Swiggy eyes category larger than food delivery; to change Supr's structure
Food delivery firm Swiggy (Bundl
Technologies) said it has decided to change its daily grocery delivery service
Supr Daily’s organisational structure to a Business Unit (BU) within Bundl.
This will help Supr deal with with the unfair advantages that Swiggy has access to
and accelerate its journey.
Over the last 15 months, Swiggy CEO Sriharsha
Majety said it has made some exciting progress on its food delivery business.
“We’re now comfortably surpassing our pre-covid peak, while also being on the
path to overall profitability,” said Majety in a blog post.
While food delivery continues
to be the firm’s flagship category, Swiggy also made some great progress in
realising its larger vision of elevating the quality of life by delivering
unparalleled convenience.
“We’ve done this on the back of strong traction in the grocery
delivery business,” said Majety. “This business is 10x the size of the food services
industry; I strongly believe that with the right investments and focus, we have
the potential to build a category that is larger than our food delivery
business.”
Swiggy’s foray into grocery delivery started with the acquisition
of Supr Daily in 2018. Over the last three years, the business has grown by
leaps and bounds. Supr Daily currently serves about 500,000 customers on a
monthly basis and delivers around 200,000 daily orders across six cities. “The
category has immense potential and we’ve been thinking through the several
structures that best set it up for success in the long term,” said Majety.
With the organisational change, the support functions of human
resources, administration, legal, IT and finance from Supr will be integrated
into the relevant functions with Swiggy. It would immediately start tapping
into the resources and structures available at Swiggy. The company acquired
Supr Daily in 2018. Swiggy co-founder Phani Kishan will take over the reins as
the CEO of Supr Daily.
“Supr Daily will continue to have dedicated business teams to
ensure the necessary focus and nimbleness to achieve their goals,” said Majety.
"Moments of change are moments of contemplation and after much reflection,
the founding team of Supr Daily comprising Puneet (Kumar), Shreyas (Nagdawane)
and Rohit (Jain) have decided to pursue new interests outside of Swiggy. I
thank them for their contributions in helping Supr scale to where it is today
and for building an amazing team,” he said.
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