Bengaluru: Online food delivery start-up Swiggy (Bundl Technologies Pvt. Ltd) on Tuesday launched Swiggy Access, a programme which allows its restaurant partners to set up kitchen spaces in neighbourhoods where they don’t currently operate.
As part of the initial launch, Swiggy has set up a 3,200 sq.ft “Access” kitchen in the Marathahalli suburb of Bengaluru. The space will be shared by two of its restaurant partners—Leon Grill and Keventers. Swiggy’s own private brands, including The Bowl Company, House of Dabbas and Punjabi Rasoi, will also share the kitchen space.
The company plans to set up more Swiggy Access kitchens in Bengaluru and other metro cities in the next six months. It has already short-listed close to 40 restaurant partners for the expansion. Restaurants operating under the Access programme will serve only their top signature dishes on the menu.
The programme is designed to cut food delivery time for customers since these kitchen spaces are “delivery-only” branches and do not have a dine-in option, the company said in a statement.
“We curate restaurants for Swiggy Access using multiple criterions including something we call the cuisine score and the quality of supply score. We calculate this on basis of the number of restaurants in an area and the variety of dishes available within the same area. We also depend on what users are searching for in a particular area in our app. We are also targeting areas where there is a very minimal amount of site traffic coming in,” Sriharsha Majety, chief executive officer of Swiggy, said at a press conference.
Restaurants can save up to 25% of their operational costs since Swiggy will not charge a rental or deposit from its restaurant partners for the Access kitchens, according to Majety. Restaurant partners will, however, incur a higher commission when they operate via Swiggy Access when compared to charges on the company’s normal marketplace model, he added.
“Over the years, Swiggy insights (customer feedback) have helped us understand that people from several parts of our cities long for a much better selection of food, including the favourite restaurants in their neighbourhood. With Swiggy Access, we are diversifying local palettes, bridging geographical gaps in supply and solving for variety, quality and convenience of food,” Majety said in the statement.
Swiggy has tied up with finance lender Indifi Technologies to provide working capital loans to its restaurant partners. Since its launch in October, Majety said that around 4,000 partners have approached Swiggy to apply for working capital loans. The company also raised $80 million from Naspers Ltd, Accel Partners, SAIF Partners and others in May.
Swiggy is pushing hard to compete better in the online food delivery space where its competitors include Zomato, UberEats, Foodpanda and Faasos.