January 23, 2021

Highest-ever demand to Zomato, Swiggy on New Year Eve

Zomato and Swiggy food distribution services aren’t complaining about 2020, or at least the last day of the year. The market was off-charts during dinner time on December 31, enabling restaurants to offset the loss caused in several states due to night-time curfew.

“The demand last night was much higher than what we could process. We ran out of delivery partner capacity much before peak time. If we had unconstrained supply, we could have hit Rs 100 crores of GMV yesterday. Need to do better next time,” said the Zomato founder and CEO Deepinder Goyal.

Swiggy, the other food technology unicorn, told ET Now earlier that in its six years of operation, it had seen the biggest demand ever.

During dinner time, the company said its traffic increased by 100 percent, with Tier 2 and 3 cities like Jaipur, Vizag, etc. rising by almost 200 percent. There was also a rise of 150 to 200 percent in Tier 3.4 cities, higher than that seen in metro cities such as Berhampur, Rourkela, Karimnagar, etc. On its website, new customers have doubled.

Swiggy COO Vivek Sunder told ET NOW, “we saw growth across orders, value and the number of customers. There are two macro trends- one of them is obviously because of the nature of offices being work from anywhere- a lot of talent has migrated to their hometowns. Secondly, the constraints put to maintain social distancing and gatherings outside. So, this population coupled with the phenomenon of staying at home, these cities just exploded”.

On peoples’ menu were usual suspects such as biryanis, pizza, garlic bread and desserts.

“All of our support people were working even harder than they usually do. They coped a lot better than I imagined because the spike was way beyond expectations. We did have some misses but consumers were also patient. Cancellations were very few and we managed to fulfil most of the orders. We are extremely optimistic about 2021. We are entering January with the healthiest user base,” added Sunder.

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