Swiggy Expands Horizons With New Service Platforms, Soon To Deliver Advice On Diet, Love & More; Check

Indian delivery giants Swiggy and Zomato are branching into new service areas in a bid to diversify their portfolios and sustain growth as competition in the quick commerce market intensifies. According to a report by the Economic Times, both companies are testing a variety of services that could transform the way customers engage with their apps, with initiatives ranging from premium memberships to access to specialized professionals, concierge services, and even event ticketing.

Swiggy, based in Bengaluru, has begun piloting a new service marketplace named "Yello." This platform, currently in a testing phase, is set to offer users access to a range of professionals, including lawyers, astrologers, dieticians, therapists, and fitness trainers. It remains undecided whether Yello will function within the primary Swiggy app or operate as an independent platform. Reports suggested that the company says this move aligns with Swiggy's broader strategy of diversifying its services beyond food and grocery delivery, creating a consolidated ecosystem where users can find a variety of services in one place.

Swiggy is also preparing to launch a premium membership service named "Rare," designed to cater to affluent customers. Rare will offer perks like access to exclusive events, priority reservations at high-end restaurants, and other luxury experiences, tapping into an increasingly high-value segment of the market. These developments come just as Swiggy gears up for a planned stock market debut on November 13.

Meanwhile, Gurgaon-based Zomato is pursuing its own diversification strategy with a unique blend of customer service enhancements and acquisitions. Zomato is reportedly developing a new concierge service that will allow users to order food via WhatsApp and interact with human agents instead of automated bots. The company has already begun hiring for this role, which aims to provide a more personalized, accessible experience that is particularly useful for those who may not be comfortable navigating apps.

Adding to its service lineup, Zomato recently acquired Paytm's events and ticketing business for Rs 2,048 crore. This acquisition signals Zomato's entrance into the events and entertainment ticketing market, broadening its reach in the Indian e-commerce space and directly competing with established players.

Though both companies are targeting expansion, their approaches reflect contrasting philosophies. Swiggy appears committed to a consolidated platform strategy, offering services like Instamart, Swiggy Genie, and Dineout within its main app, ensuring users have access to a multitude of options in one place. Zomato, in contrast, has adopted a brand-specific approach, developing independent identities for each service. For instance, Zomato's recent ventures, including Blinkit for quick grocery delivery and Hyperpure for B2B grocery supplies, operate as standalone brands.

Market analysts suggest that these diversification efforts are crucial for long-term growth in the rapidly maturing food and quick commerce sectors. "They have shown the market that their core businesses work, but these will eventually scale to a point where growth slows," noted a Mumbai-based analyst. As food delivery matures, both Swiggy and Zomato are looking to new avenues to keep their momentum and engage broader audiences.

Swiggy's "Yello" marketplace, for example, is expected to fill a void in the market by providing a verified platform for professional services, something that platforms like Google currently offer only to a limited extent. Sources close to the company highlight that Yello's comprehensive, vetted approach to online professional services could make it a trusted one-stop platform for users looking for experts across different fields.

Zomato, on the other hand, is making strides into the handyman services market with a planned integration within Blinkit, which will put it in competition with Urban Company, a major player in that domain. Zomato's CEO, Deepinder Goyal, even stepped down from Urban Company's board last year to avoid conflicts of interest, given Blinkit's strategic expansion in this area.

In quick commerce, both Swiggy and Zomato have ventured into rapid delivery services to cater to the demand for ultra-fast convenience. Swiggy introduced "Bolt," its 10-minute delivery service for select local restaurant items, in October, while Zomato has been scaling up its quick delivery capabilities after acquiring Blinkit in 2022.