Swiggy is betting that affordability, rather than faster deliveries, will drive the next phase of growth in India’s food delivery market as new entrants intensify competition.In its Q1 FY27 shareholder letter, the company said affordability remains “the biggest lever” to bring the next 100 million users online, prompting it to expand its budget offerings, including the standalone Toing app and 99 Store. Toing, which has now expanded to 50 cities, is helping Swiggy reach new customers, with two out of every three users either joining the platform for the first time or returning after being inactive. The company added that restaurants on Toing are already generating more than half the order volumes they receive on the main Swiggy platform, while leveraging its existing logistics network without significant incremental fixed costs.Addressing investor concerns over rising competition, Swiggy Food Marketplace CEO Rohit Kapoor said the online food delivery market remains significantly underpenetrated, with only about one in 10 Indians having ever ordered food online and most users ordering infrequently.“The opportunity remains secular and multi-year in nature,” Kapoor said during the post-results earnings call, adding that any new competition is likely to emerge in the affordability segment rather than premium food delivery.Kapoor said Swiggy deliberately chose a marketplace-led model through Toing instead of operating micro kitchens, arguing that the latter requires different capabilities, is more capital intensive and has uncertain economics. Swiggy recently shut its micro-kitchen venture Snacc.He also questioned the sustainability of “zero commission” models being offered by some new entrants, saying platform economics ultimately have to be recovered from either restaurants, consumers or delivery partners. “Somebody has to pay for the cost of the platform,” Kapoor said, adding that zero-commission models are unlikely to remain viable over the medium term.Alongside Toing and 99 Store, Swiggy is expanding offerings such as Bolt, Eat Right, Desk Eats and Food on Train to target different consumer occasions while broadening food delivery adoption.Published on July 31, 2026