Abstract

The Indian food delivery industry has witnessed explosive growth over the past decade, with platforms like Zomato and Swiggy leading the charge. However, beneath the surface of rising order volumes and aggressive market expansion lies a troubling reality these platforms continue to operate under significant financial strain, with recurring losses, gig worker unrest, and eroding trust from partner restaurants. This research paper critically examines whether the Indian food delivery business model is inherently flawed broken by design and whether its challenges stem not from executional gaps but from structural inefficiencies built into the model itself. Using a qualitative case study approach, supported by secondary data, financial analysis, and theoretical frameworks such as the Business Model Canvas and Porter’s Five Forces, the paper dissects the platform driven delivery model across dimensions of customer acquisition, unit economics, stakeholder relationships, and policy alignment. Comparative insights from global players like DoorDash (USA) and Meituan (China) provide context and contrast. The findings suggest that the Indian model’s overreliance on discount based growth, absence of viable unit economics, unsustainable gig labour practices, and weak regulatory frameworks contribute to a precarious ecosystem. The paper concludes with recommendations aimed at structural reengineering proposing fairer labour policies, strategic diversification, and regulatory interventions as essential to redesigning a sustainable, resilient food delivery industry in India.

Keywords: Food delivery, Platform, Gig worker, Discount, Business model