INDIA – Online delivery service, Swiggy is looking to expand its delivery services across the entire hyperlocal delivery market starting with a pilot program in Delhi-NCR, Bengaluru and Mumbai by November this year.

This will widen its delivery diversification strategy as well as help with further optimization of its 55,000-member strong fleet, according to two people familiar with the matter.

The move comes after Swiggy announced in April that it was diversifying into delivering medicine and grocery to boost volumes on its platform.

An earlier report by ET Retail indicated that the food delivery platform was on a mission to diversify its delivery operations beyond food into other categories to capture a larger share of the market.

“Swiggy is launching a concierge-like service and will enable buying and delivery of products from any store in the city including pharmacies, electronics, groceries and even flower and gift shops,” said one of the persons.

“It will also feature a customer-to-customer pick-up and drop service.”

With such a development, Swiggy is expecting to grow its business to about 15-20% of their revenues over the next two years as currently, its delivery volume stands at over 14 million orders per month in food deliveries.

According to a spokesperson of the firm, creating convenience for customers is at the core of their business by providing them a delightful experience.

Competitive advantage

A move to revamp its delivery service strengthens Swiggy’s position as a leader in the country’s online food delivery business, having numerous orders from around 35,000 restaurants listed on its platform in India.

Plans to diversify into a unified online delivery platform comes at the wake of numerous Chinese investor play in India, including Meituan-Dianping, Didi Chuxing and Alibaba which have backed Swiggy, Ola and Zomato, respectively.

It recently raised US$210 million in a round of funding led by DST Global, Naspers, Meituan-Dianping and Coatue Management, valuing the firm at US$1.3 billion.

The funding aimed at helping Swiggy ramp up its supply chain network, invest in core capabilities that enhance customer experience and expand to new markets.

Its rival, Zomato has on the other side has been building capabilities for its delivery with new platforms such as Zomato Treats and Piggy-Bank.

Such service being piloted by Swiggy is currently offered by Dunzo, an on-demand delivery service, backed by Google and Quikr as part of its Quikr Easy platform.