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The meal delivery industry is experiencing slower growth

Zomato and Swiggy are witnessing a slow down in growth

Photo by Rowan Freeman / Unsplash

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Growth in gross order value is declining in the Indian food delivery sector. Swiggy's growth was 26% in CY2022, down from 76% in CY2021; meanwhile, Zomato's growth was 36% in CY2022, down from 112% in CY2021.

Both Zomato and Swiggy are witnessing a slow down in growth.

Swiggy’s core food-delivery business is growing at 26%, whereas the grocery arm Instamart is surging at 459%.

For Zomato average monthly transacting users also fell from 17.4 million to 16.6 million in Q4 FY2023.

"The quarterly growth is low because of the demand slowdown we witnessed in our business from late October last year till the end of January this year." - Zomato

Quick commerce is the new focus area for Zomato and Swiggy to increase the frequency and average spending form customers