As competition in the food delivery sector intensifies with new entrants, Swiggy believes it’s in a strong position with no near-term risks to its growth, the company said during its June quarter results.
Its comments come as new players like Rapido’s Ownly and Flipkart’s food delivery venture (via ONDC) get in on the action.
“We believe our competitive position in food delivery is durable with no near-term risks to the underlying growth trajectory. We have been agile to evaluate possible opportunities across pricing, formats, and even separate apps to open up the TAM (total addressable market) further while maintaining the economics of the core platform,” Swiggy said in its shareholders’ letter.
“The depth of our restaurant partner base and our tech and operational stack is fully built and scaled and we are well equipped to meet each need-state at a fraction of the cost a new player would incur,” it added.
Also Read: Instamart operating-level breakeven hinges on order volumes expanding 2.5x
To compete with Ownly, which focusses on consumers seeking affordable food delivery options, Swiggy launched a separate app, Toing, last September.
While Toing's app download numbers have been better than Ownly's as of June, a recent report by JP Morgan highlighted that Toing is not adding new supply but poaching price-sensitive customers with lower prices and no platform fees.
