Key Takeaways
India’s food delivery duopoly, Zomato and Swiggy, have never felt this vulnerable in recent memory. Having seen off the belated, albeit half-hearted, entry of the deep-pocketed Amazon by late 2022, their position as masters of their space seemed unassailable. That has changed over the past year.
Growth has slowed to a crawl—under 20%, year-on-year (YoY), and barely in the single digits, quarter-on-quarter (QoQ). Brokerage estimates suggest this trend will continue. In late March, Bank of America (BofA) downgraded its outlook on both stocks, forecasting food delivery to continue growing at 16-17%, YoY—lower than the market expectation of more than 20%.
Their stock market performance in 2025 has been dismal, with billions in value wiped out. While they’ve undoubtedly been dragged down in part by mounting losses from their quick commerce businesses, perhaps more damaging is the duo’s fraying relationship with restaurants. The flashpoint for this in recent times was the launch of 10-minute private-label food brands that many restaurants see as a threat to their own businesses. Restaurants have even hauled both Zomato and Swiggy before India’s competition watchdog.
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