Encouraged by the response, Swiggy
is reaching out to other restaurant partners and gauging their interest in doubling up as grocers. Swiggy did not respond to an email seeking for a response for this story.
Its rival Zomato, which, too, has upped its focus on grocery delivery as the lockdown
continues, is also in talks with its restaurant partners.
A spokesperson for Zomato
said a few of its restaurant partners did reach out to list themselves for Zomato
Market, as they look to restructure their businesses. “We follow the marketplace model and are happy to list any restaurant with an adequate supply of essential products separately for grocery delivery," the spokesperson said.
Given that people have been reluctant to order cooked food — which worsened due to a couple of cases of delivery personnel testing positive for Covid-19 — food delivery platforms have included grocery delivery as part of their services.
has a tab called ‘market’, which lists nearby mom-and-pop stores, bakeries, and others who are willing to stock and delivery grocery and daily food items.
Swiggy has a similar model of listing grocery stores and retailers as sellers of grocery under the ‘groceries’ tab on the app. It also revamped its ‘Swiggy Go’ in a Dunzo-like model, by launching a hyperlocal delivery service called ‘Genie’. This services picks up and drops of essential items and medicines from anywhere within the city.
The move to engage with restaurant partners for grocery delivery has been prompted by the reluctance on part of some traditional kirana stores to join hands. “I don’t see any merit in it,” said the owner of a Mumbai-based large grocery store. “After paying them a commission, I will only be left with 2 per cent. Why get into it?”
Given the onset of the pandemic, the demand of hyperlocal grocery several consumer internet and gig economy-based businesses have pivoted during the lockdown, which has led to interesting partnerships (see table).
According to research by consulting firm RedSeer last year, online food and grocery retail was expected to touch $10.5 billion by 2023, driven by an increased assortment of products and efforts like express delivery operations.