Swiggy expects continued strong role of 10-min food delivery service 'Bolt' in driving growth

New Delhi, Nov 27 (PTI) On-demand convenience firm Swiggy expects its 10-minute ready-to-consume food delivery service 'Bolt' to continue to play a strong role in driving its overall food services growth, having reached 10 per cent of total deliveries, a top company official said on Thursday.
     Swiggy is currently offering its Bolt services across over 700 cities in India, contributing one out of every ten orders to the platform.
     "It will continue to play a strong role...it is not like it is going to be the only channel," Swiggy Food Marketplace CEO Rohit Kapoor told reporters here when asked how the company sees the growth of its 10-minute food delivery service.
     Speaking on the sidelines of the launch of the report -- How India Eats -- by Swiggy and Kearney, he said the trend of customers wanting to consume a specific food at a particular time and restaurants curating those products to meet the rising demand is driving the growth of quick food delivery services.
     Asked if the growth of Bolt would mean more cash burn for the company, Kapoor replied in the negative, saying it does not have a "big impact" on the company's "economics".
     "In fact, it's good for frequency, good for uptake. It is not likely to consume any cash from our side. In fact, each order is profitable for sure," he asserted.
     While Kapoor did not share a growth outlook for Bolt, he said for the overall platform, "we are continuing to guide to 18-20 per cent growth year-on-year on GOV (gross order value)".
     Asked if Swiggy is making any internal changes following the recent labour code announcement by the government, he said, "...we've been studying it and when the time comes, we'll be ready for it."
     Kapoor further said, "It is better to have a structure. I think, for business, which is at scale, clarity coming through good legislation is far more important than some plus minus which can happen in the immediate term."
     He was responding to a query on remarks by analysts that the code could lead to cost escalation for aggregators, which in turn could be passed on to consumers.

(This story has not been edited by THE WEEK and is auto-generated from PTI)