2025 was not the brightest year for food delivery giants in India. Amid macroeconomic pressures and soft consumer spending, food delivery platforms saw tepid revenue growth. The industry also faced a slowdown in the growth of transacting consumers. Growth plateaued due to sluggish customer acquisition and the absence of a meaningful increase in order frequency from existing users.

To compensate, both Zomato and Swiggy raised platform fees, which offered little respite, raising concerns around the sustainability of food delivery models.

The year also witnessed the sector face a regulatory headwind emerging from a new tax regime. Delivery services provided through ecommerce platforms are now taxed at 18%. Platforms like Swiggy and Zomato are now required to pay 18% GST on delivery charges when the supplier, typically the delivery partner, is not GST registered.

Amid this, Bengaluru-based Rapido entered the food delivery space with the launch of Ownly, partnering with restaurants affiliated with the National Restaurant Association of India (NRAI). Rapido later expanded its ecosystem through a partnership with magicpin.

Meanwhile, newer players such as Swish emerged with 10-minute food delivery. Swiggy launched Snacc, while Zomato briefly experimented with ultra-fast food delivery before scaling back the offering and instead expanding its Bistro brand through quick commerce via Blinkit.

While 2025 may not have been a strong year in terms of headline growth, it stood out for experimentation and the entry of new players — the developments that could set the stage for a pivotal year ahead.

Looking ahead to 2026, food delivery platforms are expected to continue scaling revenues, but profitability is likely to remain under pressure due to rising delivery costs, limited pricing headroom with consumers, and the need to aggressively defend market share. What else is in store for India’s food delivery sector in 2026? Let’s explore…

Defending Urban Market Share

While India’s restaurant industry is targeting tier II and tier III cities for the next phase of growth, the reality for food delivery is expected to remain metro-first even in 2026, according to industry experts.

In 2026, analysts expect order volumes to expand in the high single digits, driven by urban cohorts where food delivery has become a daily utility rather than an occasional indulgence. For high-frequency metro users, monthly orders are already inching up from five to........

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