Swiggy Go and Stores have helped the foodtech unicorn Swiggy to make the hyperlocal delivery market more competitive for existing players such as Google-funded and Bengaluru-based Dunzo and other smaller players such as Chennai’s Genie, Hyderabad-based Whizzy.
Foodtech platform Swiggy has further strengthened its hyperlocal delivery business beyond food by launching new service — Swiggy Go — an instant pick up and drop service to send packages in a city. Zomato’s arch-rival Swiggy had in February this year announced expansion beyond food delivery with its Swiggy Stores service for delivering daily items such as vegetables, kirana, paan, pet care, florists, baby care, meat, health supplement, and gourmet/organic items. The two moves have helped the foodtech unicorn to make the hyperlocal delivery market more competitive for existing players such as Google-funded and Bengaluru-based Dunzo and other smaller players such as Chennai’s Genie, Hyderabad-based Whizzy.
The Go service will be a part of the Swiggy app and would help users in picking up and dropping everyday items such as laundry, lunch boxes, documents delivery or even forgotten keys through its delivery partners that Swiggy claimed is India’s largest ‘active’ delivery fleet.
Swiggy has launched the Go service is Bengaluru currently and would expand to more than 300 cities, according to CEO Sriharsha Majety even as the company would be taking its Stores service to all the major metros beyond Bengaluru and Gurugram. The announcement was made in a company statement. Swiggy also announced the phased roll-out of Swiggy Stores for customers to order from every store in Bengaluru and Hyderabad. The company has tied up with over 300 merchants in Bengaluru and nearly 200 merchants in Hyderabad.
Swiggy had launched the service in Gurugram six months back and claimed to be operating at a “significant scale” and adding new stores every day along with “increasing the reach and revenue stream of its partners”. The company, however, didn’t reveal the figures for the same.
The development comes amid the ongoing tussle between the food aggregators and restaurant body NRAI to curb deep discounting practices that allegedly has been hurting businesses of restaurants. NRAI, last week had written a letter to four leading food tech platforms including Swiggy, Uber Eats, Foodpanda and Zomato regarding eight concerns around delivery business vertical that restaurants highlighted in their meeting with NRAI in various cities. The association had suggested a permanent log out from these aggregators in the absence of required changes.
“Nobody has the intent of killing the whole industry. They (food aggregators) have more riding on it than us. Restaurants existed even before Zomato and Swiggy but their existence is totally based on restaurants,” Anurag Katriar, Mumbai Chapter Head, NRAI had told Financial Express Online. However, later in the week in a meeting with NRAI, Swiggy had agreed to ‘reconvene’ on the points mentioned in the letter.
Swiggy had emerged as the top company in trust and customer satisfaction in a survey of foodtech companies done by research firm RedSeer Management Consulting in January this year. The foodtech startup had raised $1 billion in December last year taking its valuation to $3.3 billion ahead of around $2.2 billion valuation of Gurugram-based Zomato.