Food Delivery Trends: How Swiggy, Zomato Are Changing India’s Eating Habits

Convenience, affordability, and quick-commerce are driving a new phase of growth in the online food delivery sector

New Delhi, 19 August 2025

The Indian food delivery industry, with its two largest firms, Swiggy and Zomato, is currently going through a transitional phase as changing consumer demand, inflationary impacts, and rapid growth in the market for quick-commerce are reshaping the industry. Once a rapidly growing sector, the industry is entering a phase where increased innovation, a focus on efficiency, and paths toward sustainable profit will be required.

Data from the industry is showing that growth in the household delivery market and food delivery sector over the last several months is decreasing, reflecting consumers looking to reduce discretionary expenditures. Rising prices for raw materials, the cost of delivery logistics, and market saturation in urban environments are impacting promising paths to future expansion. The entrance of quick-commerce actors providing grocery delivery within a period of 10-15 mins has delayed growth in household food delivery markets. In order to respond, both Swiggy and Zomato have had to change direction with their action plans. Each company must think about product diversification, costs to consumers, and the delivery experience.

Swiggy has opted to fully commit to testing its 10-minute food delivery pilot, signalling an imminent entrance of ultra-fast convenience for urban consumers. The company has recognized a recent focus on inflationary prices by young customers. In addition, Swiggy has implemented discounts in new value addition like meal boxes and meal combinations. These products are dealing directly with the majority of users of the app, which are mostly students and young professionals.
In response to rising operational costs, Swiggy has quietly raised its platform fee from ₹12 to ₹14 in select metro cities. The increase has drawn some light criticism, but experts believe that consumers will stay engaged as long as discounts and loyalty programs provide value.

Zomato Strengthens Blinkit While Shrinking Food Delivery

Zomato, on the other hand, has wound down its 15-minute food service but continues aggressively expanding through its quick-commerce arm Blinkit, believing that food delivery will sustain a 30% growth rate for the next five years in India, buoyed up by urban consumption and penetrating Tier-II cities.

Zomato believes the company will have Blinkit as its strongest growth engine, complementing its grocery, daily essentials, and instant weekdays meal offerings. Analysts believe this diversification slightly hedges Zomato against the slowing pace of traditional restaurant deliveries.

Students and Young Professionals Are Still Important

The sustainability of these platforms relies heavily on millenials and Gen Z, both demanding convenience while keeping affordability top of mind.

Suryansh Kumar Singh, a university student who uses the app regularly, said: “According to students like me, Swiggy and Zomato are no longer strictly food apps. They are a way of life for us. Whether it’s for a late-night study session, a group project, or even a quick lunch to eat alone, this app makes it simple. Sure, the prices have increased, but the discounts and offers still keep us engaged. It’s almost as if they can sense my hunger pangs when they arise and what I will order.” His expressions reflect how a larger demographic of young Indians are also becoming dependent on these delivery services for not only food but for all its associated cultural and social convenience.

Quick-Commerce: The Next Frontier

Swiggy and Zomato are investing heavily in dark store networks and AI-enhanced delivery logistics to grow their quick-commerce businesses. With average delivery times less than 12 minutes in a majority of they metros, the consumer expectations are shifting.

“However the sustainability of these businesses is still varying expectations and scaling concerns. Analysts have warned the current pace of investment may not be sustainable financially, unless platforms find new ways to monetize the business or streamline logistics to reduce expenditures.”

Perspective: What the Future of Food Delivery Looks Like

Swiggy is betting on speed/affordability.

Zomato is scaling through Blinkit and then ensuring their core food business continues to grow.

Quick-commerce is changing both eating and shopping habits, but profitability issues persist.

Despite this headwind in the near term, the long-term outlook of India’s food delivery market remains bright. With roughly 500 million smartphone users and an increasing appetite for convenience-fueled dining options, firms like Swiggy and Zomato are going to have a profound impact on how Indians eat in the next ten years.