Swiggy To Soon Pilot ‘Middle-Mile’ Drone Delivery: CTO Dale Vaz

Foodtech major Swiggy is reportedly looking at drone deliveries to address logistical challenges involving transit of products from warehouses to mid-city fulfilment centres. 

Speaking to reporters at CTOtalk summit in Chennai, Swiggy’s chief technology officer (CTO) Dale Vaz said that the startup is already in touch with authorities and is working with drone manufacturers to execute the pilot.

“We are looking to partner with software companies and startups that offer drone-as-a-service. And, there are also regulations involved. The flight corridors have been approved by the government”, the EconomicTimes quoted Vaz as saying. 

According to the report, the soon-to-be-conducted pilot would likely see Swiggy operate drones for ‘middle-mile’ deliveries from warehouses located on the outskirts of Bengaluru or Gurugram. 

“Today, you move them (inventory) via trucks or tell the customer you are out of stock. Now, the ‘middle mile’ delivery, meaning the transit from the warehouse to the pod, can be optimised by drones,” Vaz said.

Essentially, ‘middle-mile’ deliveries are part of the supply chain which involve transit of goods from warehouses located slightly far away from the cities to mid-city distribution centres. 

In the past, Swiggy has conducted multiple pilots to operate drone deliveries targeted largely at consumers, but not middle-mile delivery. 

Vaz reportedly told media personnel that customer-directed drone deliveries could involve hazards of ‘misuse, fraud, and safety constraints’ while the middle-mile opportunity is insulated from such challenges.

The pilot is largely aimed at increasing operational efficiency and optimising issues related to the movement of products. It is part of Swiggy’s multiple side projects whereby it tinkers with different technologies to see if they can be commercialised or not. 

Vaz also took potshots at the 10-minute delivery employed by foodtech as well as quick-commerce startups across the country. Noting that Swiggy has ‘decidedly’ stayed away from mandating partners to deliver under 10 minutes, he said, “Frankly, at Swiggy, we’ve never played that segment…And, I don’t know if there’s a real customer need where they say, ‘I need my tomatoes in nine minutes’.”

Delivery Startups’ Tryst With Drones

In April this year, Swiggy shortlisted four drone startups to pilot its grocery delivery project in Bengaluru and Delhi-NCR. Close on the heels of that, the startup entered into a partnership with drone manufacturer Garuda Aerospace to begin trials for deploying drones to deliver groceries in the two areas. 

The plan has been in the works for at least a year. In April 2021, the food-delivery giant approached the Ministry of Defence to seek permission for commencing trials for its ‘Beyond Visual Line of Sight’ (BVLOS) operations in India in collaboration with ANRA Technologies.

Not just Swiggy, quick commerce startup Dunzo also partnered with Telangana government last year to pilot vaccine delivery in the far flung areas of the state. Zypp Electric has also begun drone delivery of packages in five cities – Bangalore, Hyderabad, Mumbai, Pune, and Delhi-NCR. 

In a bid to spur such deliveries, the government has also tried to clear certain regulatory bottlenecks. In August this year, it informed the Rajya Sabha that private players are free to use drones for delivery provided they comply with Drone Rules, 2021. 

The Centre has also introduced a slew of reforms including amending Drones Rules and abolishing drone pilot licences. 

Besides, 126 industrial training institutes (ITIs) across 19 states have also been allowed to offer short-term courses on drone manufacturing, repairing and maintenance. 

Swiggy still continues to be one of the two dominant players in the Indian food delivery segment, A recent report pegged Swiggy as the world’s ninth biggest food delivery company in the world.

Swiggy, along with Zomato, controls 90-95% of the Indian food delivery market and has been one of the most sought after startups for Indian investors. In January this year, it closed a $700 Mn funding round led by US asset manager Invesco, turning into a decacorn at a valuation of $10.7 Bn.