Foodtech unicorn Swiggy recently announced that it is planning to shut down its Mumbai-based on-demand premium food delivery service Scootsy.
The Bengaluru-based company had acquired Scootsy in 2018 but let it operate as an individual entity. The company now plans to merge the brand under the bigger umbrella of its main brand to establish its mark in the premium food-delivery market. Scootsy was bought by Swiggy for ₹50Cr. It delivered products from a curated list of restaurants such as Masque, Nara Thai, Royal China, Trattoria, gourmet food stores, and bakeries in Mumbai.
Swiggy had been trying to enter the premium “curated” food deliveries market since last month. The company had tied up with hotel groups–ITC Hotels, Marriott, Hyatt, KA Hospitality and the likes–to boost average order value on its platform, as it looks to profit more from high-ticket size orders.
As part of the recent development, Swiggy will also undertake the transitioning of Scootsy’s partners and delivery fleet onto the Swiggy platform. However, there is no confirmation whether the company will also absorb Scootsy’s backend employees.
“During the past few months, Swiggy has witnessed a surge in demand for curated food choices from premium brands. To expand our footprint to all discerning customers across Mumbai, we will be transitioning the services offered by Scootsy to Swiggy’s platforms in the near future. This will be the first major milestone in setting up the premium category for Swiggy,” said a Swiggy spokesperson.
Food delivery market in India has been suffering from the COVID-19 lockdowns on multiple fronts. Foodtech companies in India have now forayed into various delivery services like alcohol, grocery and essentials to keep business running and supporting the delivery workforce.
Companies like Zomato and Swiggy are now hopeful that business will get back on track as the government lifts lockdown and allows for certain relaxations. However, both have expressed their concerns that things will take a lot of time to get back to the pre-COVID times.
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