Swiggy to shut down it’s independently working food delivery service-scootsy.

Bangalore-based food-tech unicorn, Swiggy plans to close its on-demand online food delivery service Scootsy, a Mumbai-based startup which it acquired in 2018, for an estimated value of Rs. 50 Crore, to expand its operations in the online food delivery segment.

Scootsy,  was permitted to function as an independent app, serving food from a curated list of brands (such as Masque, Nara Thai, Royal China, Trattoria),gourmet food stores, and  bakeries after the takeover in Mumbai.

Swiggy is one of the many big Indian brands that have been adversely affected by the Corona-virus pandemic.Food delivery business in India saw a 70% drop in food order volume, with just 25% of listed restaurants operational.

In the past month, Swiggy has concentrated on luxury ‘curated’ consumer food delivery and has been linking itself to premier hotel groups like ITC Hotels, Marriott, Hyatt, KA Hospitality and such similar brands—to raise its average order volume and size on its website as it aims to benefit further from high-ticket size orders.

Thus the major food startup is planning to fully merge Mumbai-based Scootsy, an already premier food delivery brand , on its own platform and will redirect Scootsy’s customers to the Swiggy app. With this it will also undertake the transitioning of Scootsy’s partners and delivery fleet onto the Swiggy platform.

“Swiggy has seen a increase in demand over the past few months for customized food choices from premium brands. In order to extend our reach to all discerning consumers across Mumbai, we will be transferring the services provided by Scootsy to Swiggy ‘s platforms in the near future. This will be the first big step in setting up the premium category for Swiggy,” said a Swiggy representative.

Recently, gourmet restaurants have slowly begun to tap food distribution services such as Swiggy to ensure continuity of business as the industry expects  changes in consumer behavior toward eateries.

Source: https://www.livemint.com/companies