Swiggy Shares Jump 5% On 10-Minute Food Delivery Expansion

Shares of Swiggy ended 5% higher at INR 495.35 apiece on the BSE today (December 2) after the foodtech major announced expansion of its 10-minute delivery service ‘Bolt’ to 400 cities across India.

In October, Swiggy rolled out Bolt to deliver quick-to-prepare dishes in select cities —  Delhi NCR, Bengaluru, Chennai, Hyderabad, Mumbai and Pune — in under 10 minutes. 

As part of the offering, Swiggy partnered with over 2,700 restaurants, including popular  global chains such as KFC, McDonald’s and Starbucks, to offer quick-to-prepare items to customers within a two kilometre radius.

According to the company, Bolt will now be expanded into Jaipur, Lucknow, Ahmedabad, Indore, Coimbatore and Kochi, besides Tier II and III cities such as Roorkie, Guntur, Warangal, Patna, Jagtial, Solan, Nashik and Shillong among others.

Swiggy’s Bolt offering is aimed at reducing waiting times for frequently ordered items like coffee, icecream, burgers and biryani.

“Bolt is changing the way customers are experiencing food. For the first time, people are getting food from their favourite restaurants to their doorstep, as fresh as possible. Idlis come warm and fluffy, ice creams stay frozen, and even fries are crispy right out of the package” Swiggy’s food marketplace division’s chief executive Rohit Kapoor said. 

This comes just days after Swiggy made its stock market debut, with its shares listing at a 8% premium over the IPO issue price. The company’s mega $1.35 Bn IPO was heavily oversubscribed and the fresh fundraise would allow it to support key growth initiatives.

Earlier it was reported that Swiggy is also piloting a high-priced concierge membership that offers subscribers purchase access to high-end experiences and events that are not available to the general public. 

In October, Swiggy also launched a new feature ‘international login’ for users living abroad to order food and groceries in India.

On the flip side, the foodtech major has come under the scanner of the Competition Commission of India (CCI) for allegedly prioritizing certain restaurants on its platform. The antitrust watchdog found both Swiggy and its rival Zomato to be in violation of India’s competition law.