Swiggy is testing corporate catering vertical in Bengaluru

Foodtech has turned out to be hyper-competitive segment as Swiggy, Zomato, UberEats, and foodpanda are trying to grab larger market share. Besides building dominance in the segment, they are also expanding into other verticals such as micro delivery and corporate catering.

After Zomato, Tencent-backed Swiggy is testing corporate catering vertical in Bengaluru. The company has been piloting Swiggy Cafe in a couple of corporate parks for about three months.

Currently, Swiggy Cafe is doing a few thousands of orders on a monthly basis. The feature allows employees to get rid of waiting time and intimate them to collect orders when they are ready to be picked.

The pilot comes at a time after Zomato announced the acquisition of caterers and restaurants aggregation platform TongueStun. The company works on the similar model of PapasTiffin and Hungerbox.

The acquisition is helping Zomato to scale its business in the corporate segment.

While corporate cafeteria segment is relatively low ticketsize than usual online ordering, it helps foodtech companies to create stickiness and engage customers more frequently.

After raising hundreds of millions, Zomato and Swiggy have been expanding into several verticals including farm to fork business, micro delivery, and corporate catering. Earlier this year, Zomato revealed its plan to deliver raw materials such as staples, fresh vegetables, and fruits, amongst others, to restaurant partners.

The company would also give certified tag of Zomato to partners who source agricultural produce from the platform.

Meanwhile, Swiggy is also preparing a service called Dash to deliver daily essentials such as milk and grocery. It also acquired Mumbai-based micro-delivery platform Suprdaily.

The development was first reported by ET.