News · Commerce & Consumer Brands

LPG shortage hits Zomato and Swiggy operations

By Startup Enthusiast · 12 March 2026

What they do

Zomato is India's largest food delivery app with over 3,00,000 restaurants across 800+ cities

A Gulf crisis and Strait of Hormuz blockade have caused an LPG shortage, forcing partner restaurants to halt operations

Shares of Zomato fell 5% intra-day; analysts warn prolonged disruption could impede operations within 48-72 hours

An LPG shortage across India, triggered by a Gulf meltdown and blockade of the Strait of Hormuz, has disrupted food delivery platforms.
Zomato and Swiggy face supply-chain issues as partner restaurants restrict deliveries or halt operations.
Restaurants in Delhi-NCR, Bengaluru, Mumbai, Pune, and Calcutta have paused operations; some may shut indefinitely.
Eternal Ltd (Zomato parent) shares fell ~5% intra-day to ₹213.06; Swiggy shares hit a 52-week low of ₹271.2.
The Centre asked restaurant associations for detailed operations info to determine proportionate LPG distribution.
The petroleum ministry directed refineries to boost LPG production and prioritise domestic use over commercial.
Food delivery platforms have no contingency plan for this crisis, according to the facts.

90% of India's LPG supply came from Qatar, Saudi Arabia, UAE, and Kuwait till Feb 2026.
The Strait of Hormuz blockade by Iran cuts off a large portion of India's energy supplies.
90% of ~5 lakh Indian restaurants depend on commercial cylinders with limited inventory buffers.
A prolonged shortage could cause operational stress for 25-30% of restaurants.

Zomato is India's #1 food delivery app, with over 3,00,000 restaurants in 800+ cities and 3 billion+ orders delivered.
The app offers features like Veg Mode, Healthy Collections, Schedule order, Plan a Party, Offers, Food on Train, Gourmet, and Gift Cards.
Zomato Gold provides free delivery within 7 km and up to 30% extra off at 20,000+ partner restaurants.
Zomato also operates blinkit (30,000+ products delivery), district (events, movies, dining), and hyperpure (supply chain for restaurants).

The Centre may implement proportionate LPG distribution based on restaurant operations data.
Refineries have been directed to increase LPG production and prioritise domestic use.