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Swiggy expands its food delivery service to Vizag and Indore

Swiggy has announced the expansion of its online ordering and food delivery services to Vizag, and Indore. With the launch of services in these two cities, Swiggy is now available across 15 cities in India, including – Ahmedabad, Bangalore, Chandigarh, Chennai, Coimbatore, Delhi, Gurgaon, Hyderabad, Jaipur, Kochi, Kolkata, Lucknow, Mumbai, Nagpur, Noida, and Pune. The platform has about 450 restaurants listed on its platform across these two cities.

In June , Swiggy raised Series G funding of $210 million led by existing investor Naspers and new investor DST Global, along with others. Swiggy said that it will use the fresh funds to ramp up its supply chain network, to expand to new markets, technology and branding. It had also added that it will double its technology headcount for operations, personalization and connected supply chain systems.

Swiggy’s rival in the sector is Zomato, which has its food order and delivery services in 21 cities in India. Zomato launched its online ordering and food delivery services in May 2015 and currently delivers over 13 Million orders a month. Zomato said food ordering brought in nearly 30% of the online aggregator’s revenue in FY18, with the share increasing from close to 18% in FY17. In March 2018, food delivery in India grew by 48% in terms of order volume over the previous month and revenue-wise by 55%. In terms of usage, the company said it had nearly 5.5 million monthly food orders in March 2018.

In its earnings call for Q1 FY19, Info Edge’s (Zomato’s parent company) CEO Hitesh Oberoi said that Zomato is “increasingly delivering more and more of using its own delivery system…” On competition with Swiggy, the company added that Zomato is expanding aggressively and that it not only expects the gap to narrow but also overtake it in the coming few months.

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