Food tech company, Swiggy, is expanding its business model beyond food delivery and quick commerce by venturing into the e-commerce space. The company recently launched a new vertical called Swiggy Maxx, which will compete with the likes of Flipkart, Amazon, JioMart, and TataNeu. Swiggy Maxx aims to offer a wide variety of products ranging from electronics, home and kitchen essentials, beauty and grooming products, gardening, and health and fitness, delivered in one hour. The company is testing the waters in select areas of Bengaluru and is offering free shipping for orders above INR 99, and discounts ranging from 30% to 60% on various products. The move is to address the gap in the convenience quotient for e-commerce shoppers, which typically takes a day or two to fulfill.
Swiggy is betting on distribution to win in the e-commerce game and is leveraging its dark store network further. The company plans to add more product categories soon, such as essential clothing, furnishing and decor, and others found on e-commerce platforms like Amazon and Flipkart. While quick commerce has been a convenience category, Swiggy sees a gap in the convenience quotient for e-commerce shoppers, and the delays in e-commerce deliveries in the past year has led the startup to disrupt the space.
The move into the e-commerce space is significant for Swiggy, as it is currently facing many operational challenges. It has a lot to tackle following its recent business integration of Dineout and the exit of key leaders from Instamart, as well as Swiggy executives. However, Swiggy’s new venture is not unprecedented, as Blinkit is also moving towards deliveries of electronics, home appliances, and other products through existing retailers.
Swiggy’s new business model aims to be the destination for a wide variety of home and family shopping needs, delivered in one hour. This move could be a solution to the unit economics problem of quick commerce, and the company’s spokesperson stated that Swiggy Maxx aims to fill the convenience gap in metros when it comes to e-commerce deliveries. For now, Swiggy’s move into the e-commerce space shows its determination to be a major player in India’s digital commerce space.
