India's online food delivery industry is entering a new phase of competition as Swiggy and Zomato shift their focus from simply defending market share to expanding India's digital food ordering ecosystem. While both companies continue to dominate the sector, emerging platforms such as Rapido's Ownly, Flipkart's upcoming ONDC-powered service, and Swish are attempting to disrupt the market with new business models centered around affordability and operational efficiency.
Unlike previous years, the competition is no longer solely about taking customers away from rival platforms. Instead, companies are trying to attract millions of Indians who have never ordered food online before, creating a much larger addressable market.
India's Food Delivery Market Has Massive Growth Potential
Industry estimates suggest India has more than 700 million internet users, while approximately 200 million people actively use digital payment platforms. However, only around 20 to 30 million consumers regularly order food online, indicating enormous room for expansion.
Market players believe the industry could grow four to five times if affordable pricing, improved accessibility and better customer experiences encourage more households to adopt online food delivery as part of their routine.
This untapped customer base has become the primary battleground for both established companies and new entrants.
Rapido, Flipkart and Swish Challenge Market Leaders
Rapido has entered the food delivery segment with Ownly, which has reportedly secured around 7% market share in Bengaluru while processing over 40,000 daily orders.
Flipkart is also preparing its entry through an ONDC-powered food delivery platform. The company plans to first test customer response in Bengaluru before gradually expanding to other cities.
Meanwhile, Swish is growing its presence by operating cloud kitchens in densely populated locations, enabling delivery times of approximately 10 to 20 minutes.
These companies are attempting to differentiate themselves through affordability, faster deliveries and lower commissions for restaurants.
Swiggy and Zomato Focus on Sustainable Growth
Rather than matching every low-cost strategy, Swiggy and Zomato are pursuing different approaches.
Swiggy has expanded its budget-focused platform Toing, offering restaurants lower commission structures while maintaining a sustainable revenue model.
Zomato's parent company Eternal is investing in Bistro, a rapid food delivery service built around optimized kitchen operations, automation and high-volume meal preparation. Instead of launching a separate value platform, affordable meal options have been integrated directly into the Zomato app.
Both companies argue that long-term success depends not only on pricing but also on efficient supply chains, consistent food quality and reliable customer experience.
Zero-Commission Model Faces Sustainability Questions
Several new platforms are promoting zero-commission models to attract restaurant partners. However, industry leaders question whether such models can remain financially viable over the long term.
Food delivery platforms continue to incur significant expenses, including delivery partner payouts, technology infrastructure, customer acquisition and platform maintenance. Many experts believe these operational costs will eventually require alternative revenue mechanisms even if commissions are temporarily reduced.
As competition intensifies, sustainable business models are likely to become an important differentiator.
Restaurants Gain Greater Negotiating Power
Restaurant owners have long expressed concerns about high platform commissions, advertising expenses and mandatory discount campaigns imposed by dominant food delivery platforms.
With multiple competitors now entering the market, restaurants may gain stronger bargaining power and improved commercial terms. Lower commissions, better visibility options and diversified partnerships could help improve profitability for restaurants while offering consumers more choices.
Industry observers believe this increased competition could create a healthier marketplace for both restaurant partners and customers.
India's Next Food Delivery Battle
The future of India's food delivery market will likely be shaped by the company that successfully brings the next 100 million users online.
Rather than competing solely for existing customers, platforms are investing in affordability, operational innovation, faster deliveries and improved restaurant relationships to expand the overall market.
As Swiggy, Zomato, Rapido, Flipkart and newer startups continue experimenting with different business strategies, the race is shifting from market share protection to creating India's next generation of digital food consumers.
FAQs
1. Why are Swiggy and Zomato focusing on new users?
India still has relatively low online food delivery adoption, giving companies significant room to attract first-time users.
2. Which companies are challenging Swiggy and Zomato?
Rapido's Ownly, Flipkart's ONDC-powered food delivery platform and Swish are emerging competitors.
3. What is Rapido Ownly?
Ownly is Rapido's food delivery platform aimed at offering affordable services and lower commission models.
4. What is Flipkart's food delivery strategy?
Flipkart plans to launch an ONDC-powered food delivery service, beginning with Bengaluru before expanding nationwide.
5. Why is the Indian food delivery market attractive?
Only around 20–30 million Indians currently order food online despite having hundreds of millions of internet users.
6. What is Swiggy Toing?
Toing is Swiggy's budget-focused food ordering platform designed to offer affordable meals.
7. What is Bistro by Eternal?
Bistro is Eternal's rapid food delivery model built around optimized kitchens and efficient meal preparation.
8. Why are zero-commission models being debated?
Many industry experts believe such models may struggle to remain financially sustainable due to operational costs.
9. How will restaurants benefit from rising competition?
Restaurants could negotiate lower commissions, better commercial terms and reduce dependence on a single platform.
10. What is the biggest opportunity for India's food delivery industry?
The biggest opportunity lies in converting millions of first-time internet users into regular online food delivery customers.
Conversation
Be kind and stay on topic. Comments are moderated; abuse, spam and personal attacks are removed. Report a problem