Food delivery company Swiggy is taking on Zomato’s B2B platform Hyperpure for kitchen supplies to restaurants and hotels with its new app Assure. Released on Google Play Store in September last year and updated in December, the app is a “B2B platform for kitchen supplies and a one-stop shop for the HoReCa (hotels, restaurants, and caterers) industry,” the app description read.
The app so far has over 100 downloads and was launched by Swiggy’s subsidiary Android Scootsy which also launched intra city logistic platform for driver partners LYNK Partner, B2B retail ordering app Tezz, and sales tool Lynk Pragati.
The latest initiative adds to the new offerings introduced by the company in recent months such as Bolt and Snacc (10-minute food delivery), Swiggy Scenes for restaurant event reservations, and invite-only premium membership programme One BLCK.
The new app for kitchen supplies is a strategic move by the company for its long-term growth and road to profitability. The B2B vertical would strengthen its food services ecosystem by creating a sticky, end-to-end value chain from sourcing ingredients to delivering food. This can also help the company strengthen its relationship with HoReCa players.
Moreover, by tapping into HoReCa procurement – which is a major recurring expense for restaurants and hotels — the B2B supply chain can help Swiggy potentially generate higher margins in comparison to low-margin food delivery business other than competing better with Zomato.
Zomato had launched its Hyperpure solution in 2018 and has grown to over 100 cities to deliver more than 4,000 products to over 40,000 restaurant partners. The app delivers groceries, fruits & vegetables, poultry, meats & seafood, gourmet foods, packaging, consumables, and kitchen equipment with next-day delivery.
The company had reported Rs 1,671 crore revenue for Hyperpure in Q3 this fiscal, growing by 95 per cent from Rs 859 crore in Q3 FY24 while adjusted EBITDA loss was reduced to Rs 19 crore from Rs 34 crore during the corresponding period.