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Swiggy to focus on Cloud Kitchen for faster delivery and growth

Swiggy has decided to aggressively pursue its cloud kitchen business model to enable faster delivery services for their customers. India’s leading food delivery startup had launched cloud kitchen model under the new vertical ‘Swiggy Access’ last year only for Bengaluru restaurants.

Zomato’s rival now aims to bring onboard over 300 restaurants spread across different cities in the next 6-9 months itself. This aggressive strategy is in tune with Swiggy’s ambitious goal to generate 20-25% revenue from Swiggy Access alone in next 24 months.

Swiggy_cloud_kitchen

Swiggy to focus on Cloud Kitchen for Growth

Under Swiggy Access, the company will help restaurants to build kitchens in any remote part of the city where it has absolutely no reach. These kitchens will basically help restaurants to increase their customer base in a territory or market where they previously had no customers. In turn, this also helps in increasing Swiggy’s delivery business.

Swiggy will not charge any rent or deposit from the restaurant for constructing these remote kitchens.

Swiggy says that there is a huge supply deficit in India despite mushrooming of new restaurants across the country. Several parts of the city still don’t boasts restaurants or cuisines that customers are looking for and hence there is a need for such access kitchens in these remote parts.

Company will be trying Swiggy Access for inter-city delivery as well. For intercity, the company has joined hands with Bengaluru’s Vasudev Adiga’s, which will be launching operations in national capital Delhi through access model.

Vishal Bhatia, Swiggy’s Chief Executive of New Supply, said that Swiggy Access will prove to be a game changer once the company starts building could kitchens in tier 1 and tier 2 cities. These unexplored markets will certainly have positive impact on company’s overall order & revenue, Bhatia added.

 

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