Swiggy and Zomato have now become synonymous with food-delivery and yet it seems as if both startups have very different ideas on how they plan to conquer the world.

But first, a brief on all what’s similar between the two unicorns.

Both Zomato and Swiggy have raised large sums of money in a bid to reach as many people as possible.

The premise is simple — Scale.

The food delivery business is a numbers game. Aggregators have to make big investments in technology and manpower to fulfil orders that usually cost a couple of hundred bucks.

And for the business model to be financially viable, you’ll have to serve as many customers as you can.

The more the customers, the better you chances of turning a profit. It’s just how things work.

Though it seems they are playing the same game, if you zoom in to the detailed strategy of these companies, you will be surprised to find they are playing completely different games.

Let’s start with Zomato.

Zomato is trying to be a one-stop-destination for foodies across the country. Whether you want to order in, go out for a meal, or simply lie in bed thinking about what you’re going to eat on a cheat day, Zomato’s got you covered.

In fact, it’s currently the only app in India which acts as an extensive encyclopedia of restaurants, complete with ratings, average cost, menus and reviews.

So even if there’s a restaurant on the side that’s not doing home delivery, Zomato is likely to have the restaurant catalogued on its app.

Zomato even has their own streaming service replete with about 18 original shows just to keep you consumed. And this tells you something very important. Zomato’s focus is on food and food alone.

And it wants to capture the whole value chain — from restaurant discovery to delivery.

Swiggy in turn doesn’t do any of this. Instead, they’re focusing on their delivery ecosystem to explore new categories.

Think groceries, medicines etc. they are using their delivery personnel to run errands for people who don’t have the time to do it themselves.

So yes, Swiggy is looking beyond the food space, whilst Zomato is only talking food.

Granted both companies have their eyes👀 set on achieving a path to profitability, but it’s clear that they are beginning to adopt very different strategies to get to the end goal.

Learning from the story
1. Zomato & Swiggy knows their respective strengths & they are focussing on their own strengths.
2. Zomato & Swiggy represent New Age Business Model; which is contradictory to traditional business assumptions.

Questions to ask ourselves
1. What is our strength & how do I build a business based on our strength?
2. What is New Age Business Model & how its different from Traditional Business Models?
3. How can I build my business based on New Age Business Model framework?

If you really want to build a profitable, Scalable, Valuable New Age Business like Zomato & Swiggy; here’s my personal invitation to our seminar Business On Autopilot

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