India’s Food Delivery Market: Emerging Competitors to China
India’s food delivery market, while not as expansive as China’s, shows promising advancements. Zomato and Swiggy are achieving food delivery economics that align remarkably well with Meituan, China’s predominant player operating at a significantly larger scale. This development is intriguing as China’s food delivery sector is approximately 22 times bigger than India’s, paired with higher consumer income levels. Nevertheless, Zomato and Swiggy are narrowing the gap on crucial metrics vital for food delivery firms, notably profitability per order and average order value, as highlighted in a Bernstein report.
China’s food delivery market reached approximately $230 billion in fiscal year 2025, in contrast to India’s figure of over $10 billion in fiscal year 2026. Meituan’s food delivery gross transaction value (GTV) was roughly $164 billion yearly during the March 2026 quarter, making it about 29 times Zomato’s annualised gross order value (GOV) of $6 billion in the first quarter of fiscal year 2027. However, examining the situation at the order level reveals a different story.
Profitability Comparisons
At its peak profitability in the second quarter of 2024, Meituan achieved an operating profit of approximately $0.3 per order. In comparison, Zomato and Swiggy were not far behind, each generating around $0.2 in adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) per order in the first quarter of fiscal year 2027.
Average Order Value Insights
The trend in average order values is somewhat similar. Meituan’s average order value (AOV) reached about $7.2 at its peak profitability stage, while Zomato and Swiggy disclosed GOV per order of approximately $5.2 and $5.4, respectively. This illustrates how two Indian platforms, despite operating within a much smaller market and a significantly lower-income consumer base, are achieving comparable economic outcomes to China’s leading food delivery service.
Significant Market Growth
The overall figures underscore an impressive trajectory. Meituan recorded a food delivery operating profit of $4.9 billion in fiscal year 2024, while Zomato noted $0.2 billion in adjusted EBITDA for fiscal year 2026. Before competition escalated in 2025, Meituan maintained a commanding control over three-fourths of China’s food delivery order share.
Future Growth Potential
India still possesses ample room for growth in food delivery. As of fiscal year 2026, food delivery made up approximately 15% of the country’s food services market, while this figure was around 27% in China as of fiscal year 2025. Despite this, India’s food delivery market has surged from a mere $1.2 billion in fiscal year 2018 to over $10 billion in fiscal year 2026.
According to Bernstein, the current economics of India’s food delivery sector are buoyed by a relatively high-income consumer group, which enhances order values and profit margins. Moving forward, the journey may pose more challenges for Zomato, Swiggy, and other platforms as they strive to penetrate lower-income segments to broaden their customer base. This could potentially lower average order values and pressurise profit margins. However, it also highlights the greater opportunity that lies ahead: India’s food delivery market is still a small fraction of China’s scale, yet its leading platforms have already established unit economics that are nearing a remarkable similarity.
While the market may currently be 22 times smaller, the economics are telling a contrasting and encouraging narrative.