Swiggy Launches Cheaper Version Of ‘Swiggy One’ To Take On Zomato

Food delivery giant Swiggy has launched Swiggy One Lite, a cheaper version of its subscription plan Swiggy One. Swiggy One Lite offers benefits, including free deliveries, exclusive offers, and discounts at a launch price of INR 99 for three months.

The subscription will allow users to have 10 free food deliveries on orders above INR 149, 10 free Instamart deliveries on orders above INR 199, additional discounts on all restaurants and a 10% discount on Swiggy’s pick-and-drop service Genie.

The new segment within the larger Swiggy One programme would allow the foodtech giant to better monetise its platform at a time when Swiggy is lagging behind Zomato in the Indian food delivery market. 

Regarding offerings under Swiggy One, the company offers unlimited free deliveries of food and groceries and additional discounts on its restaurant partners. The plan costs INR 249 to INR 749 for three months for most users, while the company also offers it at a lower rate to a few customers.

Meanwhile, Zomato’s subscription plan, Zomato Gold, offers unlimited food deliveries, priority processing of Gold orders and additional discounts at about INR 199-299 for three months. However, Zomato Gold benefits don’t extend to grocery delivery vertical Blinkit. 

Commenting on the launch of the cheaper version of the plan, Anurag Panganamamula, vice president of revenue and growth at Swiggy, said, “After a successful B2B launch with leading players, we’re excited to introduce Swiggy One Lite on the Swiggy platform as a pocket-friendly alternative designed to bring value to our customers, especially those yet to experience the unparalleled benefits of the Swiggy One program.”

According to Panganamamula, 9 out of 10 members of Swiggy One use two or more services. Swiggy is bringing One Lite to consumers on its platform after partnerships with telecom and banking companies. According to the foodtech giant, brands have been bundling the Swiggy One Lite membership with their products. 

The foodtech giant was recently intensely scrutinised after some users alleged it was overcharging on orders. 

However, Swiggy said no customer was overcharged and attributed the issue to a technical bug. “We confirm no customers have been overcharged and they have paid the correct amount. This was due to a tech bug, which we have fixed. We continue to deliver thousands of orders every minute to our customers,” a Swiggy spokesperson said. 

Swiggy’s loss jumped to $545 Mn in 2022 from $300 Mn in 2021, according to the annual report of Prosus, one of the biggest investors in the unicorn. Based on Prosus’ numbers, Swiggy’s overall revenue grew to around $900 Mn during the year from $600 Mn in the previous year.

Meanwhile, Swiggy’s filings for FY22 showed its net loss jumping to INR 3,628.9 Cr, while revenue stood at INR 5,704.9 Cr.