Swiggy to co-create delivery brands through BrandWorks

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Published: February 13, 2020 12:15:41 AM

Vishal Bhatia, CEO, new supply at Swiggy, said the food delivery firm aims to co-create hundreds of such brands with multiple restaurant partners across the country by the end of 2020.

The move by Swiggy comes at a time when cloud kitchens and private labels offered by brands like Zomato have come under government scrutiny.

Swiggy on Wednesday announced the launch of BrandWorks, an initiative through which Swiggy collaborates with restaurant partners to co-create delivery brands. To put it in simpler terms — the restaurants will use their kitchen facilities to make the food items that will be packaged under the brand. The delivery-only brand will come at a cheaper price point with pruned portion sizes and will not be served to regular customers of the restaurant.
Swiggy currently has 100 such brands on its platform that were co-created with 95 restaurant partners across 13 cities, the Bengaluru-based firm said in a statement.

The strategy behind introduction of BrandWorks is to serve unmet consumer demands. Swiggy claims the model is asset-light and has the potential to generate revenue for restaurants since its launch with negligible capital investment. The business model also does not “cannibalise the restaurants’ existing dine-in business” while creating an additional revenue stream for them, the firm said.

Vishal Bhatia, CEO, new supply at Swiggy, said the food delivery firm aims to co-create hundreds of such brands with multiple restaurant partners across the country by the end of 2020. “BrandWorks helps restaurant partners expand their brand portfolio using existing kitchen space and culinary abilities. Additionally, the BrandWorks model can be scaled faster across markets to create more high-quality food choices for consumers due to its low-entry barriers.” Bhatia added.

While losses continue to mount for e-commerce firms, analysts believe venturing into newer business verticals is a ploy by companies to retain existing customers. Companies may have been able to on board the first set of 100 million customers but getting the next batch is no cakewalk and entails huge investments in marketing and infrastructure. It is now fight for wallet share at household level, they say.

The move by Swiggy comes at a time when cloud kitchens and private labels offered by brands like Zomato have come under government scrutiny. The government is soon expected to outline whether it violates FDI rules in e-commerce.

Newly-created brands such as House of Chow from Bercos, New Delhi, The Story of a Chinese Chef from Chennai, Baba Yega Burgers from Jaipur plan to expand the facility to newer outlets. BrandWorks partners with all kinds of restaurants and chooses restaurants only on their ability to create great culinary experiences, Swiggy said.

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