Key Points
Online food delivery platforms Zomato and Swiggy are exploring innovative strategies to attract value conscious, bottom-of-the-pyramid consumers amid a sluggish expansion in customer acquisition.. Bengaluru-based Swiggy has launched a pilot called Pockethero in about 15 cities in late November that will mainly target students and freshers looking for more affordable food delivery options..
Pockethero aims to make food delivery accessible to a set of users who today may find online food delivery less value for money..
Bank of America (BoFA) Securities said in a research note earlier this week, citing Sensor Tower data, that there was only a marginal growth or even drop in daily active users (DAUs) for food delivery platforms over the last six months...
While this increased order frequency accrues in the form of margins over a longer period of time, the platform, as a whole, becomes less attractive to a new customer, a Mumbai-based internet sector stock analyst said.. Zomato and Swiggy have been experiencing growth from an expanding base of transacting users who place orders at least every month...
In its recently announced half-yearly earnings, Dutch consumer internet investor Prosus, an investor in Swiggy, said the platform clocked a 17% year-on-year rise in food delivery gross merchandise value (GMV) to $1.43 billion during April-September 2023, led by growth in transacting users driving double-digit order growth in addition to an increase in average order values (AOV)...
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