Ownly and magicpin are expanding in India's food delivery market, attracting restaurant partners seeking alternatives to dominant platforms. This push arrives alongside a Bengaluru restaurant boycott against Swiggy and Zomato, which has been deferred to August 31, 2026. These developments highlight the intensifying competition for market share against established players.
India’s food delivery sector is seeing a shift as new entrants challenge the dominance of established players Swiggy and Zomato. Platforms like magicpin and Ownly, a food delivery service under the Rapido umbrella, are increasing their presence in major cities. These platforms are gaining traction by offering different business models, often focusing on lower commission fees to attract restaurant partners who have expressed concerns over high costs on larger apps.
This growth in alternative platforms coincides with a period of friction between restaurant owners and major aggregators. In Bengaluru, a group of restaurants had planned a boycott of Swiggy and Zomato to protest issues such as high commissions, unauthorized discounting, and delayed refund processes. This planned action has been deferred to August 31, 2026, as negotiations regarding commercial terms and data transparency remain ongoing. The potential for such disagreements has opened a window for smaller platforms to market themselves as more restaurant-friendly options.
Market competition is expected to tighten further. Flipkart is also preparing to enter the space with a pilot launch in Bengaluru, reportedly targeting a 10% commission rate to gain an early foothold. For restaurants, these new entrants represent a way to diversify their delivery channels and reduce reliance on a single platform. Magicpin, for instance, has been scaling its operations, though it faces the financial challenge of operating in a sector that requires significant capital. In the last financial year ending in March 2024, magicpin reported a revenue of ₹879.6 crore but also a net loss of ₹107.3 crore.
Investors tracking the food delivery sector should note that Ownly, magicpin, and the incoming Flipkart food service are currently private companies. This means they are not directly tradeable on stock exchanges. However, the rise of these competitors is a key trend to watch for shareholders of listed companies like Zomato. Increased competition can lead to pressure on profit margins, as established players may need to spend more on incentives or lower their own commission rates to retain both restaurant partners and customers.
The industry is also navigating technical and operational hurdles. Beyond the ability to acquire customers, success will depend on the ability of these new platforms to manage complex logistics, ensure fast delivery times, and maintain the reliability that customers have come to expect. The next important update for the industry will be the outcome of the ongoing talks in Bengaluru and the market's response to the expanded presence of these alternative platforms.