Zomato has got an interesting feature that will make ordering a variety of food easier. The food app introduced a new feature that allows users to place orders from multiple restaurants at the same time. This move comes as the company aims to gain a larger market share in a time when food delivery has slowed down. Zomato took inspiration from Pincode, an app owned by PhonePe, which also offers a similar feature of building carts across different categories.
As per the Moneycontrol report, with the latest update to the Zomato app, users can now create up to four carts from different restaurants and eventually place orders from their preferred eatery. After completing an order from one cart, users can return and continue ordering from the remaining carts, just like Pincode’s functionality in the Open Network for Digital Commerce (ONDC).
PhonePe CEO Sameer Nigam emphasized the multi-cart feature during the launch of Pincode, stating that it enhances the shopping experience and leads to increased sales. If Zomato can also improve purchase decisions through this feature, it could potentially gain more market share from its competitors.
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A Zomato spokesperson expressed the company’s commitment to innovation and improving customer experience. “At Zomato, we aim to constantly innovate and evolve for better customer experience. With this feature, customers can create multiple carts without going back and forth across different menus,” a Zomato spokesperson told Moneycontrol.
Both Zomato and Swiggy, the two major players in the food delivery market valued at around $5 billion, have been engaged in fierce competition to expand their market shares. Currently, Zomato holds a larger share of 55 per cent, while Swiggy’s share stands at 45%. However, this represents a shift from 2020 when Swiggy was the leader with over 52 per cent market share. Over the past three years, Swiggy’s market share has been steadily declining.
Despite Swiggy’s revenue growth from $600 million to approximately $900 million in the financial year 2023, it has incurred higher losses compared to Zomato. Swiggy’s losses amount to around $545 million, whereas Zomato’s losses are approximately $110 million during the same period.
Zomato’s new feature will enhance the shopping experience for its users and potentially gain more market share. Meanwhile, Swiggy has been facing declining market share despite its revenue growth, leading analysts to question its ability to capitalize on the food delivery opportunity.
