“We will be merging our operations from 6 July, and Scootsy will no longer be functional post that,” an email communication sent to customers said. The move is in line with Swiggy’s overall push towards tapping premium brands and consumer base pan-India.
ET was the first to report the development on June 8.
The company further said that all Scootsy restaurants on Swiggy will be fulfilled by the same premium delivery fleet, and be eligible for long-distance deliveries up to 10 km radius.
The Covid-19 pandemic has forced many premium dine-in chains and hotels including ITC Hotels, Ritz-Carlton, The Table, Masque, Bombay Canteen, and JW Marriott among others to open up for food delivery.
The move to combine operations is expected to help Swiggy tap into Scootsy’s high-end customer and restaurant base and create a market for itself in the consumer’s mindshare for gravitating towards trusted brands which may be higher priced.
Swiggy, for instance, claims it has witnessed a surge in demand for curated food choices from premium brands. In a recent interaction with ET, ITC Hotels said the company’s home delivery offering with Swiggy has “exceeded expectations” in terms of consumer orders.
Swiggy had acquired Scootsy in 2018 for an estimated Rs 50 crore but continued to let it operate as an independent entity. The company which operates in Mumbai aggregates premium dining options catering to a niche, premium, high-ticket-size food delivery, as well as top-end bakeries, stores, and gift options.