Foodtech has become one of the most sought after segments in the Indian startup ecosystem and another established startup has decided to strike while the iron is hot. However, this time the story makes more sense.
Delhi based bus aggregating startup Shuttl has forayed into the segment by starting an additional service of providing meals to the customers.
The logic behind the move, as the company points out with data is that it already has a high frequency of usage as 30 per cent of its customers use the transport service more than 30 times a month, and on an average, a customer takes 22 rides in the same duration.
Enjoying this frequency, the company decided to take user loyalty to the next level by running a complimentary business of providing meals like breakfast and snacks.
It rather makes a lot of sense when we see that the target user case is employees who face the problem of not getting breakfast, not being able to pack or eat breakfast due to timings, or feeling hungry while stuck in traffic a significant number of times.
The service strengthens the business of the company and motivates the user to stick using Shuttl even more. The evidence supporting the same lies in the company’s statement that the F&B services on the first 50 set of buses is seeing a high user adoption.
Riding on this successful pilot, the company is planning to take the service to the entire fleet. It also plans on providing other services like daily essentials including bread, butter curd, eggs milk as well to the commuters, as per the ET coverage.
This is how the Amit Singh led company’s take on food tech and milk tech becomes a creative and relevant play. Instead of engaging in a mindless battle against the large food delivery players like Swiggy, Zomato, Uber Eats and copying their model, it decided to start a complimentary service that would add to consumer loyalty on its platform and in turn add to its business.
Currently, the company claims to have crossed 20 million cumulative rides this January and plans to reach a half a million daily target in the next couple of years. The Shuttl service is live in five cities including Delhi NCR, Kolkata, Hyderabad, Pune, Mumbai.
