Presently Swiggy is getting busy with its hyper local delivery business through Supr, a startup that it acquired last year. Reportedly Swiggy has plans to invest $100 million spread over the next 2-3 years according to reports and Supr was primarily into delivering milk based on subscriptions and under Swiggy’s management the product offerings may be enlarged to add other daily needs and essentials too.
Furthermore Supr will be managed by the two original founders of the startup, Shreyas Nagdawane and Puneet Kumar, who have agreed to continue with their roles after selling their stakes to Swiggy. Accordingly Supr has already started functioning out of six cities, making over 100,000 deliveries per day. Maybe the company carried out a soft-launch of this service without much fanfare. Currently the cities being serviced by Supr include delhi-NCR, mumbai and Bengaluru.
Moreover the advantage Swiggy might gain with Supr is the network already created that goes beyond the metropolitan cities into the next tiers which can help it scale the business up rapidly. Further the emergence of large gated communities in cities comes handy to these companies since they save on delivery costs with a bunch of customers concentrated within one complex. Perhaps the overall profitability of this business will however depend largely on the per day/per household bill value, which is currently being quoted at around Rs 70 - Rs 90.