Swiggy to integrate premium food delivery service Scootsy within main app

Swiggy will integrate its premium food delivery service Scootsy with its main app 14 months after it acquired the Mumbai-based startup, a move that will help Swiggy augment its premium food delivery service pan India.

The integration process will be completed by June-end and customers of Scootsy will be redirected to the Swiggy app, effectively shutting the Scootsy app.

“During the past few months, Swiggy has witnessed a surge in demand for curated food choices from premium brands. Through our partnerships with ITC Hotels, Marriott, Hyatt, KA Hospitality and the likes, we intend to further elevate our premium selection and category experience for consumers on Swiggy,” a Swiggy spokesperson said while confirming the integration to Entrackr.

Economic Times had first reported the development.

Swiggy had acquired Scootsy in an all-cash deal estimated to be around Rs 50 crore. The five-year-old hyperlocal-delivery platform essentially delivers a wide variety of products like food, electronics, fashion apparel and accessories, toys and books. 

The majority of Sccotsy’s business comes from food delivery orders which includes some special features such as an option to pre-order a meal or gift by choosing a day and time slot.

Experts tracking the segment say that expanding the premium category for nationwide customers will up the ante of Swiggy and could fulfil the demands of customers who prefer hygiene and safety over discount and freebies.

For instance, the average order value on Scootsy is around Rs 1000, which is 2.5X more than Swiggy’s average value.

Due to the Covid-19 pandemic, food delivery companies have witnessed around 70% slump in their number of deliveries. To compensate, Swiggy is exploring new ways of ramping up its revenue like partnering with hotel chains, foraying into delivery of alcoholic beverages and now catering to premium customers.

Recently Swiggy had forged a partnership with ITC Hotels to provide dining options to customers in the comfort of their home. The Naspers-backed firm also started home delivery of alcoholic beverages in three states - Jharkhand, Odisha and West Bengal.