Food Delivery Slowdown – Swiggy and Zomato Rethink Strategy as Orders Decline

Swiggy and Zomato, India’s leading food delivery giants, are facing a slowdown. What was once a rapidly growing market is now adjusting to shifting consumer habits, with rising quick commerce and lower discretionary spending leading to softer demand across the board.

In recent quarters, both companies have faced slower order volumes and muted growth. Here’s how they’re responding to the shift and what they’re betting on to stay ahead.

Zomato: Scaling Back, Shifting Focus

Swiggy and Zomato, the two titans of India’s food delivery space, are feeling the pinch of a cooling market.

Zomato’s March quarter was tough. Its parent company, Eternal, reported a steep 78% drop in year-on-year net profit, down to ₹39 crore. While food delivery is still its core business, the segment is slowing down, and CEO Deepinder Goyal points to one main reason: people are spending less on ordering in.

As part of its course correction, Zomato has pulled the plug on two services that didn’t take off:

• Goodbye to ‘Quick’ and ‘Everyday’: The company shut down its 15-minute delivery promise and its homestyle meals offering. According to Goyal, current infrastructure just can’t support consistent experiences at such high speeds — and demand didn’t justify the effort.

• Hello, Blinkit Bistro: Instead, Zomato is betting on Blinkit’s Bistro — a curated meal service made in Zomato’s own kitchens, similar to what Zepto Cafe is doing. It’s already running in Delhi-NCR, Mumbai, and Bengaluru with over 100 locations.

And in a less popular move, Zomato has reintroduced its ‘rain fee’, which will now apply to even Gold members — a shift from its previous free-weather protection for premium users.

Swiggy: Fast Food, New Features

Swiggy isn’t immune to the slowdown either. It posted a net loss of ₹1,081 crore in Q4, almost twice what it lost the year before — mostly due to aggressive investments in its quick commerce operations. Still, its food delivery business grew 17.6% YoY, slightly edging out Zomato’s 16%.

Here’s what Swiggy is doing differently:

• Speed via Bolt: Its Bolt service — focused on 10-15 minute food delivery — is gaining traction. Bolt now contributes 12% of Swiggy’s total food delivery volume and is available in 500+ cities.

• Exclusive dishes through ‘Drops’: Swiggy recently launched ‘Drops’, giving users first access to limited-edition dishes from top chefs. It’s a smart move — customers get something fresh and exciting, while restaurants get to test new menu items and build loyalty.

Swiggy and Zomato Fight Back

Swiggy and Zomato know the easy days of food delivery growth are behind them — at least for now. As more people turn to quick commerce and home cooking, these companies are trying to evolve: shifting focus, testing new formats, and streamlining operations.

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Whether that’s enough to revive growth in a maturing market remains to be seen — but one thing’s clear: the food delivery wars are far from over.

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