Swiggy has almost always preferred Gurugram over Bengaluru and other major metros when it comes to testing out new products. The company has been testing out two major products – Swiggy Stores and Swiggy Daily in the city at the moment.
Experiencing decent traction for its concierge-like service Swiggy Stores in the Millenium City, Swiggy is all set to launch operations in Bengaluru. According to three Entrackrsources, Swiggy Stores would be launched in the state capital by the first half of the next month.
“Operation team has already been in place and merchant boarding is underway for the past few weeks,” said sources including two retailers who had signed up for the launch. According to them, the company won’t charge any commission from partners in the beginning.
As of now, it doesn’t ask for commission from partners in Gurugram as well.
Swiggy Stores does not charge anything to users for delivery under a radius of 6km. The move would impact dunzo’s business in Bengaluru directly. “dunzo hasn’t faced any competition in its strongest market. However, it’s going to change with the launch of Swiggy Stores,” outlined sources.
To counter Swiggy Stores, dunzo is laying emphasis on grocery and vegetables. The Google-backed company has been running aggressive promotional campaigns across major cities.
Since the Naspers-backed firm churns the highest volume from Bengaluru, Swiggy Stores will not take much time to gain sizeable traction. It has been gaining quick grounds in Gurugram with about 8,000 orders a day. The order volume under this service is about one-fifth of Swiggy’s food delivery order volume.
Sources also emphasised that Swiggy Stores would also go live in Hyderabad by September. “The company has started hiring and on-boarding partners in the Cyber City as well,” mentioned sources.
While dunzo undoubtedly would feel the heat in Bengaluru after Swiggy Stores’ launch, the holistic competition for the Kabeer Biswas-led company will be intensified when Swiggy launches Swiggy Go. ‘Go’ will move parcels from one point to another in any city. Three weeks ago, Entrackr had exclusively reported about Swiggy Go.