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Scootsy all set to merge with Swiggy’s main app

Swiggy is planning to overhaul Scootsy’s operations by merging it with its main app, according to a report published in Economic Times (ET). This means that henceforth Scootsy will no longer operate as a separate entity.

The development has been confirmed by Swiggy, according to ET. It further added that Scootsy’s customers will be redirected to the company’s main app.

The move comes on a day when India is bracing for unlock 1.0, which will re-open the restaurants across the country and this has already put online food delivery majors like Swiggy and Zomato on hyper alert. Both companies are expected to go overdrive in leveraging the unlocking period, since their revenues suffered massive erosion during the lockdown period.

Scootsy’s merger with Swiggy’s main app will help the latter in tapping the premium category customers. This is expected to help the Bengaluru headquartered company in improving its bottomline.

Swiggy had acquired the Mumbai based Scootsy in 2018 for approximately $50 Mn or 8 crore. This was the period when consolidation had already begun in the foodtech sector, since small online food delivery companies were finding it really tough to raise funds. Scootsy offers online food delivery services only in the city of Mumbai. The company had raised $3.6 Mn in 2017.

Zomato, on other hand, as a part to recalibrate its strategy in the wake of unlock 1.0 has decided to retreat from grocery business and focus on its core business of food delivery.  The company said that its newly launched grocery business will continue to operate as a peripheral or non-core business.

No announcement has come from Swiggy whether it plans to do the same for its newly launched grocery business as well. Nonetheless, online food delivery companies are expected to continue with their re-strategizing plan as they look to compensate for massive loss posted during the lockdown period.

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