Food Delivery Giants Eternal and Swiggy Target Dining Out and Live Events for Growth

Food delivery majors Eternal and Swiggy are strategically expanding their services into the rapidly growing dining-out and live events market. This pivot is driven by the slower, more predictable expansion of their core food delivery business and a significant increase in urban consumer spending on experiences. According to a Bernstein Research report, the dining-out market was valued at approximately $21 billion in FY24 and is projected to reach nearly $39 billion by FY30, with the premium segment expected to more than double. The live entertainment sector is also a key focus, projected to grow from $2.5 billion to $9 billion by FY30. Both companies aim to leverage their existing user base, which largely overlaps with the target demographic for these experiences. This expansion will require substantial investment to improve restaurant and event organizer partnerships, manage inventory, and create integrated customer journeys combining dining, transport, and entertainment. While profitability may not be immediate, the strategy aims to lift average order values, increase customer frequency, and build a broader presence in consumers' daily lives, transforming them from mere delivery services to comprehensive lifestyle platforms.

Impact: This move could significantly boost revenue streams for Eternal and Swiggy by tapping into higher-value consumer spending. It diversifies their business beyond the competitive and capital-intensive food delivery and quick commerce sectors. The expansion into dine-out and live events positions them as lifestyle platforms, potentially increasing user engagement and average order values. Success depends on substantial investment and strategic execution in partnerships and service integration. Rating: 8/10

Difficult terms: Food delivery majors: Large companies that specialize in delivering food from restaurants to customers. Dining-out market: The market for people eating meals at restaurants and other food establishments away from home. Live events market: The market for organized entertainment events like concerts, festivals, and shows. Food delivery: The service of transporting prepared food from a restaurant or eatery to a customer's location. Quick commerce: A business model focused on delivering goods, often groceries and everyday items, very rapidly, typically within minutes. Formalise inventory flows: To establish structured and systematic ways of managing and tracking products or services available for sale. Deepen partnerships: To strengthen and make relationships more robust and mutually beneficial, especially with businesses like restaurants and event organizers. Stitch together fuller journeys: To integrate various services and experiences into a seamless, end-to-end offering for the customer, such as combining dining, transport, and entertainment. Disposable incomes: The amount of money that households have available for spending and saving after income taxes have been accounted for. Curated dining experiences: Carefully selected and often unique dining options or restaurant experiences that are presented to customers. Higher-ticket end: Refers to the segment of the market involving premium or more expensive products or services. Fine dining: Restaurants offering high-quality food, exquisite service, and an elegant atmosphere, typically at a higher price point. Premium casual kitchens: Restaurants that offer a more upscale casual dining experience than typical casual restaurants, with higher quality food and ambiance. Concept-led restaurants: Restaurants designed around a specific theme, idea, or unique selling proposition, offering a distinct experience. Discovery: The process by which consumers find out about new restaurants, events, or services. Social feeds: Content streams on social media platforms where users see posts from friends, followed accounts, and suggested content. Search platforms: Websites or applications (like Google, Bing) that allow users to find information online. Friction: Obstacles or difficulties that make a process less smooth or efficient. Organised events market: The market for professionally managed and promoted events such as concerts, festivals, sports matches, and cultural performances. International tours: Performances or events held by artists or groups in multiple countries. Large-format music festivals: Major music events held over one or more days, featuring multiple artists and drawing large crowds. Comedy and cultural performances: Live entertainment events featuring stand-up comedy, theatrical plays, traditional arts, and other cultural expressions. Discretionary consumption: Spending on non-essential goods and services, chosen by the consumer based on their wants and preferences. Distribution advantage: Having a pre-existing network or platform that makes it easier to reach a large customer base compared to competitors. Standalone ticketing services: Companies that exclusively focus on selling tickets for events, without offering other related services. Utilities: Services that are essential or widely used, often by many people.