Analysis · Commerce & Consumer Brands

Swiggy CEO comments on Rapido's food entry

By Startup Enthusiast · 21 June 2025

What they do

Swiggy operates food delivery, Instamart quick commerce, and other services across India

CEO Sriharsha Majety said Swiggy remains agile as Rapido enters food delivery with low commissions

He expects quick commerce to reach $30-40 billion in 3-5 years with consolidation ahead

Swiggy CEO Sriharsha Majety commented on Rapido's food delivery entry at a Prosus investor event in London.
Swiggy owns about 15% stake in Rapido, and Prosus is a common investor in both companies.
Rapido finalised food delivery partnership costs and terms with restaurants as of June 9, 2025.
Rapido charges restaurants a fixed commission: Rs 25 on orders below Rs 400, Rs 50 on orders above Rs 400.
Rapido's commission range is 8-15% compared to Zomato/Swiggy's 16-30%.
Majety said Swiggy remains agile and paranoid, ready to respond swiftly to opportunities.
He noted that past food delivery entrants like Uber, Ola, Amazon, ONDC failed to get a home run.
Majety expects the quick commerce market size to be $30-40 billion in 3-5 years.

The top 3 quick commerce players (Blinkit, Zepto, Instamart) hold 85-90% market share, down from 90-95% 3-4 months ago (BofA report).
Other quick commerce players include BigBasket, Flipkart Minutes, Amazon Now, JioMart.
BofA report says JioMart is unlikely to become top 2 in quick commerce.
Instamart CEO Amitesh Jha said quick commerce will be the dominating online shopping mode in 5 years.
India quick commerce market estimated at Rs 64,000 crore in FY25, with CAGR 142% FY22-FY25 (CareEdge).

Swiggy is an on-demand convenience platform founded in 2014.
It operates food delivery, Instamart (quick commerce), Dineout, Scenes, and Swiggy One membership.
Swiggy Food collaborates with over 2.5 lakh restaurants across ~700 cities.
Swiggy Instamart operates in 120+ cities and expanded to 124 cities in FY25, nearly 5x YoY.
Instamart network grew to 1,021 stores by year-end FY25, including 498 new dark stores (44 megapods).
Swiggy has 5.4 lakh delivery partners and 7,431 total employees as of March 31, 2025.
Swiggy revenue from operations was Rs 15,227 crore in FY25, up 35%.
Swiggy net loss was Rs 3,117 crore in FY25 vs Rs 2,350 crore in FY24.

Swiggy expected to declare Q1FY26 results on July 31, 2025.
Swiggy shifting from rapid expansion to consolidation and leverage for Instamart.
Instamart seeing early profitability in several key markets (annual report).