Rapido, Flipkart aim to grab a slice of India’s food delivery pie

For years, India’s online food delivery market has largely been a two-horse race. Swiggy and Zomato built an ecosystem that transformed how urban India eats, bringing millions of restaurants and customers onto a single platform. But the next chapter of the story is shaping up very differently.

Rapido, through its food delivery platform Ownly, and Flipkart, through its ONDC-based offering, are now making serious moves into the segment, signalling that the country’s food delivery wars are entering a fresh phase. Unlike earlier challengers that tried to outspend the incumbents, these new entrants are betting on one simple idea: make ordering food cheaper.

The strategy appears to be finding early traction. Rapido says Ownly has already captured around 7 percent of Bengaluru’s food delivery market, handling over 40,000 orders every day. Flipkart, meanwhile, is taking a measured approach, using the government-backed Open Network for Digital Commerce (ONDC) to gradually expand its footprint.

For the incumbents, the message is clear. Competition is no longer theoretical. Swiggy has responded by strengthening Toing, its affordability-focused platform, while Zomato parent Eternal is investing heavily in Bistro, its quick food delivery business, alongside making its flagship app more value-driven.

A market that’s still surprisingly underpenetrated

India’s food delivery market has grown into an industry estimated to be worth roughly $9-10 billion annually in gross order value, with forecasts suggesting it could comfortably cross $20 billion over the next five to seven years. Yet, beneath those impressive numbers lies a surprising statistic.

According to Rapido co-founder and CEO Aravind Sanka, India has nearly 200 million people using digital payments, but only around 20 to 30 million regularly order food online.

That gap is precisely what companies are chasing. Rather than fighting over existing customers in metro cities, the next battle will likely revolve around convincing millions of first-time users that ordering food online is affordable enough to become a habit.

That is why pricing has suddenly become the industry’s favourite weapon.

The duopoly faces its biggest strategic challenge yet

For years, Swiggy and Zomato have together controlled well over 90 percent of India’s organised food delivery market, with market estimates generally placing Eternal-owned Zomato slightly ahead at roughly 55 to 58 percent share and Swiggy accounting for around 42 to 45 percent. Smaller players have struggled to gain meaningful scale.

Ownly’s reported 7 percent share in Bengaluru suggests that regional disruption is possible if pricing remains compelling and restaurants embrace lower-cost alternatives.

Restaurants, too, have long complained about commissions and promotional costs on large delivery platforms. New entrants promising leaner economics and lower commissions could become attractive partners, especially for independent eateries looking to improve margins.

The next phase isn’t about replacing Swiggy or Zomato

Neither Rapido nor Flipkart is likely to dethrone the incumbents overnight. Swiggy and Zomato possess enormous logistics networks, strong restaurant relationships, sophisticated technology and years of customer loyalty.

But disruption rarely begins with market leadership. It begins by expanding the market itself.

If lower delivery costs and improved economics persuade millions of Indians to place their first online food order, India’s food delivery market could become substantially larger than it is today. In that scenario, the biggest winners may not simply be the platforms with the largest market share, but those that succeed in bringing entirely new consumers into the digital dining economy.