Scootsy, Swiggy's premium food delivery service is shutting down
What's the story
As part of an effort to cut down costs and focus solely on growth points, Swiggy is shutting down Scootsy, its premium food delivery service in Mumbai. The company, according to a report by The Economic Times, is looking to end Scootsy's operations by the end of this month and integrate its resources with the main Swiggy app. Here is more about it.
Goal
Goal to build a premium restaurant base
The economic fallout stemming from COVID-19 has deeply affected the restaurant and dining industry. Most small and medium restaurants are shutting down, with customers aggressively looking for premium, more hygiene-focused restaurants to order food from. Now, by integrating with Scootsy, Swiggy is hoping to use the service's trusted, high-end restaurant base and set up its own dedicated category for upscale food delivery places.
Plan
Transition to be completed by June-end
According to the people familiar with the companies' plans, "By June-end, Swiggy will transition Scootsy's partners, fleet and nudge consumers to its app and shut Scootsy." The food-tech unicorn, which goes against the likes of Zomato, had acquired Scootsy in 2018 for Rs. 50 crore but kept it operational as an independent entity for premium food, bakery products' customers in Mumbai.
Confirmation
Swiggy's spokesperson confirmed the development
A Swiggy's spokesperson, when contacted, confirmed the plan to shut down Scootsy and transition its restaurants and resources to the main Swiggy app. "This will be the first major milestone in setting up the premium category for Swiggy," the company's spokesperson said, adding that the users of Scootsy will also be redirected to the Swiggy app.
Growth
Demand for premium delivery services expected to grow
Though Scootsy's operations were limited to Mumbai, Swiggy's push to a premium category is expected to be nation-wide, considering COVID-19 has surged the demand for home delivery of hygienic food from trusted, premium brands. The situation has forced many diners to open for delivery as well as prompted Swiggy to partner with ITC Hotels, Marriott, Hyatt, KA Hospitality to list them on its platform.