By Elton Gomes
In an attempt to expand its operations across India, online food delivery startup Swiggy, which has gained immense popularity over the past couple of years, now aims to deliver medicines and groceries.
The company plans to start delivering medicines first, and then move on to delivering groceries. An anonymous individual, aware of the development, reportedly said that Swiggy had several other categories in mind, but, narrowed down its focus to delivering medicines and groceries.
While several categories have been discussed, they may start with medicines and then move on to groceries, the aforementioned person told the Economic Times.
Swiggy plans to name this new service “Dash”.
Here’s what happened
The Bengaluru-based startup is likely planning to improve its cost-optimisation, and plans to make use of its over 30,000-strong workforce, to deliver groceries and medicines between two and to six in the evening.
The company has yet to share any details about the new initiatives. However, Swiggy’s spokesperson told to the Economic Times: At Swiggy, were continuously experimenting with ways in which we can enrich the lives of our consumers and partners by making it more convenient and hassle-free.”
Swiggy’s attempts to diversify its operations comes on the heels of the company’s plans to raise over $200 million from hedge fund Coatue Management and DST Global. Swiggy’s valuation is estimated to cross the $1 billion mark, if it is successful in raising sufficient funds.
According to a report by NewsMinute, the food tech market has witnessed significant traction, and has successfully attracted interest from investors.
In early February, Swiggy’s rival Zomato managed to raise $150 million. In the same month, Swiggy raised $100 million, with the help of existing investor Naspers Ltd, as well as Meituan-Dianping, which offers food delivery services in China.
News Minute reported that Meituan-Dianping could be the primary force behind Swiggy’s diversification plans. In China, Meituan-Dianping offers services such as ordering meals, groceries, haircuts, salon services and more.
Why you should care
Since the business of delivering medicines is, at present, in the nascent stage in India, Swiggy might not have a lot of competition at present. The company also has strong financial backing, which may just help it corner the market.
With Japan-based SoftBank ready to pour in millions, Swiggy faces no dearth of finances, and this gives them the opportunity to take a chance, and see how Indian consumers respond to such a service.
Today, Indian consumers can get almost anything delivered right to their doorsteps, with just a few taps on a screen. Why not medicines? Perhaps, this is an area where Swiggy needs to build confidence and trust. People place a lot of trust in their doctors and neighbourhood chemist shops. But, can an online delivery app also foster similar levels of trust from the public? It remains to be seen whether the sheer convenience of home delivered medicines and groceries will help Swiggy win over more customers than it has already.