All-out War on Zomato and Swiggy: Rapido and BigBasket Enter Food Delivery

The business of Zomato and Swiggy is dominated by two segments: quick commerce and food delivery. Both industries are still in the growth phase, and these two players have already managed to eliminate most of their competition in the food delivery space.

However, a new player is now entering the scene, Rapido.

As for quick commerce, e-commerce giants were initially sceptical about its growth. But now that the model has proven itself, the competition is heating up.

There are four big names in this space:

• Zomato and Swiggy, which operate in both food delivery and quick commerce
• Zepto and BigBasket, which are focused on quick commerce

Let’s first start with Food delivery

Food delivery is a massive market, a duopoly largely dominated by Swiggy and Zomato. But that might be about to change, with Rapido entering the space.

Before we dive into what Rapido brings to the table, let’s first break down the different types of charges on Swiggy and Zomato:

• Platform Fees: This is a direct charge on consumers just for using the app. For example, Zomato collected ₹572 crore in platform fees in FY25. 
• Delivery Charges: These are based on distance and time. For example, in FY25, Zomato made ₹1,001 crore from delivery fees. Swiggy earned ₹884 crore from delivery charges in FY25.
• Surge Fees: A relatively new addition. Both Zomato and Swiggy have started charging extra during high-demand periods, adding another layer of cost to the final bill.

Entry of Rapido

Rapido is now entering the food delivery space, as per Reuters. But it’s not just another delivery app - they’re coming in with a very different playbook.

• No more commissions: While Swiggy and Zomato charge restaurants anywhere between 16% to 30%, Rapido is offering a flat fee model - ₹25 per order (for orders above ₹100).
• One price, everywhere: Restaurants have been asked to keep pricing the same on Rapido as it is in-store. No inflated menu tricks.
• Cheaper for customers, too: No platform fee. No packaging fee. Just a small delivery charge if your order is below ₹100. That’s it.
• Subscription coming later: Rapido plans to introduce a flat subscription fee for restaurants eventually, but no details on that yet.

Let’s see how this impacts your final bill:

Even though the meal costs ₹199, the actual amount you pay can be double, all because of platform markups, delivery, packaging, and hidden fees, and now to Big Basket.

10 Minute food delivery Space, Bigbasket entry

BigBasket plans to roll out its quick food delivery service across India by the end of FY26, according to a Reuters interview with co-founder Vipul Parekh.

• Taking on Blinkit, Zepto, and Swiggy Snacc: It’s entering a space already occupied by Blinkit (Bistro), Swiggy (Snacc), and Zepto (Zepto Cafe), all delivering snacks and coffee under 15 minutes.
• Dark store network to power the model: Plans to scale from 700 dark stores today to 1,000 -1,200 by the end of 2025. These small warehouses enable fast hyperlocal delivery.
• Pilot in Bengaluru: The service went live in one city a month ago in Bengaluru, now expanding to 40 stores by July-end.
• Early usage trend: With the Pilot, it was discovered that 5-10% of eligible BigBasket customers are already bundling food with grocery orders. This is expected to grow.
• Menu limited to in-house brands: Food will come from Tata-owned Starbucks and Qmin. No third-party restaurants involved for now.

Big promise, tough market.

If Rapido pulls this off, it could hit the current duopoly where it hurts most - margins and pricing perception. But there are some serious challenges ahead:

• Big Fleet: Swiggy and Zomato have built massive delivery fleets over the years - an advantage that Rapido can't match overnight. As of FY25, Swiggy has a delivery partner base of 5.4 lakh. Zomato isn’t far behind, with 4.44 lakh delivery partners as of FY25. Matching this kind of scale will require both time and serious capital.
• Restaurant Network: These platforms have spent years building relationships, loyalty, and backend integrations with restaurants. It’s not just about onboarding, it’s about trust and reliability. Swiggy has 2.5 lakh restaurant partners, while Zomato leads with 3.14 lakh as of FY25. That’s a wide network that doesn’t shift platforms easily.
• ONDC Tried: The government-backed ONDC tried to challenge the duopoly, but failed to gain real momentum. Low adoption, limited restaurant inventory, and patchy customer experience kept it from scaling. It’s a warning sign for any new entrant, including Rapido.
• Consumer Trust & Brand Recall: For many users, Zomato and Swiggy are default options. Breaking that habit isn’t just about price - it’s about trust, speed, and consistency. Rapido will need to do a lot more than just offer cheaper delivery.
• App Stickiness & Data Advantage: Zomato and Swiggy have built deep ecosystems. From Pro and One memberships to gamification and personalised offers, users stay locked in. Plus, years of user data, delivery heatmaps, and behavior tracking give them an unmatched optimisation edge.

So, the food delivery battle just got a lot more intense. Let’s see how this plays out. Now, onto the next big segment - quick commerce.

Now, Quick Commerce

The quick commerce space is largely dominated by four big players: Blinkit, Instamart, Zepto, and BigBasket. But now, a new heavyweight is entering the race.

Let’s look at where the current players stand:

• Swiggy Instamart: 1,021 dark stores as of FY25.
• Blinkit: 1301 dark store as of FY25.
• BigBasket: Currently operates 700 dark stores.
• Zepto: Has 700 dark stores as of FY24.

Now, here comes the big move:

Flipkart Minutes: Launched in August 2024, starting with Bengaluru, and has already expanded to Mumbai, Delhi, Lucknow, Kolkata, and Ahmedabad. Built on top of Flipkart’s grocery and e-commerce data stack. At Walmart’s annual investor meeting, CEO Kalyan Krishnamurthy announced plans to open 800 dark stores by the end of FY25.

Retail giants are waking up:

• Reliance has launched JioMart Express.
• D-Mart is testing quick delivery via D-Mart Ready. They already have a strong local inventory and existing reach.
• BigBasket, ahead of its IPO, plans to scale up aggressively, targeting 1,000-1,200 dark stores by end-2025.

What investors can take away?

• Growth Outlook & Opportunity: Eternal Ltd has seen growth in revenue with 69% CAGR over the last 3 years, while Swiggy has grown its revenue with 39% CAGR during the same period. This growth is phenomenal, and competition was inevitable.
• Competitive Intensity & Moats: Swiggy and Zomato’s deep fleets, restaurant networks, and data moats pose strong entry barriers. Existing players also have years of behavioural data on customers.
• Regulatory & Operational Risks: Changes in gig-worker regulations, local rules on dark stores, or city infrastructure challenges can inflate costs or slow delivery speeds. Investors need to monitor policy shifts closely.
• Capital Intensity & Cash Burn: Building fleets or setting up dark stores needs a lot of upfront investment. For a new player like Rapido, this means burning serious cash just to match the scale of Swiggy and Zomato.
• Diversification: Existing players are not just relying on food delivery anymore. For example, 19% of Zomato’s revenue now comes from distinct and Hyperpure (B2B supplies). 
• Expansion beyond Tier-2 cities: It can unlock new growth, but the key question is whether they can keep AOV high enough to offset higher logistics and fulfilment costs.

Conclusion

The fight in food delivery and quick commerce is getting tougher, with new players stepping in. But Swiggy and Zomato still have big advantages with their large fleets, strong networks, and years of data. Investors should watch if these strengths continue to hold as the market grows.