Swiggy and Zomato face profitability challenges in India's booming food delivery market

Swiggy and Zomato dominate India's food delivery market, holding 55% and 42% market shares, respectively. Swiggy's recent IPO generated initial excitement but quickly declined due to concerns over profitability and cash flow, mirroring Zomato's earlier post-IPO struggles. The Indian food delivery market is projected to grow significantly, with a gross order value reaching 2 lakh crore by 2030. Both companies currently maintain a stable commission rate of 20%, but achieving sustained net profitability remains a challenge, particularly for Swiggy. In the emerging quick commerce sector, Zomato's Blinkit is outpacing Swiggy's Instamart in revenue growth and dark store expansion. Despite rapid growth, both companies face challenges in achieving profitability, with high operational costs and intense competition from new entrants.