Zomato Vs DoorDash: Which Local Food Delivery Service Performs Better Than Major US Competitors?

DoorDash and Zomato are focusing on increasing their active users each month, encouraging customers to order more frequently, and boosting the average amount spent per order.

The food delivery market in India has been growing rapidly, especially since Covid-19 kept people at home.

According to Statista, India's online food delivery market is expected to reach $43.78 billion by 2024, while in the US, it's projected to hit $353.30 billion this year.

Interestingly, Zomato, the Indian food delivery service, outperformed DoorDash, the US-based platform. In the last quarter of 2023, Zomato's adjusted revenue grew by 29.4% year-on-year to ₹20.3 billion, surpassing DoorDash's growth.

Image source Xicom Technologies

DoorDash reported a 27% increase in revenue to $2.3 billion, with a lower gross order value growth rate of 22% compared to Zomato's 27%. DoorDash attributes its growth to a 23% rise in total orders, reaching 37 million users, increased order frequency, and stronger ad revenue.

GIF source DoorDash Engineering

Looking ahead, DoorDash plans aggressive investments in 2024, particularly in new areas like grocery delivery and expanding globally. Both companies are strategically aiming to build a loyal customer base and achieve sustainable growth. They emphasize acquiring repeat customers through subscription programs like DashPass and Zomato GOLD to lower customer acquisition costs and improve profitability.

Grocery delivery has been a significant growth area for both platforms. DoorDash expanded its grocery delivery service, signing up 0.1 million stores in North America over the past three years.

Zomato's Blinkit delivery service saw gross order value surge by 103% in Q3FY24, driven by more customers and higher average order values.