Can Thrive Break the Zomato-Swiggy Duopoly?
The fast-growing food delivery market in India, standing at USD 36.3 billion in 2023, has been a hotly contested space between two giants, Zomato and Swiggy, for a long time now. Both of them continue to reign supreme with virtually no other competitor in sight that aggregates millions of restaurants across the country. It has become a habit for internet users to go to either of these platforms to not only order food but also enhance their dine-in experiences. However, a fresh entrant on the block, Thrive, seems to be ready to break this duopoly with its fresh outlook on food aggregation and delivery. Karan Chechani, Co-founder, Thrive shares what makes the brand different from market giants Swiggy and Zomato, while highlighting the reasons why Thrive wants to disrupt the food aggregator and delivery market Q] What prompted you to start Thrive? Q] How would you describe the Thrive of today? What sets it apart from other food aggregators and delivery platforms? Q] How are you planning to serve the end consumer while building this ecosystem for your restaurant partners? Q] You recently launched your first campaign ‘Kuch Bhi Nahi Chalega.’ Can you tell us more about the insight that led to it and the process of creation? Q] As you said, food ordering is a habit that has been cultivated by these brands over the years. What do you think you have that can change this?
Founded by Karan Chechani, Krishi Fagwani, and Dhruv Dewan, Thrive, has been in the restaurant aggregation business since 2020. The platform started as a space for restaurants to create their micro-sites and get direct customers, but it is now expanding into a community-centric platform that facilitates food discovery as well as delivery for users. Backed by giants like Coca-Cola and Jubilant FoodWorks, Thrive is not only aiming to improve the food discovery experience for customers but also simplifying the process for its restaurant partners with backend support, minimal commissions, and giving them control over customer data. But is that all that is required to break the status quo?
As per Viren Razdan, MD, Brand-Nomics, the time is right to shake the duopoly. “There is a spot for a challenger at this end. Swiggy and Zomato have become the FedEx for food but they are only focussing on access and delivery. None of them are moving beyond this space. While Zomato has tried to move the needle by getting food delivery from other cities, there is nothing more happening in the space. If brands like Thrive can deliver on the promise that they are making, they can become a strong competitor to these two.”
Thrive is essentially working on a two-pronged approach, trying to cut costs for restaurants that pay for discovery, delivery, and commissions on other aggregator platforms by giving them direct access to customer data, building a community-centric discovery and recommendation platform, and charging a lesser commission. They are also managing delivery by using fleets from players like Dunzo, Porter, and Rapido, etc, helping them further streamline their cost operations.
Nisha Sampath, Managing Partner of Bright Angles Consulting feels that Thrive has rightly understood the pain points of restaurants, which can be a game changer for the industry. She further adds, “They are bringing in a fresh hyper-local touch to food delivery platforms by putting restaurants directly in touch with customers. This could be a great opportunity for them to build upon as we all are missing that feeling of calling our neighbourhood restaurant and telling them our specific requirements. For example, if someone wants their dish to be less spicy, they can add that request in text while ordering from other apps. But the restaurant might or might not follow through. On the other hand, if I can somehow communicate with the restaurant directly, there are better chances of that being followed. And if I order from them regularly, they will follow it even without me mentioning.”
However, it is not the first time that a new entrant is trying to disrupt the food delivery space. Over the past decade, several players have entered and left the market. How can Thrive change this curse?
According to experts, the platform has a lot of potential but they need to market it smartly. Their latest ad campaign, ‘Kuch Bhi Nahi Chalega’ seems to be faltering at this aspect.
Sampath notes, “While the insight is good and the ads are funny, they failed to convey to me why should I be switching to Thrive. Their whole business model, from what I have understood, is about ordering directly from the restaurant but the campaign fails to establish that.”
Brand Guru Jagdeep Kapoor, Founder, Chairperson and MD, Samsika Marketing Consultants Pvt Ltd.adds, “Being a late entrant, a differentiated approach was needed by Thrive, which it has attempted. The campaign is trying to educate consumers to apply their minds and choose before putting something ‘in their mouth,’ including encouraging ‘word of mouth’ instead of blindly going with the approach of ‘anything will do.’ It is an interesting differentiator for connecting with the consumer.
However, I find the connection of the name ‘Thrive’ with the value proposition ‘take food personally,’ slightly difficult to digest. The point of ‘Kuch Bhi NAHI Chalega’ comes out well in the campaign. Though, ‘take food personally’ could also mean ‘collect your food’ which is contrary to ‘food being delivered to you.’ The campaign drives home the point that you must have a clear choice about food, but I am not sure that the brand strategy is as clear in connecting various elements in its communication.”
Further, the app itself needs some improvement. Sampath feels that the app’s UI is not very smooth and is difficult to navigate.
Razdan notes, “While the campaign and brand look promising, the whole thing falls apart when I open their app. I cannot find the connection between the ads and what is there on the app. The personalisation part just doesn’t translate.”
Overall, while Thrive looks like a promising entrant in a market that is vying for change, they need to improve on their communication as well as application to cut through the duopoly that Zomato and Swiggy have maintained.
Thrive began in 2020, much like a lot of other brands that sprouted during the pandemic with the idea of solving COVID-induced problems. We were already engaged with several F&B platforms and noticed that the number of orders were reducing for these restaurants. We reached out, and asked them how we could help. So, we were able to understand their key pain points, one of which was the high commission that other food aggregators were charging. Also, they had no ownership over the data of customers they were serving regularly. That started this mission to build Thrive as we genuinely wanted to help them.
We are different in two aspects: first, we see food in a different light. It is not just another basic commodity that is available at a click. Food is an integral part of our lives and we wanted to integrate that aspect into the digital experience too for consumers. Second, our value proposition for restaurant owners – we are trying to solve discovery and lead-generation for them in a sustainable manner at much lenient commission rates.
We firmly believe that food discovery is a communal experience. We intuitively discover new places to eat, and new cuisines to try based on our conversations. In the digital world, this discovery happens via social media platforms, influencers, etc.
With Thrive, we want to replicate this experience online in an authentic manner. So, we have launched ‘Thrive Feed,’ wherein people can have real conversations about food. There is a community of foodies who will be sharing their recommendations, suggesting the best places to eat and the best foods to try. This is just the start of it.
Q] Tell us more about Thrive communities. How many people are a part of it?
We have just started building these communities. At first it was an invite-only format and included some of the finest foodies in our roster. Now, we are opening it up for everyone. Our customer side of the platform, which is the Feed, has been launched only in Mumbai as of now. We will take another 12 months or so to expand beyond Mumbai, after learning from our experiences here.
As I said, at Thrive, we see food beyond a commodity and we wanted to reflect that in our first campaign. ‘Kuch bhi’ (anything) is a very standard response that we get once we ask someone what they want to eat. In the current times of delivery apps, we take decisions based on what is easily available or what has the best discount. But we want that to change. That’s how ‘Kuch Bhi Nahi Chalega’ was born. The idea was initiated in-house and we worked with Scroll Back Studios to create the campaign. It is a digital-first campaign, planned to run for four weeks in Mumbai only.
Rightly said, it is a habit, and these platforms have worked exceptionally well to build it. We do not see ourselves as someone who wants to pull these brands out of the market. We are simply offering food discovery via communities, which is an add-on to what they already have in place.
I think most of us already have two food-delivery apps on our phones. And there is a space for the third one. We aim to add to the food discovery, delivery, and booking experience while helping the restaurants at the same time. The market is looking forward to disruption.
Tags : #e4m #IMPACT #Food #Swiggy #Urge #foodapp #UrgeFoodApp #fooddeliveryapp #zomato #newapps #IndianStartups