In a surprising twist of camaraderie amidst competition, food delivery giants Zomato and Swiggy shared a light-hearted exchange on social media as Swiggy made its debut on the stock market. This unique moment between two fierce rivals has caught the attention of netizens and sparked an interesting conversation about the future of the Indian food delivery industry.
Zomato’s Tweet Welcomes Swiggy with Warmth
As Swiggy listed its shares on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), debuting with a 7.7% premium on the NSE and 5.6% on the BSE, its biggest rival, Zomato, decided to make the occasion memorable with a playful tweet.
On Elon Musk’s X (formerly Twitter), Zomato, led by Deepinder Goyal, shared a tweet that read, “You and I… In this beautiful world,” tagging Swiggy’s X handle. The tweet immediately caught the attention of Swiggy, who replied, “It’s giving Jai and Veeru.”
For those unfamiliar with the reference, Jai and Veeru are iconic characters from the classic Bollywood film Sholay, known for their brotherhood and unbreakable friendship. The exchange between Zomato and Swiggy was a clear nod to their friendly rivalry, and fans couldn’t get enough of it.
Swiggy, based in Bengaluru, had a successful IPO (Initial Public Offering), opening for subscription between November 6 and November 8. The shares were priced between Rs 371-390 per share. The IPO included a combination of a fresh issue of 11.54 crore shares, which raised about Rs 4,499 crore, and an offer for sale of 17.51 crore shares, worth approximately Rs 6,828 crore.
As the company went public, Zomato’s gesture on social media was seen as a mark of respect and acknowledgment, especially considering that the two companies have been direct competitors in the highly competitive food delivery market for years.
Within hours, Zomato’s tweet had garnered nearly 1 million views, with netizens reacting in a variety of ways. Many expressed their admiration for the friendly exchange between two fierce rivals. One tweet from HDFC Bank humorously wrote, “We’re all in for the best kind of deposit—Friendship!” while another user suggested that the two should merge, joking that it would create a “monopoly with pricing power.”
Swiggy’s response, invoking the famous duo Jai and Veeru, further added to the playful nature of the exchange, suggesting a sense of mutual respect despite being competitors in the same industry.
Although Swiggy’s IPO debut was a success, it still lags behind Zomato in several key metrics, according to research from Macquarie. While Swiggy is still a major player, Zomato leads in several areas, particularly in food delivery and quick commerce.
Zomato boasts a monthly transacting user base of 20 million, which is 6 million more than Swiggy’s 14 million users. Both platforms have similar order frequency, but Swiggy’s average order value is slightly higher than Zomato’s. Despite this, Swiggy faces challenges when it comes to profitability, primarily due to its aggressive discounting strategies, which are aimed at acquiring and retaining customers. This has impacted Swiggy’s contribution margin, making it less profitable than its rival.
In contrast, Zomato’s business model is slightly more balanced, with a focus on scaling while maintaining better profitability. As a result, Zomato continues to lead in overall market share, even though both companies are constantly innovating and expanding their services.
The friendly exchange between Zomato and Swiggy reflects a significant shift in the competitive landscape. While these two companies have been at odds for years, their playful interaction on social media signals that there is room for both to coexist.
As Swiggy celebrates its IPO and enters a new phase of growth, the rivalry with Zomato is likely to intensify. However, with both companies continuing to dominate the food delivery market in India, it’s clear that the competition is far from over. For consumers, this rivalry may translate into more innovations, better services, and even lower prices as both companies vie for supremacy.
Zomato and Swiggy have proven that, despite being rivals, they can still maintain a sense of camaraderie and respect in the public eye. Whether this translates into a long-term friendly relationship or if the competition becomes fiercer, only time will tell.
But for now, fans of both platforms can take comfort in the fact that, in the world of food delivery, there’s room for both companies to grow and thrive. And if they keep interacting in this friendly manner, who knows—Jai and Veeru might just become the ultimate food delivery duo.
