How will India’s Food Delivery industry evolve in the coming years?

The Zomato vs. The Swiggy Playbook: Two Apps That Changed India Eats Again

In the past, food delivery was a type of service. It’s become a routine now. Which group emerges victorious in the competition for your next meal?

Ordering food online in India was not common ten years ago

In the present day, it has become a natural state

Zomato and Swiggy are the two most prominent names that describe this change. They didn’t just create a market; they also changed consumer behavior

Restaurants changed. Eating habits changed. Pricing for food differs from one another

The survival battle lies beyond the convenience of a 30-minute delivery. Are these apps capable of sustaining their growth, Or is India’s food supply shortage becoming more prevalent?

Dining out, Ordering and more Ordering

India’s love for dining out was always present. The task of preparing restaurant meals from scratch at home was a difficult one

Enter Zomato. The original purpose of the site was to assist in finding restaurants. Then it added delivery. In 2014, Swiggy was established with a focus on delivery. The game changed

They solved logistics. Built hyperlocal networks. Offered deep discounts

Consumers got hooked. Revenues in the restaurants skyrocketed

The shift was inevitable. Is there any reason to leave the house when a meal can be delivered in mere minutes?

COVID-19 only accelerated this. Food delivery should not be limited to a single option by 2021. It was a lifestyle that everyone followed

The competition for Market Share

Zomato and Swiggy spent years hoarding money to acquire customers. Deep discounts. Free deliveries. Cashback offers

It worked

Swiggy pioneered cloud kitchens. Zomato expanded internationally. Swiggy One and Zomato Gold were both introduced as loyalty programs to lock in users

The number of monthly active users on Zomato was over 17 million by 2023. Swiggy was not far behind

The growth was not without its challenges

Margins were razor-thin. Low wages were the focus of protests by delivery partners. High commissions were a major challenge for restaurants

The gold rush of delivering food was coming to an end. Making money was the only way to survive

Pivoting to Profitability

Discounts are not a permanent solution. Investors wanted profits

Unprofitable global operations were terminated by Zomato. Blinkit was acquired by it to expand into speedy commerce. It raised delivery charges

Swiggy took advantage of Instamart’s offer to sleep with his girlfriend. It also reduced discounts and concentrated on slashed deals for premium customers

The plan is to achieve reduced orders with increased margins

Consumers felt the shift. Prices went up. Free delivery disappeared. The platforms were left with no alternative. They were compelled to earn money

The Restaurant Dilemma

The backbone of food delivery is usually restaurants. Nonetheless, they are also the most critical individuals to its existence

Commissions on platforms can reach 30%. The survival of small restaurants is a challenge

Numerous individuals endeavored to flee. Certain individuals established their own delivery systems. ONDC, the government-supported alternative, was also taken up by some

Yet, most stayed. Why?

The need for Zomato and Swiggy control is paramount. The presence of a restaurant on these platforms is crucial to its success

The platforms know this. They are continuously raising their commissions. It’s a delicate relationship that could potentially break down at any time

The Quick Commerce Gamble

The need for food delivery is not adequate. Rapid commerce is the reason why both companies place significant bets

Within minutes, Swiggy’s Instamart delivers groceries to your doorstep. Blinkit was purchased by Zomato for 4,447 crore

Is there any rationale behind consumers ‘trust in these sources for food?. Why don’t we move on to more substantial matters?

However, the brutality of fast trade is even more evident. High costs. Low margins. Zepto and Dunzo were fierce competitors

However, neither company can overlook it. The future of grocery delivery is ripe for the decline in food delivery