Swiggy launches $1.20 meals to attract budget-friendly users

Swiggy has launched a new in-app section called the ’99 Store,’ which offers meals at a flat price of 99 rupees (US$1.20) with free delivery.

This feature targets price-sensitive users amid slower growth in India’s food delivery sector.

The service is currently available in 175 cities, including Delhi, Bengaluru, Kolkata, and Hyderabad.

It includes quick-preparation items such as rolls, biryani, noodles, and burgers from partner restaurants.

Deliveries are made through Swiggy’s ‘Eco Saver’ mode.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ Discounting cycles reflect shifting strategies in India’s food delivery battle

Swiggy’s new 99 Store represents a recurring pattern in India’s food delivery ecosystem, where platforms cycle between growth and profitability phases.

This price-focused initiative follows Swiggy’s earlier “Pocket Hero” program launched in December 2023, showing a consistent focus on affordability to drive order volumes during challenging economic periods 1.

The timing is strategic, as Swiggy reported a marginal decline in gross order value from Rs 7,436 crore to Rs 7,347 crore in the most recent quarter, suggesting the company is prioritizing order volume over average order value 2.

This approach differs from competitor Zomato, which reported a net profit of Rs 59 crore in Q3 FY25 while Swiggy continued to post losses, highlighting divergent strategies in the duopoly market 2.

The competitive dynamics show Zomato holding 55-58% market share versus Swiggy’s 42-45%, creating pressure for Swiggy to find alternative growth levers beyond premium positioning 3.

2️⃣ Value-focused initiatives reflect India’s economic reality and changing consumer behavior

Swiggy’s 99 Store launch directly responds to India’s inflationary environment, where consumers are increasingly price-sensitive about discretionary spending like food delivery.

The initiative leverages Swiggy’s “Eco Saver” delivery mode, demonstrating how the company is optimizing its logistics network—a core strength since its founding in 2014 when it began as a logistics-focused startup called Bundl Technologies 4.