Swiggy Bets High on Bolt to Steer its Growth and Market Share
Swiggy, the Bengaluru-based food delivery company is counting high on its 10-minute food delivery service Bolt to steer its growth and market share as it contributes the most revenue and profitability to its overall financials. This service aims to cater the customers who expect faster deliveries, similar to the other quick-commerce models. The decision comes at the time when its rival, Zomato, has shut down its similar service Quick, while it doubles down on Bistro – the rapid food delivery brand being built for Blinkit.
Swiggy is one of India's leading food delivery and quick-commerce platforms offering a wide range of services, including restaurant food delivery, grocery delivery through Instamart, and even dining-out options. The company has been investing heavily in expanding its Instamart service, adding new dark stores and increasing its footprint across cities.
Swiggy has scaled Bolt to 500+ cities, collaborating with 45,000 restaurants, including fast-food giants like KFC, McDonald's, and Subway.
Swiggy reported that, in its March quarter earnings Bolt was contributing 12 percent to its overall food delivery volumes.
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However, increased spending on quick commerce has resulted in increased Swiggy's net losses. Despite its adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margins improving to 2.9 percent,it incurred a net loss of Rs. 1,081 crorein the fourth quarter, nearly doubling from the previous year. However, its revenue grew by 45 percent to Rs. 4,410 crore, driven by strong growth in food delivery and quick commerce.