Quick Commerce Is Eating Into Food Delivery Market

Rapid delivery firms, services like Zepto Cafe and Swiggy Snacc have started capturing share

- Suneera Tandon & Varuni Khosla

Eternal (Zomato) on Thursday said that a slowdown in its food ordering business could be attributed to an increased preference among consumers for ordering food products through quick commerce applications.

The food aggregator suggested that "competition from the rapid delivery of packaged food through quick commerce platforms might be leading to a drop in demand for food delivery from restaurants."

The company also pointed to a broader slowdown in consumer expenditures, which could potentially encourage more at-home dining rather than ordering in. To be sure, overall competition in quick commerce has accelerated over the last 12 months.

Apart from quick delivery platforms—which offer everything from frozen foods to vegetables and beverages—companies have also rolled out quick food delivery services such as Zepto Cafe and Swiggy Snacc, delivering items such as coffee, tea, garlic bread, toast and sandwiches. Zomato's Blinkit also offers Bistro—snacks and meals delivered in a few minutes.