Swiggy Rolling up its Sleeves as they Enter the Milk Industry
- Entering the milk delivery market by the acquisition of Supr Daily
- Investing $100m
- Providing delivery in 6 cities with 1 lakh orders per day currently
- Ready to roll the market
For the longest time, Swiggy has just been the conventional food delivery application. It is undoubtedly one of the most successful in the food delivery business, but now they feel the need to expand to newer areas, the dairy products! Although it hasn’t been officially declared, the unit is already taking 1 lac deliveries per day in six cities.
Along with food , it is now planning to extend their business by selling milk to their consumers as well. Not only milk, but also provides bread and eggs. Swiggy, acquired ‘Supr Daily’ last year. The founders of Supr Daily, Shreyas Nagdawane and Puneet Kumar are leading the business after the acquisition by Swiggy . Some people also mention that consumers tend to buy non-milk products more often after subscribing to milk delivery.
Most of these service providers start with milk subscriptions which is the easiest to enlist and then the customers slowly add other items as well. For Supr Daily , 70% of its gross sale is from milk while the rest comes from non-milk products.
Swiggy has a great competition in the market faced by Uber, Zomato, FoodPanda etc. Hence putting a step forward in in an altogether different sector is definitely a great move . It not only adds a USP to the company, but also ensures great turnovers due the uniqueness and the simplicity of the Idea.
As the famous entrepreneurs say ,” Instead of getting into existing markets, enter a unique market which might definitely ensure you a profit in the upcoming 10 years at least”. This exact method is adopted by Swiggy and hence they have invested a wholesome of $100m in this claim.
Its main aim is to drive a higher frequency of orders, leverage its growing logistics network as well as brand build on food delivery. Swiggy having invested so much in Supr Daily should have had a strategy to beat their competitors like Milkbasket, DailyNinja and a major player, BigBasket. The statistics already show how well the strategy should be, it has grown its monthly user base by 10 times to about 1.5 lac in the last six months!
Swiggy sure does know when and where to move its business to next. It is undoubtedly one the biggest online food delivery application but now had come to stage of being stagnant. Supr Daily was really a smart move as they are not only getting into a new sector with enormous opportunities due to the lack of number of competitors, but also they are now getting on a more personal level with the customers which will benefit the company largely.
"A ship is safe on the shore but that’s not what it is built for."
The same way Swiggy has jumped into a whole new sector which I believe, they will manage to conquer shortly!