Swiggy’s budget food delivery app Toing has expanded to 50 cities in less than 10 months since its launch in Pune, pulling ahead of rival Rapido’s Ownly in the emerging low-cost food delivery segment, according to people aware of the development.
The rapid rollout contrasts with Rapido’s strategy. Ownly, which triggered the budget food delivery battle when it launched in Bengaluru in August 2025, remains limited to the city despite originally targeting a presence in 10 cities by July 2026.
The differing expansion strategies underscore how food delivery companies are experimenting with new models to unlock demand in a market where online ordering remains underpenetrated. Analysts, however, say it is still too early to determine whether lower-priced delivery can become a sustainable business.
Differing Pricing Models
Rapido entered the segment with a zero-commission model aimed at reducing costs for both restaurants and consumers. It waived commissions for restaurant partners, charged no platform fee and initially removed its flat Rs 25 delivery fee, positioning Ownly as a lower-cost alternative to the conventional marketplace model.
Swiggy responded with Toing by eliminating platform fees and reducing delivery charges while leveraging its existing restaurant network instead of building a fresh supply base. Market leader Eternal chose a different route, lowering Zomato Gold’s free-delivery threshold to Rs 99 from Rs 199 and expanding meal options priced below Rs 250 within the main Zomato app rather than launching a separate budget platform.
On its May earnings call, Swiggy described Toing as a platform targeted at infrequent users under its “selection-speed-affordability” strategy, which helped its food delivery business deliver a lifetime-high adjusted Ebitda margin of 3.3%.
The company, however, did not disclose Toing’s order volumes, user base or average order value, saying the business was still at an early stage. Toing is housed under Swiggy’s Platform Innovations segment, which reported revenue of Rs 52 crore and an adjusted Ebitda loss of Rs 58 crore during the March quarter.
A recent JP Morgan report said Toing had materially outperformed Ownly over the previous three months, although it attributed much of the lead to higher marketing expenditure. The brokerage also cautioned that the app could end up cannibalising Swiggy’s core food delivery business instead of creating incremental demand.
Rapido’s Hyperlocal Focus
Rapido, meanwhile, has prioritised density over geographic expansion. The company now covers more than 150 pincodes across Bengaluru and is processing more than 10,000 orders a day, according to industry sources.
Its average order value is about Rs 220, compared with roughly Rs 435 on Zomato and around Rs 500 on Swiggy. Ownly continues to waive delivery and platform fees while charging restaurants zero commission, although the company is still burning more than Rs 110 on every order, the sources said.
Instead of expanding rapidly, Rapido has focused on adding restaurant supply in Bengaluru, targeting the nearly 70,000 eateries that are not listed on Swiggy or Zomato.
To accelerate onboarding, the company partnered with Magicpin for restaurant integrations while simultaneously building direct integrations with brands, people aware of the matter said. The partnership, however, has faced challenges. Fe had reported in May that KFC and McDonald’s disappeared from Ownly after its integration with Magicpin broke down.
Competition in the segment could intensify further. Flipkart is evaluating an entry into food delivery through either a standalone app or the government-backed ONDC network, with a Bengaluru pilot previously under consideration.
The opportunity remains substantial. Analysts estimate online food delivery still accounts for only about 13% of food consumption and reaches fewer than 10% who eat out. Consumers in India order food online three to five times a month, compared with eight to 10 times in the US.
For now, the affordable food delivery market has evolved into three distinct models: Rapido’s zero-commission approach, Swiggy’s standalone budget app and Eternal’s affordability push within Zomato. Whether any of them can deliver sustainable unit economics remains the key unanswered question.