India's leading food delivery platforms, Swiggy and Zomato, are now fiercely competing in the affordable meal segment, aiming to make online food ordering a daily habit for millions. Both companies are rolling out new services and features, specifically targeting meals priced around 200 to 250 rupees, to attract budget-conscious consumers and office-goers. This strategic shift comes as the Indian online food delivery market matures, moving beyond new user acquisition to focus on increasing order frequency and expanding into smaller cities.Industry data suggests the market will grow significantly, from $9.1 billion in 2024 to nearly $27 billion by 2030.[whalesbook+4]
Swiggy's Multi-pronged Approach to Affordability
Swiggy has launched several initiatives to improve meal affordability and capture the high-frequency, budget-friendly market. One key offering is its "99 Store," an in-app section featuring single meals priced at just 99 rupees.These curated dishes, including items like rolls, biryani, noodles, and burgers, come with free delivery when customers select the 'Eco Saver' delivery mode.The "99 Store" is already available in over 175 cities across India, including major hubs like Bengaluru, Delhi, Hyderabad, and Kolkata.[hospitality+8]
Beyond the main app, Swiggy also operates "Toing," a standalone application specifically designed for budget-conscious users.Toing offers meals starting from as low as 49, 69, and 99 rupees, with most dishes priced under 250 rupees.The app promises guaranteed lowest prices, zero platform charges, and zero packaging fees, aiming to eliminate hidden costs for consumers.Toing has seen rapid expansion, now available in 50 cities less than 10 months after its launch in Pune.Rohit Kapoor, CEO of Swiggy Food Marketplace, emphasized the company's commitment to value. "At Rs 99, this isn't just a price point—it's a promise," Kapoor said, adding that it ensures good food is both affordable and accessible, especially for younger customers. Swiggy founder and CEO Sriharsha Majety has stated that affordability, rather than higher spending per order, will drive the next phase of food delivery growth. Swiggy previously experimented with a standalone "Swiggy Daily" app in 2019, which was discontinued, but the company is now relaunching "Daily" as an integrated service within its main app, likely priced under 200 rupees, to directly compete with Zomato's offerings in Gurugram.[m+9]
Zomato's Focus on Homely and Integrated Options
Zomato has taken a more integrated approach, focusing on its existing platform infrastructure rather than launching multiple standalone apps. Asignificant part of its budget strategy is "Zomato Everyday," a service launched in February 2023. "Zomato Everyday" delivers fresh, home-style meals crafted by real home chefs, with prices starting from just 89 rupees. This service was initially piloted in select areas of Gurugram. Deepinder Goyal, Zomato's founder and CEO, introduced the service, stating it aims to bring customers closer to home by serving meals that evoke a sense of comfort. He emphasized that food partners collaborate with home chefs who design recipes with care, using fine ingredients to ensure delicious and high-quality dishes.[whalesbook+13]
While Zomato has no immediate plans for a separate value-focused app, it is expanding its range of value meals and offering targeted discounts within its main platform. The company also lowered the free-delivery threshold for its Zomato Gold subscription to 99 rupees from 199 rupees, making affordable options more accessible. Zomato aims to utilize its existing platform to manage demand with targeted discounts and platform fees across different neighborhoods. The company continues to explore new concepts like its 'Bistro' format but remains cautious about fragmenting its user base with too many separate applications.[food+6]
The Broader Market and Future Outlook
The intensified competition in the sub-250 rupee meal segment highlights a critical shift in India's food delivery landscape. Platforms are now seeking to convert occasional users into daily customers, especially among younger office-goers and students. Industry executives believe that for daily ordering to become common, the total bill, including delivery charges, must remain competitive with local dining alternatives. Satish Meena, founder of Datum Intelligence, a consumer and retail research firm, noted that the goal is not just the first order, but to make people rely on these companies for regular office lunches.[whalesbook+5]
Other players are also exploring different models. Rapido-backed Ownly, for instance, is experimenting with a zero-commission approach, initially waiving commissions for restaurants and removing delivery and platform fees. Cloud kitchen operator Rebel Foods focuses on catering to different dining occasions rather than solely relying on lower prices. Curefoods also employs a multi-brand strategy through labels like EatFit and Sharief Bhai Biryani, targeting various budgets.[m+5]
The online food delivery market in India is projected to grow substantially, driven by increased convenience, smartphone usage, and evolving consumer demand for quick, accessible meals. As Swiggy and Zomato continue to innovate and refine their strategies in the budget meal sector, the battle for everyday orders is set to redefine how millions of Indians eat daily.[m+1]
