Covid-19 impact: Now order groceries from restaurants on Swiggy, Zomato – Business Standard

Restaurant News
Food delivery, zomato, delivery man, delivery service, food service

Ten days back, Jeet Shah, owner of Dailycacy, a south Mumbai-based quick service restaurant registered on Swiggy’s platform, got a call from its representative. The food tech platform had recently ventured into grocery delivery and the call was to check if Shah knew any grocer who would be willing to sell groceries through Swiggy. Dailycacy, which was doing a brisk business till a few months ago, had seen its daily orders drop 80 per cent due to the lockdown.

Sensing an opportunity, Shah offered to double up as a grocer as he had the space to stock and sell and manpower and other wherewithal. There has been no looking back for him since then. Starting with three products, Dailycacy has expanded to more than 100 products in the last one week and now sells everything — from groceries and vegetables to cheese and butter. In a short span, Shah’s restaurant has become the top seller in value and volume terms on Swiggy.

“We have sold goods weighing a cumulative 15 tonnes in the last 5 days,” says an exuberant Shah.Though the margins are very thin and leave him with only 2 per cent after paying off 8 per cent as commission to the food tech platform, it’s an additional revenue stream and has boosted staff morale amid a lull in the main business.

ALSO READ: RBI’s steps for NBFCs may not boost credit flow to broader economy: Moody’s
Encouraged by the response, Swiggy is reaching out to other restaurant partners and gauging their interest in doubling up as grocers. Its rival Zomato, which, too, has upped its focus on grocery delivery as the lockdown continues, is also in talks with its restaurant partners. Swiggy did not respond to an email seeking a response for this story.
A spokesperson for Zomato said a few of its restaurant partners did reach out to list themselves on the Zomato Market as they were busy restructuring their businesses due to the lockdown. “We follow the marketplace model and are happy to list any restaurant with an adequate supply of essential products separately for grocery delivery,” the spokesperson added.
The latest development comes at a time when when food delivery business has taken a hit with a large number of people not ordering food from outside and reports of delivery personnel testing positive for Covid-19, adding to the woes of restaurant food delivery platforms.
ALSO READ: No pension cut to central govt employees: FinMin refutes news of 20% cut
Zomato has a tab called Market, which works on a marketplace model, and lists nearby grocers, bakeries and others who are willing to stock and deliver groceries and daily food items.
Swiggy also follows a similar model, listing grocery stores and retailers as sellers of grocery under the “grocery” tab on the app. It has also revamped its ‘Swiggy Go’ into a Dunzo-like model, by launching a hyperlocal delivery service called ‘Genie’. This service picks up and drops off essential items and medicines from anywhere within the city at the customer’s doorstep.
The move to engage with the restaurant partners for the delivery of groceries has been prompted by the reluctance on part of some traditional kirana stores to join hands. “I don’t see any merit in it,” said the owner of a Mumbai-based large grocery store. “After paying them a commission I will only be left with 2 per cent. Why get into it?” he asked.
During the coronavirus pandemic, several Internet and gig economy based businesses have emerged during the lockdown, which has led to interesting partnerships. (see table)
According to research by consulting firm RedSeer last year, online food and grocery retail is expected to touch $10.5 billion by 2023, driven by an increased assortment of products and efforts like express delivery operations.
Recent partnerships

Uber recently launched a business facing vertical partnering with Bigbasket & Flipkart

ITC has partnered Jubilant FoodWorks.

Marico has partnered Swiggy and Zomato to introduce Saffola Store

Paytm has partnered with McDonald’s to deliver food to medical workers.

Under a new vertical called, plans to deliver grocery essentials.

Source: Thanks