Competition poses no risk to food delivery, company in a strong position: Swiggy

As competition in the food delivery sector intensifies with new entrants, Swiggy believes it’s in a strong position with no near-term risks to its growth, the company said during its June quarter results.

Its comments come as new players like Rapido’s Ownly and Flipkart’s food delivery venture (via ONDC) get in on the action.

“We believe our competitive position in food delivery is durable with no near-term risks to the underlying growth trajectory. We have been agile to evaluate possible opportunities across pricing, formats, and even separate apps to open up the TAM (total addressable market) further while maintaining the economics of the core platform,” Swiggy said in its shareholders’ letter.


“The depth of our restaurant partner base and our tech and operational stack is fully built and scaled and we are well equipped to meet each need-state at a fraction of the cost a new player would incur,” it added.

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To compete with Ownly, which focusses on consumers seeking affordable food delivery options, Swiggy launched a separate app, Toing, last September.

While Toing's app download numbers have been better than Ownly's as of June, a recent report by JP Morgan highlighted that Toing is not adding new supply but poaching price-sensitive customers with lower prices and no platform fees.

Last week, Eternal founder Deepinder Goyal said that Zomato is not putting much effort into dealing with competition from apps focussing on lower-priced items.

“These platforms are offering the same restaurants (as others), similar or longer delivery times, and lower prices funded by lower commissions and delivery fees, making the revenue gap even more unsustainable… The customer traction is purely price-driven,” Goyal said in a letter to shareholders about Eternal’s June quarter results.

Eternal’s answer to low-priced services is Bistro — Blinkit’s in-house food delivery platform. Bistro offers snacks, quick meals, beverages, and desserts made in its own kitchens, delivered within 10 minutes in a 2-3 km radius.

“If you want to make food delivery work at INR 50-150 price points, you can't do it without supply chain innovation,” said Goyal. “We're rethinking kitchen operations from first principles here —designing custom equipment, workflows, and automation purpose-built for high-volume, limited-menu formats.”

Swiggy reported a 34% year-on-year (YoY) decline in its net loss to Rs 791 crore in the June quarter of FY27. Its revenue from operations rose more than 37% to Rs 6,812 crore in Q1 of FY27, compared with Rs 4,961 crore in the year-ago period.