Exclusive: Swiggy is launching dunzo kind of logistics service Swiggy Go

Hyperlocal logistics space is set to see intense competition as Swiggy has been ramping up for a debut in the segment. According to three of Entrackr’s sources, the Naspers-backed company is launching Swiggy Go. This would be a service akin to dunzo - moving parcels from one point to another.

“The new vertical is slated to begin in Gurugram from mid-August. It has already hired over 30 key and mid-level employees to drive Swiggy Go,” said two of the three sources on condition of anonymity as they aren’t authorised to speak to the media.

Unlike dunzo that moves many things including food and groceries from one point to another, sources emphasised that the new vertical would solely focus on moving parcels like documents and perform several other errands.

Swiggy already has Swiggy Store to deliver groceries and other daily or momentary essentials. Swiggy Go will be launched in Bengaluru after completing the pilot in Gurugram.

Swiggy Go will be taking dunzo head-on with this new vertical. The multi-billion USD valued firm already impacting dunzo volume through Stores in Gurugram. As of now, Swiggy Store is only operational in Gurugram.

According to our sources, it has been processing close to 10,000 orders in the Millenium city. 

“Whenever Swiggy Go would kick-off operations, dunzo will witness intense competition on all fronts. So far, the Google-backed firm was the only consumer-facing hyperlocal logistics firm,” added sources. 

While Swiggy Go would initially focus on moving C2C (consumer to consumer) parcels, sources indicate that it would also foray into ferrying B2B consignments inside a particular city. Notably, dunzo recently introduced 'Checkout with Dunzo', a new B2B logistics service for retailers and small business owners.

Entrackr has sent queries to Swiggy for more insight. However, the company is yet to respond. We will update the post as and when it responds.

Interestingly, Swiggy has had several rounds of talks with dunzo for acquisition. However, they never progressed to an advanced stage. “If Swiggy is entering the hyperlocal logistics segment on its own, the probability of it acquiring dunzo is negligible,” added sources.

Many experts believe that Swiggy has already begun eating market share of dunzo with its Swiggy Store and it would further impact the scale of Kabeer Biswas-led company with Swiggy Go. Given the Swiggy’s sheer scale, financial muscle and reach, dunzo will certainly feel the heat.