In the last few years, the 10-minutes food delivery sector has seen an increasing interest from platforms as well as investors.
Food delivery major Swiggy on Monday announced that it is expanding its 10-minute food delivery service Bolt to over 400 cities in India. The service was initially launched in October this year in Hyderabad, Mumbai, Delhi, Pune, Chennai and Bangalore.
The platform, which recently got listed, said Bolt would now enter into tier-2 and 3 cities such as Roorkie, Guntur, Warangal, Patna Solan, Nashik, Shillong, among others.
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Swiggy’s shares responded positively to the announcement, closing 5.1% higher at Rs 495.5 apiece on BSE on Monday.
Different from its usual food delivery service, Bolt offers food items that require minimal to zero preparation time and covers restaurants within a 2-kilometre radius of customers.
The company said the food will be delivered from over 40,000 restaurants, including famous food chains like KFC, McDonald’s, Burger King, Baskin Robbins, Starbucks, Chaayos and EatFit.
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This may be the Bengaluru-headquartered company’s attempt to get back some of the market share in food delivery from rival Zomato. In a report last month, brokerage firm Motilal Oswal said that the Gurugram-based Zomato held a 58% share while Swiggy is at 42%.
In the announcement, Swiggy also said that the delivery partners are not informed of the distinction between Bolt and regular orders, and there is no incentive for fast delivery.
“The delivery radius for Bolt is limited to 2 kms as of now which also increases familiarity and enables faster delivery. Additionally, the speed of delivery is optimized by prioritizing delivery executives closest to the Bolt outlets,” it said.
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In the last few years, the 10-minutes food delivery sector has seen an increasing interest from platforms as well as investors.
Zepto’s food-delivery service Zepto Cafe, which was launched in April 2022, said that it is targeting a revenue run rate (ARR) of Rs 1,000 crore by 2026.
“As we expand into new cities and launch 100-plus new cafes every month, we are on track to achieve an ARR of Rs 1,000 crore by next fiscal year,” Zepto CEO Aadit Palicha recently said.
Bengaluru-based Swish, which also promises 10-minute food delivery, has raised $2 million venture capital firm Accel, with participation from Urban Company’s Abhiraj Bhal and Varun Khaitan and former Swiggy Instamart head Karthik Gurumurthy.
Zomato had piloted a 10-minute food delivery service Zomato Instant in 2022. However, it halted its operations in less than one year.
