City-based foodtech unicorn Swiggy plans to shut down its on-demand premium food delivery service Scootsy, which it acquired in 2018, to consolidate its operations in the premium food-delivery category.
Mumbai-based Scootsy was acquired in an all cash deal at a reported valuation of about ₹50 crore. Scootsy, which was allowed to operate as an independent app, after the acquisition provided food deliveries from a curated list of restaurants (such as Masque, Nara Thai, Royal China, Trattoria), gourmet food stores, and bakeries in Mumbai.
Over the last month, Swiggy has been focussing on premium ‘curated’ food deliveries for customers and has tied up with hotel groups–ITC Hotels, Marriott, Hyatt, KA Hospitality and the likes–to boost average order value on its platform, as it looks to profit more from high-ticket size orders.
Now, Swiggy plans to consolidate the premium ‘curated menus’ segment 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.
“During the past few months, Swiggy has witnessed a surge in demand for curated food choices from premium brands. To expand our footprint to all discerning customers across Mumbai, we will be transitioning the services offered by Scootsy to Swiggy’s platforms in the near future. This will be the first major milestone in setting up the premium category for Swiggy,” said a Swiggy spokesperson.
While the delivery fleet will be absorbed by Swiggy, it is still uncertain whether the foodtech unicorn will absorb Scootsy’s employees.
The covid-19 pandemic has severely hit the restaurant and hospitality industry. The National Restaurant Association of India, which has close to half a million restaurant members, in May, had said the industry was staring at large-scale shutdowns and massive job losses, with the imminent closure of many food and beverage establishments.
Gourmet restaurants, recently, have begun reluctantly tapping food delivery platforms like Swiggy, to ensure business continuity as the industry expects a shift in consumer behaviour towards dine-ins.
This article was first published on livemint.com