Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

Swiggy and Zomato, together, account for over two third of the online food delivery market in India. However, as Amazon starts ramping up its operations after the encouraging response received during its trial run, the market equations are bound to change. Given to Amazon's market penetration style and aggressive approach to killing the competition, who will struggle to hold its ground the most?

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It’s pretty much evident that the food delivery space in India is all set to get riled up soon enough as one of the biggest global e-commerce giants Amazon has decided to finally take a dig at it.

In the month of February, it was reportedly found out that Jeff Bezos, CEO – Amazon.com, Inc. (NASDAQ:AMZN), partnered up with Narayana Murthy in order to start the pilot testing of the Amazon’s food delivery business in select parts of Bengaluru, India. Now, recently it was revealed that they have moved passed the testing phase and are slowly rolling out the service to other parts of India such as Delhi, Mumbai and Chennai as well. On the other hand, the existing dominating players, likes of Swiggy, Zomato, are caught into various challenges – operational, scalability and financial challenges – due to the nationwide lockdown caused by the outbreak of novel Coronavirus. While the situation is far from improvement anything soon, companies have started evaluating strategies to either keep themselves sustained somehow or make a dignified exit.

The fast-changing equations in the Indian food delivery market space, while being a very interesting development, provokes one to bring up a few important questions that need to be answered:

  • Will the food delivery market of India will finally become a two-horse race with Amazon knocking out a lesser capable competitor?
  • Presently dominated by Swiggy and Zomato, which one has a high probability of losing its market to Amazon?
  • Will “Amazon Food” delivery business meet a similar fate as Uber Eats in India?

Swiggy And Zomato: Back To Square One

The leading competitors who have acquired the majority market share in this space are – the Bengaluru-based Swiggy and Gurgaon-based Zomato. However, up until earlier this year, there existed 4 major players, the other ones being Uber Eats and Ola-owned Foodpanda.

 

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Abhradeep Ghoshhttps://dazeinfo.com/
Marketing professional in making with a passion for acquiring knowledge in the tech and internet domain to further advance my understanding of the booming start-up culture in India.

2 COMMENTS

  1. Any monopoly or a Duopoly like the ones mentioned in the article isn’t always in the best of consumer interests, but then we have the Network effect to thank for it (case in point being Facebook). However in the viewpoint of established restaurants losing their mainstay business in the times of the pandemic, a lot of them wont be happy to undercut and give their delivery businesses away to swiggy and zomato in the era of uncertainty. Much like the MNC pizza and burger establishments, a lot of big name restaurateurs reeling under low footfall have already started started catering with direct order delivery using their captive delivery network. This is a ripe opportunity for local app savvy entrepreneurs to tap into this market by creating aggregation apps, where they don’t even control the back-end delivery infrastructure.

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