Forecast Period
|
2026-2030
|
Market Size (2024)
|
USD 31.77 Billion
|
CAGR (2025-2030)
|
28.17%
|
Fastest Growing Segment
|
Restaurant-based
|
Largest Market
|
North
|
Market Size (2030)
|
USD 140.85 Billion
|
Market Overview
India Online Food Ordering and Delivery
Market was valued at USD 31.77 Billion in 2024 and is
expected to reach USD 140.85 Billion by 2030 with a CAGR of 28.17%. India's
online food ordering and delivery market is rapidly evolving, driven by
urbanization, busy lifestyles, and widespread smartphone adoption. Consumers
increasingly prefer the convenience of ordering meals online, with platforms
like Swiggy, Zomato, and others offering diverse cuisine options and quick
delivery services. The rise of cloud kitchens, AI-based personalization, and
digital payment integration has further enhanced user experience. Growth is
also supported by expanding internet penetration in Tier II and Tier III cities.
Key Market Drivers
Rapid
Urbanization and Changing Lifestyles
Urbanization in India is accelerating, with more than
35% of the population now living in urban areas—a figure expected to rise
significantly in the coming years. In 2024, India's urban population stands at 461 million,
growing at 2.3% annually, with cities expected to contribute 75% of the
nation's income by 2031. This shift has resulted in profound lifestyle changes,
particularly among the working-class population and young professionals who
often lack the time or inclination to cook at home. The rise in nuclear
families, increased female workforce participation, and longer working hours
have driven demand for convenient and time-saving solutions, including online
food delivery. The fast-paced urban lifestyle has created a preference for
readymade meals, with consumers seeking easy access to diverse cuisines at the
tap of a screen. Moreover, urban populations are more exposed to global food
trends, which has amplified demand for variety and restaurant-grade food.
Online food platforms cater perfectly to these evolving preferences by offering
a wide array of choices—from regional dishes to international cuisines—right at
the consumer’s doorstep.
Smartphone
Penetration and Internet Connectivity
The exponential growth in smartphone usage and
affordable internet access has been one of the most transformative drivers of
the online food delivery market in India. India's ecommerce market, currently
valued at USD 70 billion, accounts for about 7% of the country's total retail
market. This presents a significant growth opportunity, as the online retail
sector is expected to expand rapidly in the coming years. With over 800
million internet users and a majority accessing services via smartphones,
mobile-first platforms have become the backbone of food delivery operations.
The availability of low-cost smartphones and competitive data plans offered by
telecom companies like Jio, Airtel, and Vodafone Idea has democratized internet
usage across urban and semi-urban areas. This digital revolution has enabled
even first-time internet users to place food orders through user-friendly apps.
Online food aggregators have capitalized on this trend by creating intuitive
platforms with features like real-time order tracking, digital wallets, rewards
programs, and AI-driven personalized suggestions. Voice-assisted search,
regional language support, and simplified payment gateways have further lowered
entry barriers for consumers across various income brackets. As digital
inclusion deepens in India, the online food ordering ecosystem continues to
broaden its reach across the country.
Expansion
of Food Aggregators and Cloud Kitchens
The aggressive expansion strategies of major food
aggregators such as Zomato, Swiggy, and Uber Eats (before its acquisition by
Zomato in 2020) have significantly propelled the growth of the online food
delivery market in India. These platforms have invested heavily in
infrastructure, logistics, and technology to scale their operations across
metros as well as Tier II and Tier III cities. Their partnerships with
restaurants, cafés, and independent food outlets have led to the digitization
of a traditionally offline sector. At the same time, the emergence of cloud
kitchens—delivery-only food businesses without dine-in facilities—has further
enhanced the efficiency and profitability of the food delivery model. Cloud
kitchens operate with lower overhead costs and can swiftly adapt to changing
food trends, making them ideal partners for food delivery platforms. They also
facilitate the launch of virtual brands targeting niche food segments, allowing
aggregators to expand their offerings and meet the increasing demand for
variety and affordability. This combination of aggregator-driven logistics and
cloud kitchen scalability is redefining the food supply chain in India.
Investment
Inflows and Technology Adoption
A substantial inflow of domestic and foreign
investment has fueled innovation and competition in India’s online food
delivery market. Venture capitalists and private equity firms have recognized
the sector's high-growth potential, leading to significant funding rounds for
key players like Swiggy and Zomato. These investments have been instrumental in
building scalable technology infrastructure, optimizing supply chain
management, and enhancing the consumer experience. Companies have deployed
artificial intelligence and machine learning to forecast demand, personalize
food recommendations, and reduce delivery times through route optimization.
Additionally, initiatives such as contactless delivery, real-time GPS tracking,
and digital payment integrations have become standard features, elevating
service standards across the board. Technology has also enabled better fleet
management and the adoption of electric vehicles for sustainable delivery
solutions. As companies continue to harness data analytics and automation,
operational efficiency and customer satisfaction are expected to rise further.
The backing from investors has not only strengthened market incumbents but also
encouraged the entry of new startups focused on niche areas like health foods,
regional cuisines, and subscription-based meal services.

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Key Market Challenges
Profitability
and High Operational Costs
Despite the rapid expansion and growing order volumes,
profitability remains a persistent challenge for food delivery companies in
India. High customer acquisition costs, aggressive discounting strategies, and
deep competition have eroded margins for major players like Zomato and Swiggy.
These platforms often rely on promotional offers, cashback, and free deliveries
to attract and retain users, but such tactics significantly increase their burn
rates. Additionally, maintaining a robust delivery infrastructure involves
substantial operational expenses, including rider salaries, fleet management,
fuel, insurance, and real-time tech support. In many Tier II and Tier III
cities, the average order value is often lower, making unit economics even more
difficult to sustain. The thin margins are further strained by revenue-sharing
models with restaurant partners and refund or cancellation liabilities. While
investment inflows have helped absorb short-term losses, long-term
profitability demands a shift from growth-centric strategies to sustainable
models—something many companies are still struggling to achieve.
Regulatory
and Compliance Pressures
The online food delivery sector in India is
increasingly coming under regulatory scrutiny, especially around issues such as
food safety, labor rights, and tax compliance. Government bodies like the Food
Safety and Standards Authority of India (FSSAI) have mandated stricter hygiene
standards for food businesses listed on aggregator platforms, which has
increased compliance costs. Delivery executives, often treated as gig workers
without formal employment benefits, are now central to discussions around fair
wages, insurance, and social security. State-level governments and labor
commissions have begun exploring frameworks to regulate gig work, which could
raise costs for platforms if mandated benefits become compulsory. Furthermore,
the Goods and Services Tax (GST) Council in India recently changed the tax
structure to levy GST directly on food delivery platforms instead of
restaurants, adding to administrative burdens and potential pricing issues.
Data privacy laws and digital transaction regulations are also evolving
rapidly, requiring constant legal adaptation. These regulatory complexities not
only increase overhead costs but also expose companies to legal risks and
reputational damage if compliance lapses occur.
Intense
Competition and Market Saturation
The Indian online food delivery market has become
highly competitive, with few dominant players fighting for market share in a
price-sensitive environment. Zomato and Swiggy lead the pack, but they face
ongoing pressure to innovate and differentiate in a market where customer
loyalty is fleeting. Users often switch between apps based on discounts,
delivery speed, or available restaurants, making it difficult to build
long-term relationships or predictable revenue streams. In urban markets,
customer expectations around delivery time, food quality, and service
responsiveness are extremely high, leaving little room for error. At the same
time, newer players—especially hyperlocal delivery services and specialized
cuisine-focused startups—are entering the scene, fragmenting the market
further. As competition intensifies, customer retention becomes increasingly
challenging and expensive, forcing companies to spend heavily on marketing,
personalization, and customer support. Moreover, as the metros near saturation,
expanding into Tier II and III cities presents its own hurdles, including lower
demand density, logistical inefficiencies, and inconsistent restaurant
availability. This combination of cutthroat competition and regional challenges
makes sustained growth and differentiation a complex task for players in the
sector.
Key Market Trends
Rise
of Cloud Kitchens and Virtual Brands
One of the most defining trends in India’s online food
delivery ecosystem is the rapid growth of cloud kitchens—delivery-only
restaurants that operate without physical dine-in spaces. These kitchens
optimize resources by focusing solely on online orders, significantly reducing
overhead costs such as rent, interior design, and staffing. Enabled by food
aggregators like Zomato and Swiggy, as well as independent players like Rebel
Foods (Faasos, Behrouz Biryani), cloud kitchens have become a scalable and profitable
model. They allow multiple brands to operate from a single kitchen space,
catering to different cuisines and consumer segments. This flexibility enables
businesses to adapt quickly to food trends and consumer preferences without the
risk and cost of traditional restaurant formats. Moreover, cloud kitchens
support hyperlocal demand and faster delivery times due to their strategic
location placements. The model has also facilitated the launch of virtual
brands—brands that exist only on delivery platforms—allowing entrepreneurs and
established chains alike to test new concepts with minimal investment. As urban
delivery demand increases and space constraints persist, the cloud kitchen
trend is expected to dominate India’s food delivery sector in the coming years.
Integration
of Artificial Intelligence and Data Analytics
Technology is becoming the backbone of innovation in
the Indian food delivery market, with artificial intelligence (AI) and data
analytics playing central roles in streamlining operations, personalizing
experiences, and improving decision-making. Leading food aggregators are now
leveraging AI to enhance demand forecasting, optimize delivery routes, and
personalize menu recommendations based on a customer’s ordering history,
location, and dietary preferences. These tools also help in dynamic pricing
strategies, inventory planning for partner restaurants, and real-time fraud detection.
On the backend, AI-driven bots and machine learning algorithms are used for
customer service, reducing reliance on human support while improving response
times. Predictive analytics enable companies to understand peak demand times,
optimize rider allocation, and minimize delivery delays. Additionally, AI is
powering innovations like smart voice search and chatbot ordering, making the
ordering experience more accessible for users across different age groups and
language preferences. As data grows richer and more granular, the potential for
hyper-personalized marketing and operational efficiency is expanding rapidly,
setting new standards for customer engagement and service delivery in India’s
food tech landscape.
Focus
on Sustainability and Eco-Friendly Operations
With increasing environmental awareness and rising
consumer expectations, sustainability is emerging as a key trend in India’s
food delivery sector. Consumers, especially younger demographics in urban
centers, are demanding eco-friendly practices from the brands they support. In
response, companies are taking steps to reduce their environmental impact
through various initiatives. For example, Swiggy and Zomato have begun to
integrate electric vehicles (EVs) into their delivery fleets to lower carbon
emissions. Several platforms have also launched zero plastic or eco-packaging
options, encouraging restaurant partners to shift from single-use plastics to
biodegradable or reusable materials. Moreover, companies are investing in
carbon-neutral logistics models and promoting “green” restaurant options that
prioritize organic ingredients and sustainable practices. Food waste reduction
is another focus area, with surplus food being redirected to charities or
composting facilities. These sustainability efforts not only align with
government policies on environmental conservation but also enhance brand
reputation and customer loyalty. As sustainability moves from being a niche
concern to a mainstream expectation, companies that embrace eco-friendly
operations are likely to gain a competitive edge.
Expansion
into Tier II and Tier III Cities
While metro cities like Delhi, Mumbai, Bengaluru, and
Hyderabad have long dominated the food delivery market, a significant recent
trend is the aggressive expansion into Tier II and Tier III cities. Improved
internet penetration, rising smartphone usage, and increasing disposable
incomes in smaller cities have opened up vast untapped markets. Zomato and
Swiggy have already made strategic moves by onboarding local restaurants,
regional food outlets, and cloud kitchens in cities like Indore, Jaipur, Lucknow,
and Coimbatore. This expansion is not only bringing greater convenience to
non-metro consumers but also promoting regional cuisines and supporting local
food entrepreneurs. Moreover, users in these cities are becoming more digitally
savvy and willing to try online food ordering for convenience, variety, and
quality. Companies are adapting their delivery models to suit regional
infrastructure constraints, pricing sensitivities, and consumer behavior.
Localization strategies, including language support, regional cuisine
promotion, and cash-on-delivery options, are crucial in these markets. As
competition in metro areas becomes saturated, sustained growth in Tier II and
III cities is expected to be a key growth engine for the food delivery industry
in India over the next decade.
Segmental Insights
Operation
Type Insights
The restaurant-based segment is emerging
as the fastest-growing in India's online food ordering and delivery market. As
consumers demand greater variety and restaurant-quality meals at home,
restaurant partnerships with food aggregators like Zomato, Swiggy, and Uber
Eats have intensified. Many restaurants, both established chains and local
eateries, have embraced digital platforms to expand their reach and streamline
delivery operations. This segment is fueled by increased consumer preference
for convenience, evolving dining habits, and the growing popularity of regional
and niche cuisines. Additionally, innovations such as cloud kitchens, which
allow restaurants to cater exclusively to online orders, further contribute to
this rapid growth. The restaurant-based segment is expected to continue
thriving, driven by technological advancements, wider internet accessibility,
and changing consumer lifestyles.
Platform Insights
Mobile applications have become the
dominating segment in India's online food ordering and delivery market,
revolutionizing how consumers interact with food delivery services. With the increasing
penetration of smartphones and affordable internet access, mobile apps like
Zomato, Swiggy, and Uber Eats offer an intuitive, user-friendly platform for
browsing menus, placing orders, and tracking deliveries in real-time. The
convenience and speed of mobile applications, coupled with personalized
features such as meal recommendations, in-app promotions, and loyalty rewards,
have significantly enhanced the consumer experience. Furthermore, mobile apps
integrate secure digital payment systems, making transactions seamless and
safe. As smartphone usage continues to rise, mobile applications are expected
to maintain their dominance, driving the growth of the online food delivery
sector in India.

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Regional Insights
North India was the dominant region in India's online
food ordering and delivery market, driven by major urban centers like Delhi,
Gurugram, Noida, and Chandigarh. These cities have a high concentration of
young, tech-savvy professionals and a growing middle-class population that
prioritizes convenience and time-saving solutions, making food delivery
services highly popular. North India’s well-developed infrastructure, coupled
with greater disposable incomes and widespread smartphone usage, further accelerates
the adoption of online food delivery. Additionally, the region’s cosmopolitan
food culture and a variety of dining options contribute to the growing demand.
The presence of leading food aggregators like Zomato and Swiggy, along with
strong internet penetration, continues to solidify North India’s position as
the market leader in the sector.
Recent Developments
- In 2025, Swiggy launched a new
standalone app, SNACC, offering 15-minute delivery of snacks, beverages, and
meals in select Bengaluru areas. Unlike Swiggy's Bolt service, which partners
with restaurants, SNACC operates from centralized hubs stocked with
ready-to-serve items, ensuring faster and more reliable service. This move
positions Swiggy in direct competition with Zepto Cafe and Blinkit Bistro in
the ultra-fast food delivery market.
- In 2025, Rebel Foods has introduced a
new 15-minute food delivery app, aiming to meet the growing demand for
ultra-fast meal services in India. The app focuses on delivering popular items
like snacks, beverages, and ready-to-eat meals from strategically located cloud
kitchens.
Key Market Players
- Jubilant FoodWorks
- Zomato Limited
- Box8
- Bundl Technologies Private Limited
(Swiggy)
- FoodVista India Private Limited
- Rebel Foods Private Limited (Faasos)
- Yum! Brands, Inc.
- Biryani by Kilo
- Eat.Fit
- Fresh Menu
By Operation Type
|
By Platform
|
By Payment
|
By Region
|
- Food Aggregators
- Restaurant-based
|
- Mobile Applications
- Websites
|
- Mobile Wallet
- Card Payment
- Cash on Delivery
- Net Banking
|
|
Report Scope:
In this report, the India Online Food Ordering and
Delivery Market has been segmented into the following categories, in addition
to the industry trends which have also been detailed below:
- India Online Food Ordering
and Delivery Market, By Operation Type:
o Food Aggregators
o Restaurant-based
- India Online Food Ordering
and Delivery Market, By Platform:
o Mobile Applications
o Websites
- India Online Food Ordering
and Delivery Market, By Payment:
o Mobile Wallet
o Card Payment
o Cash on Delivery
o Net Banking
- India Online Food Ordering
and Delivery Market, By Region:
o North
o South
o East
o West
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents
in the India Online Food Ordering and Delivery Market.
Available Customizations:
India Online Food Ordering and Delivery Market report
with the given market data, TechSci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
India Online Food Ordering and Delivery Market is
an upcoming report to be released soon. If you wish an early delivery of this
report or want to confirm the date of release, please contact us at [email protected]