Zomato Most Preferred Food Delivery App, Swiggy Bolt Ahead In 10-15 Minute Segment: BofA Survey
Among quick commerce users, Zomato's Blinkit emerged as the top choice, followed by Zepto and Swiggy Instamart.
Food and grocery delivery platform Zomato Ltd. emerged as the most preferred food delivery application in a survey conducted by the research arm of BofA Global Securities.
Out of over 1,000 users surveyed, 32% opted for Zomato as their top choice, followed by 28% preferring its nearest rival Swiggy, as per a report released by the brokerage on Sunday, citing its survey findings.
Swiggy Bolt, the quick delivery arm of Swiggy, emerged as the top choice in the 10-15 minute food delivery segment. A total of 47% of users indicated they prefer to order from Swiggy Bolt as compared to 16% preferring to order from rival Zepto Café, it added.
This may be driven by the fact that restaurant-delivered food is ordered more for lunch or dinner versus café food items mainly ordered for snacks, BofA pointed out.
Blinkit Ahead In Quick Commerce
Blinkit, the quick-commerce arm of Zomato, was the most-preferred app for 54% of the users. Majority of those surveyed used more than one quick commerce app. Zepto remained the top choice of 48%, whereas 44% preferred Swiggy Instamart.
Around 38% of the surveyed users indicated that increase in quick-commerce ordering has come "at the expense of kiranas," the report said.
This phenomenon is more visible in North and West India, the brokerage said. While both kiranas and retailers are impacted by rising quick commerce, Central India is the only place where the impact on retailers "has been higher than that of kiranas as per survey," it added.
Around 46% of the surveyed users indicated they shop for their entire month's grocery on quick-commerce apps, while 25-26% indicated they use the apps for top-ups, BofA said.
Also, 45% users indicated that delivery speed is of utmost importance for them versus 17% users preferring discounted offers or free delivery.
"As 61% users compare pricing; we see users switching along platforms to look for a cheaper alternative. This should keep competitive intensity high as other platforms look to target the exiting quick commerce users," BofA said.
Geographical Divide
No one platform was strong across all geographies, the survey showed. A total of 58% North Indian users indicated Blinkit as their preferred app, as compared to 48% opting for Zepto and 44% choosing Instamart.
In the South, Instamart was the most preferred by half of the surveyed users, followed by Zepto and Blinkit. In West India, Zepto and Blinkit were preferred by 57% and 55% users, respectively, it added.
Across East and Central India, the preference gap was wider, with Blinkit the clear top choice. Around 63% respondents in East India preferred the Zomato arm, and 57% of surveyed users in Central India opting for it.
The data was further split into the type of cities where the survey respondents lived. It was found that 56% of metro city users preferred Blinkit, followed by 52% opting for Zepto and 49% choosing Instamart.
In tier-2 and 3 cities, the surveyed users indicated 63% preference for Blinkit. However, BB Now or BigBasket sprung ahead for the second choice with 36% surveyed users opting for it, followed by 35% preferring Zepto and 28% Instamart.
Shares of Zomato and Swiggy, the two listed platform entities were trading in different trajectories on Monday. At 2:30 p.m., Zomato was down 2.01% at Rs 222.94 apiece on the NSE, whereas Swiggy was up 0.37% at Rs 351.95. In comparison, the benchmark Nifty 50 advanced 1.42%.
