StartupTalky

Tag: Food Delivery Business

  • Swiggy Launches ‘Toing’ App to Provide Affordable and Fast Meal Delivery Services

    To provide consumers with affordable meal options, listed foodtech giant Swiggy has launched a new food delivery app called “Toing”. The app delivers meals for less than INR 250 and is presently available in a few Pune locales. According to the Google Play Store app description, Swiggy’s “Toing” service offers you dependable delivery throughout your city, honest pricing, and reasonably priced meals.

    Since its August 30 release in the app marketplace, the app has received over 500 downloads, according to the company. The development was initially reported by Moneycontrol. Over the past few months, the company has increased its efforts to provide affordable meals.

    The Swiggy app’s “99 Store” feature was introduced in July, providing fast food alternatives priced between INR 49 and INR 149. In order to satisfy the demands of cost-conscious consumers and offer reasonably priced solutions to the frequent Gen-Z buyer, the feature was introduced.

    Swiggy’s New Business Strategy to Attract More Customers

    The company has been aggressively raising its platform fees for food delivery at the same time as it is focusing on offering cheaper meal deliveries. It raised its platform costs to INR 15 for each order in September. Earlier in July and August, the business had implemented comparable pricing increases.

    Following the recent modifications to the GST scheme, food delivery costs are anticipated to increase. Delivery rates for food and fast commerce (local) deliveries will henceforth be subject to an 18% tax. For Zomato, where delivery costs typically range from INR 11 to 12, the adjustment will add roughly INR 2 to every order. Given that Swiggy’s delivery fees average INR 14.5, the company may experience a bigger impact of INR 2.6 per order.

    Swiggy’s Expansion Beyond Food Delivery

    Swiggy is now launching a lot of new products, and they’re not just food delivery services. In June, the foodtech major introduced a concierge service for travel and lifestyle via a brand-new app named “Crew.” Crew is a customised concierge app made to help customers with a variety of routine and unique chores.

    Pyng, Swiggy’s professional services marketplace app, was also released earlier this year. Swiggy Genie, the company’s delivery service, has been paused while it aggressively tests out new offerings. Swiggy released its financial results for the first quarter of the fiscal year 2025–2026 (Q1 FY26) last week. As it kept making investments to grow its rapid commerce activities, the company’s deficit increased in the first quarter. In the June quarter, the company’s net loss increased by 96% to INR 1,197 Cr from INR 611 Cr in the same period last year.

    Quick
    Shots

    •Currently available in select Pune locations; over
    500 downloads since Aug 30 launch.

    •Promises honest pricing, dependable delivery, and
    budget-friendly meals.

    •Follows launch of Swiggy’s “99 Store” (meals priced
    INR 49–INR 149) to attract cost-conscious users.

    •Q1 FY26 results: net loss widened 96% YoY to INR
    1,197 Cr as company invests in quick commerce    .

  • Swiggy’s Food Delivery Business is not Concentrating on Expanding into New Cities

    The food delivery industry has reached a saturation point in terms of the number of cities; thus, foodtech giant Swiggy is concentrating on strengthening its position in the current locations rather than expanding geographically. Following the release of its financial results for the second quarter of FY25, the company emphasised during its earnings call that there is no longer any business case for growing into an additional 50–100 cities. According to the corporation, there isn’t a strong commercial rationale for expanding to another 50 or 100 locations; therefore, doing so would primarily be a selfish exercise.

    Swiggy is instead focusing on expansion in high-potential metropolitan areas with growing migrant populations and developing communities, such as the new Bengaluru and Delhi NCR neighbourhoods. Cities like Bengaluru and the National Capital Region are no longer confined to their central regions. According to Swiggy CEO Sriharsha Majety, the company’s expansion into neighbouring zones—which Swiggy refers to as Tier 1.5 locations—is growing more and more important as new customers in these areas look for affordability.

    Changing Business Strategies

    Affordability is still a major factor, the CEO continued, particularly for markets like regular corporate lunches, where maximising delivery speed by distance is essential. Core city rents are also rising. In the meantime, Swiggy is trying to satisfy the increasing demand from customers for more options for its rapid commerce vertical, Instamart. It is still difficult to strike a balance between this and delivery speed, though. Although consumers anticipate a wide selection of goods, Swiggy claims that its current business strategy can supply up to 20,000 SKUs in 10 minutes. According to Majety, the corporation would have to make a minor compromise by lengthening the delivery time if it wanted to increase the assortment beyond this range.

    Adding New Dark Stores for Business Expansion

    Rahul Bothra, the CFO of Swiggy, told a media outlet last month that the company’s new dark stores would essentially occupy an area that is two to three times larger than its existing dark stores. In addition to expanding the company’s SKU coverage, adding dark stores will provide a variety of delivery options; for example, Swiggy Instamart can deliver some items in 10 minutes and others in 20 minutes, Bothra stated. On December 4, Swiggy announced that its operating revenue had increased by 30% to INR 3,601.45 Cr, while its consolidated net loss had decreased by 4.78% year over year to INR 625.53 Cr. In the quarter ending in September 2024, Swiggy Instamart’s operating revenue increased 135.7% to INR 490 Cr from INR 208 Cr in the same time the previous year.

    Swiggy Expands “Bolt” 10-Minute Delivery to 400+ Locations
    Swiggy extends its “Bolt” 10-minute meal delivery service to over 400 locations, making quick and convenient dining accessible across India.
    StartupTalkyNitin Konde