, continues to grow its own quick delivery service, competing in the increasingly popular rapid delivery space.
Future growth through strategic pivots
Over the years, Zomato has continually adjusted its business model. Besides food delivery, Zomato’s ventures include Hyperpure, a B2B grocery supply service, and a new going-out platform, District, which it plans to launch soon as a standalone app.
Source Link
