Swiggy ventures beyond restaurants with grocery delivery

Swiggy diversifies its offerings from food to groceries and essesntials.

Swiggy ventures beyond restaurants with grocery delivery

In early 2019, the food delivery giant Swiggy announced its venture into the hyperlocal delivery space with “Swiggy Stores”. With the launch of this feature Swiggy aimed at delivering essentials goods such as groceries to its customers. The accessibility was initially restricted only to Bangalore and Gurugram. However, under the current lockdown, as the F & B industry embraces the boom in the hyperlocal grocery delivery vertical, Swiggy has expanded the operations and services of Swiggy Stores to 125 cities across India. FMCG firms such as Dabur, PnG, and ITC, in an attempt to avoid disruptions in last-mile- delivery, have also partnered with Swiggy and other aggregators, to deliver directly to their consumers.

A new milieu

The grocery market has consistently seen a  year on year growth of 106 percent and is all set to reach $10.5 Billion by 2023. Swiggy’s strategic decision to delve into the hyperlocal delivery sector comes at a time that coincides with their recent $43 Million funding raised from Tencent, Korea Investment Partners, MACM India Growth Fund, and Ark Impact Investments, giving them just the edge they need over other players in this segment. Being a food delivery & logistics company, expanding their serviceable market by leveraging the strong existing network that they have, seems like a no-brainer. Coupled with the pandemic that has left thousands stranded in their homes, the timing for the expansion is quite apt. According to Swiggy COO, Vivek Sunder -

"While the grocery and essentials category has always been a part of our long-term strategy of delivering hyperlocal convenience, we have enabled faster ramp up for the benefit of our consumers,"

Swiggy Stores for Grocery Delivery
Source : Swiggy

To enable the delivery of grocery essentials through its app- Swiggy has revamped its Stores into a “Grocery” category- ensuring the supply of needful items at the customer's doorstep - promising delivery times as low as 2 hours. The Bangalore based food aggregator has partnered with major national brands like Marico, Vishal Mega Mart, Godrej, HUL and several other city-wide retailers to deliver essential goods. In addition to stores and marts selling food items and branded essentials, Swiggy’s new feature also lists fruit and vegetable sellers in the vicinity, at select locations.

As most online delivery companies struggle with bandwidth and extended delivery time owing to the surge in demand, Swiggy has seen this as an opportunity to optimize their strong fleet of on-ground drivers/delivery partners. Not only does this feature solve the woes of the consumer, but it also provides a supplementary source of revenue for retailers whilst creating employment opportunities for many.

How to avail Swiggy Grocery?

To reap the benefits of this new facility, users can simply tap on the ‘Grocery’ tab on the Swiggy app. This redirects to the page showing the available stores nearby. Customers can then select a store and start adding grocery items to their cart and can even opt for no-contact delivery.

Swiggy has added a grocery tab to its app

To ensure ease of operations for retailers selling through these aggregators, UrbanPiper has tied up with Swiggy to provide a unified platform for the management of online orders, for retailers.

How can UrbanPiper help?

UrbanPiper is a SAAS-based company that powers integrations with all major food aggregators directly into the Point of Sale (POS) that is being used by a brand. Under the current circumstances, there has been a surge in demand for groceries through online channels and aggregators, with consumers increasingly opting for no-contact delivery at their doorstep to avoid risking catching the virus. For the ‘kirana’s and brands that have delved into the grocery vertical, this inevitably implies having to handle a huge number of orders coming in from multiple applications. For the businesses, this news, albeit good, has risky consequences. If not handled efficiently, this could lead to missed orders, manual errors causing increased expenses, poor RHI( restaurant health index), and a multitude of other issues. UrbanPiper helps brands effectively manage orders coming in from various online channels through a single dashboard, provides instant order status updates, and supports real-time inventory-control, seamlessly, across all aggregators. To know more about how UrbanPiper helps with multi-channel online order management, visit www.urbanpiper.com.

In a sector dominated by giants like Flipkart, Amazon, Grofers, and Bigbasket- aggregators such as Swiggy, are relatively new players. Despite this, Swiggy has quite successfully disrupted the food biz and taken the essentials delivery services market by storm.