Swiggy, the leading Foodtech company, has introduced a co-branded credit card in collaboration with HDFC Bank, aiming to attract more customers and gain a competitive edge over its rival, Zomato.
According to a joint statement by the companies, the co-branded credit card will utilize Mastercard’s payment network and will be gradually introduced over the next 7-10 days. After the rollout, eligible customers will have the opportunity to apply for the card.
By taking this step, Swiggy has aligned itself with other major players like Flipkart, Myntra, and Paytm in offering co-branded credit cards to its customers.
Earlier, Zomato, Swiggy’s competitor, used to provide co-branded credit cards in collaboration with RBL Bank. However, both Zomato and RBL Bank made a joint decision to end their partnership earlier this year.
Read More: Zomato and RBL Bank to end co-branded credit card partnership, users to receive new cards
According to the statement, Swiggy’s co-branded credit card will provide users with a 10% cashback on various services, including food delivery, grocery delivery, and dining out. Additionally, users can enjoy a 5% cashback on other popular e-commerce platforms like Amazon, Flipkart, and Myntra. The cashback benefits will be facilitated through Swiggy Money.
As an added incentive, Swiggy is presenting a complimentary 3-month membership to Swiggy One. Moreover, users will have access to the rewards and perks provided by Mastercard, including privileges like complimentary stay and dine opportunities, as well as complimentary loyalty memberships, among other benefits.
Swiggy’s CFO, Rahul Bothra, stated that customers are actively seeking rewards and benefits for their expenditures, and this initiative is a direct response to meet this demand.
With Swiggy claiming to have achieved profitability in its food delivery business as of March this year, this strategic move appears to be an effort to attract new customers and bolster its overall revenue. In the food delivery landscape of the country, Swiggy and Zomato dominate as a duopoly, with ONDC slowly emerging as a potential contender.
Read More: Swiggy’s strategic initiatives pay off as food delivery business turns profitable
Due to the competitive nature of the industry, both Zomato and Swiggy frequently engage in competition, frequently introducing new and sometimes similar offerings. Just recently, Swiggy unveiled a dashboard to aid its partner restaurants in devising expansion strategies. Interestingly, this announcement closely followed Zomato’s launch of ‘Zomato Food Trends,’ a service designed to provide data insights to its partners.
Read More: After Zomato, Swiggy unveils powerful dashboard to assist restaurant expansion with data insights
Earlier this month, Swiggy made a noteworthy expansion into the food and grocery retail market through the acquisition of LYNK Logistics, an FMCG retail distribution company. Additionally, in a bid to reinforce its position, the company announced a $50 million ESOP liquidity program just this week.
Read More: Swiggy acquires LYNK Logistics to tap into lucrative food and grocery retail market
Also Read: Swiggy rolls out second tranche of ESOP liquidity programme worth $50 million
