Online food delivery service, Swiggy, is planning to venture into groceries and medicines delivery. They plan to start with medicines before moving to grocery delivery. "While several categories have been discussed, they may start with medicines and then move on to groceries," said a source familiar with the development. This strategy is likely to be adopted to boost the Bengaluru-based company's volume and cost optimisation.
The company aims to optimise costs and use its more than 30,000 employee workforce in a more productive manner, especially between 2pm-6pm, as mentioned in a report by The Economic Times.
The new service will be named 'Dash'. Swiggy is likely to commence pilot operations for some of the new categories in the coming months, a source told the newspaper.
While Swiggy did not comment on their plans, a spokesperson said to the newspaper, "At Swiggy, we're 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 that currently leads the online food delivery business in India is also in talks with DST Global and hedge fund Coatue Management to raise over USD 200 million. Once that deal follows through, Swiggy's valuation would cross USD 1 billion.
The report suggests that Swiggy's plans to diversify comes as Chinese investors including Meituan-Dianping, Didi Chuxing and Alibaba that backs Swiggy, Ola and Zomato are looking to recreate China's on-demand delivery scenario in India and push up volumes.
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today