Swiggy to shut its premium food delivery service Scootsy, merge operations within Swiggy app

The move to merge the operations is expected to help Swiggy tap into Scootsy’s high-end customer and restaurant base, as it seeks to set up a premium category within the app at a time when retaining premium users is increasingly becoming the company’s top priority.

Swiggy had acquired Scootsy in 2018 for about Rs 50 cr, but continued to let it operate as an independent entity & aggregates dining options in Mumbai, catering to niche, premium, high-ticket-size food delivery, as well as high-end bakeries, stores & gifting services.

Over the past few months, Swiggy has partnered with ITC Hotels, Marriott, Hyatt, KA Hospitality among other premium joints to list on the platform.

Even though Scootsy only operates in Mumbai, Swiggy’s prioritisation for premium will be national. The company already lists a clutch of restaurants and hotel kitchens on its app under its premium dining tab.

ET had earlier reported that food delivery apps had seen their average order value surge by at least 65% as customers prioritise trusted brands that cater to the highest hygiene and safety standards, over discounts.

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