India food delivery sector expected to grow in 2026

India’s food delivery sector is expected to continue growing in 2026, driven by customer experience, speed, and value consciousness, according to Swiggy and magicpin.

Both platforms highlighted the importance of including a wide range of merchants and focusing on value-conscious users, with magicpin onboarding local restaurants and national chains to make food delivery more accessible.

Swiggy’s Food Marketplace CEO Rohit Kapoor noted a shift in consumer needs toward faster, more reliable, and balanced delivery options.

A report by National Council of Applied Economic Research (NCAER) and Prosus estimated the sector generated 1.2 lakh crore rupee (US$13.4 billion) in gross output in 2023 to 2024, while direct employment rose to 1.37 million, up from 1.08 million in 2021 to 2022.

🔗 Source: Press Trust of India

🧠 Food for thought

Implications, context, and why it matters.

Quick commerce losses double despite revenue growth, raising questions about India’s delivery economics

Swiggy’s operating loss doubled in H1 as it ramped up quick commerce spending, according to Prosus 1. This came even as the broader food delivery sector generated Rs 1.2 lakh crore in gross output in 2023-24, per an NCAER–Prosus report, so revenue growth has not delivered profits.
Prosus posted 21% revenue growth and positive group adjusted EBIT of $179 million in FY2025 2. Its e-commerce arm made $443 million in adjusted EBIT 2, though country performance varies. India unit economics on margins, order frequency, delivery costs remain unclear, which keeps the fast delivery model in doubt as buyers chase speed plus low prices.
The sector added 290,000 direct jobs between 2021-22 and 2023-24, per the same report. Swiggy’s higher losses hint that labor and infrastructure costs are rising faster than efficiency gains. Faster delivery raises fleet density needs and operational complexity.

Battery swapping networks present an entry point for infrastructure investors and EV financiers

Zomato teamed with Battery Smart to give delivery partners access to 800+ swap stations across 30+ cities 3. Startups, Indian Oil Corp., and Reliance Industries are also building networks 4. Quick commerce’s Electric Vehicle (EV) shift is fueling demand for these swaps 5.
Investors and operators outside food delivery can target gaps in battery financing, charging options in tier-2 cities, interoperability across networks. Fleets need uptime, so turnkey EV leasing with embedded swapping access could work.
OEMs supplying electric two-wheelers to delivery fleets can benefit as platforms scale EV adoption to meet sustainability targets. Companies with fleet software that optimizes swap timing can win share.