Swiggy Snacc: Swiggy’s standalone app Snacc: Here’s all you need to know about it

Bengaluru-based Swiggy rolled out a standalone app labelled Snacc for 10-minute food delivery. Snacc will be Swiggy’s second rapid food delivery offering after it launched Bolt back in October 2024. The company’s rivals Zomato, its quick commerce unit Blinkit, and Zepto also have their offerings in the instant food delivery space – which has suddenly heated up over the past few months. What are the various offerings for quick food delivery in the market?

• The company’s quick commerce unit Blinkit operates Bistro, through which food items are delivered from its dark stores.
• Zomato also has Everyday – through which the company offers home-style meals from centralised kitchens in a 15-20-minute delivery timeline.

How do these models differ?

In the model deployed for Snacc, Bistro and Zepto Cafe, the companies procure food items across 50-60 stock-keeping units (SKUs) from third-party vendors who typically service hotels, restaurants and cafes. In addition, they tie up with companies that provide machines for dispensing beverages such as tea and coffee. Under this model, the orders are serviced from dark stores.

However, in the Zomato 15-minute delivery model, Swiggy Bolt and Swish, food is delivered from restaurants located in close proximity to the customer. A number of top restaurant chains such as Faasos, Starbucks, Sarvana Bhavan, Wow Momo, Blue Tokai, Domino’s Pizza and others have come on board with these companies for quick deliveries of certain items.

Are these offerings growing?

Swiggy has said that Bolt now contributes 5% to its overall food delivery volumes. It has scaled up this service to over 400 cities.A founder of a restaurant chain told ET that his firm saw 15-20% growth in orders once rolled out on Bolt across the 30-40 locations where it was made available.

While Snacc and Bistro are still relatively new, Zepto CEO Aadit Palicha had said in December that Cafe was clocking 30,000 orders per day and that the company was rolling out over 100 Cafe stores per month. The company is aiming to achieve a Rs 1,000 crore annual revenue run rate (ARR) during the next fiscal year.

By March this year, Swish plans to have 150 centralised kitchens in Bengaluru, and then expand to other tier-I cities.

What are the concerns around these models?

The jury is still out over the profitability of quick commerce, which mainly sells groceries and other consumer goods. With a change in consumer behaviour towards 10-15-minute deliveries, the companies have started offering food delivery in a quicker timeline as well.

“The Cafe model works when it supplements quick commerce operations from the dark stores…this way the company is able to leverage its fixed costs that have already been incurred in setting up the dark store for groceries. But as a standalone business, it’s a tough business because AOVs (average order values) will be low,” a Mumbai-based consumer internet analyst said.

However, in the restaurant aggregation model, Swiggy has said that for Bolt, the AOVs have not been much lower than its usual food delivery operations.