India’s food delivery and quick commerce space is witnessing an intense competition, as established players Zomato and Swiggy escalate their efforts to dominate the market. Both companies are racing to deliver food to customers in record time, with promises of under 15-minute deliveries. The rivalry is further fueled by the entry of agile new players, adding pressure to the established giants.
Swiggy’s Expanding Strategy
Swiggy has taken significant steps to strengthen its position. The company recently launched two new standalone apps: Snacc, for 15-minute food deliveries from its centralized kitchens, and Pyng, a platform connecting users with professional service providers such as career coaches, legal consultants, and yoga instructors. Additionally, Swiggy announced plans to spin off its quick commerce service, Instamart, into a separate app.
Swiggy already offers quick food delivery via Bolt, housed within its primary app alongside other services like Instamart, Dineout, and Scenes. However, the introduction of standalone apps like Snacc and Pyng hints at an evolving strategy to address specific market needs. Aakash Agrawal, head of digital and new-age business at Anand Rathi Investment Banking, commented, “Quick delivery services are a customer-driven demand. Platforms need to adapt to remain competitive.”
Zomato’s Bistro and the Market Dynamics
Not to be outdone, Zomato recently launched Bistro, its answer to Swiggy’s Snacc, aiming to tap into the burgeoning demand for ultra-fast food deliveries. The quick commerce space has also seen players like Zepto, which earlier launched a dedicated app for its café offering.
As of the September quarter, Swiggy reported food delivery revenue of ₹1,577 crore, contributing 44% to its overall topline. In comparison, Zomato’s food delivery revenue stood at ₹2,012 crore, making up 42% of its total revenue.
The Quick Commerce Gold Rush
The quick commerce market, currently valued at $5 billion in gross merchandise value (GMV), is projected to grow to $45 billion by 2030, constituting 4% of India’s total grocery market, according to a report by Bernstein. The space has attracted interest from industry giants like Amazon and Flipkart, which have pivoted toward faster delivery models.
Competitive Intensity and the Challenges Ahead
Despite the growth potential, the rapid launches in quick commerce often seem reactive. For instance, Swiggy’s Snacc was launched on January 8, shortly after Zomato’s Bistro debut on December 12. Similarly, Zepto’s café app prompted Swiggy to introduce Bolt in October. Other players like Magicpin and Ola have also entered the space with services like MagicNow and Ola Dash, respectively.
However, such rapid expansions raise questions about market saturation and potential cannibalization. “If customers stay on the platform, cannibalization is less of a concern, but some restaurant partners with similar offerings might feel the impact,” Agrawal noted.
Looking Ahead
The quick commerce sector is expected to see continued disruption as players compete to capture market share. While Zomato and Swiggy remain at the forefront, the entry of new players and the evolving demands of consumers will shape the future of this fast-paced industry.
