 "Swiggy pilots 'Yello' service marketplace as Zomato eyes concierge model")
Leading food and grocery delivery platforms Swiggy and Zomato are exploring fresh business ventures as they aim to diversify beyond their primary services.
Bengaluru-based Swiggy is gearing up to test a new service marketplace called “Yello”, designed to connect users with professionals such as lawyers, therapists, fitness trainers, astrologers, and dieticians, according to a report by The Economic Times.
Although Swiggy's IPO is set for November 13, it remains undecided whether Yello will operate as a separate app or be integrated into the main Swiggy platform.
In addition, Swiggy is experimenting with a premium membership option called “Rare”, offering affluent users exclusive access to high-end events such as Formula 1 races, concerts, and upscale art exhibitions, as well as priority reservations at luxury restaurants. These ventures highlight Swiggy’s intent to branch out from its traditional food and grocery delivery models, the report said.
Zomato's diversification efforts
Zomato, known for diversifying early on, previously acquired Paytm’s event ticketing business for Rs 2,048 crore, marking a significant expansion in its services. The company is now piloting a concierge-like service that enables customers to place food orders through WhatsApp, handled by human customer service agents instead of automated chatbots. This approach underscores Zomato’s strategy to provide a more personalised ordering experience.
Competing strategies
The ongoing rivalry between Swiggy and Zomato, both of which have been in the market for over a decade, now extends beyond food delivery as they face competition from e-commerce giants like Amazon and Flipkart, as well as new players like Zepto, in the fast-growing quick commerce sector.
Swiggy’s “superapp” strategy contrasts with Zomato’s approach of developing separate brands for distinct services. The main Swiggy app currently hosts its food delivery and quick commerce unit Instamart, alongside Swiggy Genie, Dineout, and other experimental features. Meanwhile, Zomato’s approach has been to focus on scaling dedicated brands like Blinkit for grocery delivery and is now building a platform for handyman services.
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Zomato's expansion
Zomato’s journey from a restaurant listing site to a diversified food tech platform includes notable shifts such as acquiring quick commerce platform Blinkit in 2022, establishing the 10-minute delivery model. The company also expanded into business-to-business grocery delivery with Hyperpure, a fast-growing segment, and recently launched its “going-out” vertical, set to operate under a separate app named “District”.
Swiggy’s recent ventures
Swiggy introduced a 10-minute food delivery service called "Bolt", which offers select items from participating restaurants. The company also ventured into cloud kitchens under the "Bowl Company" brand, but closed the division in 2022 to streamline operations.