Zomato CEO Deepinder Goyal Says No Need for Separate App Like Swiggy Toing or Rapido Ownly to Target Budget Users

In a strategic move against the growing trend of app diversification, Zomato Founder and Group CEO Deepinder Goyal has stated that the food delivery giant will not create a separate app to target budget-conscious customers. Instead, the company plans to offer affordable meal options within the main Zomato app, ensuring simplicity and efficiency for users.

The statement came through Goyal’s letter to shareholders on October 16, where he outlined the company’s approach to addressing customer segments without fragmenting the brand experience.

Industry Trends: Multi-App Strategy Gains Momentum

Over the past year, several tech and delivery platforms have opted for a multi-app strategy. Competitors such as Swiggy launched Toing, and Rapido introduced Ownly, specifically catering to users seeking low-cost delivery or budget options.

This trend is seen as an effort to boost brand recall and address the challenge of cross-selling different services within one application. However, Goyal believes that this approach increases organizational complexity and might not be necessary for Zomato at this stage.

Zomato’s Unified Platform Approach

Reinforcing Zomato’s commitment to a unified customer experience, Goyal emphasized that the company’s core platform is well-equipped to meet the needs of all types of customers — from premium to price-sensitive segments.

To further attract budget users, Zomato has reduced its delivery fee for Gold members from ₹199 to ₹99, making the service more accessible to frequent customers.

“We believe that the Zomato app should be able to solve for these use cases without needing a new app,” said Deepinder Goyal. “We’ll wait and watch, and are okay being the last mover if it becomes clear that introducing a new app is the right long-term approach.”

Balancing Cost Efficiency and User Convenience

Zomato’s decision reflects a broader focus on operational efficiency and streamlined user experience. Creating and managing multiple apps can require additional resources, separate marketing efforts, and may confuse users. By keeping everything under one platform, Zomato aims to maintain brand consistency and strengthen user trust.

While Zomato remains open to adapting its strategy in the future, for now, it appears committed to building a one-stop platform for all types of food delivery needs. Industry analysts suggest that this move could help Zomato consolidate its market position while keeping operational costs in check.

FAQs

1. Why isn’t Zomato launching a separate app for budget-conscious users?

Zomato believes its main app can address the needs of all customer segments, making a separate app unnecessary and operationally complex.

2. What is Swiggy Toing and Rapido Ownly?

Swiggy Toing and Rapido Ownly are new apps launched by Swiggy and Rapido, respectively, to target budget-friendly consumers and low-cost delivery markets.

3. How is Zomato catering to budget users now?

Zomato recently reduced delivery fees for Gold members from ₹199 to ₹99, offering a more affordable food delivery experience.

4. Will Zomato consider launching a new app in the future?

According to CEO Deepinder Goyal, Zomato will “wait and watch” the market and may act later if launching a separate app proves to be the right long-term move.

5. How does this decision impact Zomato’s business strategy?

By avoiding a separate app, Zomato can focus resources on improving its existing platform, reducing complexity, and enhancing user satisfaction.