Swiggy has introduced ‘Snacc’, a standalone application promising delivery of snacks, beverages, and meals within 15 minutes. This initiative aligns with the industry’s shift towards rapid food delivery services.
Launch and Features
Launched on January 7, 2025, in select Bengaluru areas, Snacc offers a diverse menu, including items like chocolate cookies, Indian breakfast, coffee, tea, eggs, rolls, sandwiches, meals, and cold beverages. The app collaborates with brands such as Blue Tokai and The Whole Truth, alongside third-party food providers. Unlike Swiggy’s Bolt—a feature within the main app—Snacc operates independently, utilizing centralized locations with stocked products to ensure consistent and swift service.
Industry Competition
The quick commerce sector is witnessing intensified competition:
Zomato: Its subsidiary, Blinkit, recently launched ‘Bistro’, offering 10-minute deliveries of snacks, meals, and beverages. Additionally, Zomato has introduced a 15-minute food delivery feature in select cities.
Zepto: Unveiled ‘Zepto Cafe’, aiming for 10-minute delivery times.
Magicpin: Introduced ‘magicNOW’, a 15-minute food delivery service piloting across major Indian cities.
Concerns and Regulatory Scrutiny
The National Restaurant Association of India (NRAI) has expressed concerns over these rapid delivery models. They allege that platforms like Zomato and Swiggy, through their standalone apps Bistro and Snacc, might be redirecting customers to their private-label products, potentially disadvantaging restaurant partners. NRAI is contemplating approaching the Competition Commission of India (CCI) to address these issues.
Market Impact
Following these developments, both Swiggy and Zomato experienced stock declines of up to 3.6% on January 10, 2025. Investors are reportedly concerned about the implications of these rapid delivery services and the potential regulatory challenges they may face.
Summary of the news
| Why in News | Key Points |
|---|---|
| Swiggy launches ‘Snacc’ app for 15-minute food delivery in Bengaluru. | – Swiggy’s new app, ‘Snacc,’ offers fast food delivery within 15 minutes in Bengaluru. |
| NRAI raises concerns about the potential impact on restaurant partners. | – NRAI fears that Swiggy’s private-label products might overshadow restaurant offerings, potentially harming partnerships. |
| Competition in the quick-commerce space: Zomato and Zepto follow similar strategies. | – Zomato’s Blinkit and Zepto have introduced 10-minute and 15-minute delivery models, respectively. |
| Impact on Swiggy and Zomato’s stock market performance. | – Both Swiggy and Zomato’s stock fell by up to 4% on January 10, 2025, amidst concerns over rapid delivery services. |
| Swiggy’s ‘Snacc’ app competes with other quick commerce companies like Zomato and Zepto. | – Quick-commerce competitors include Zomato Blinkit and Zepto Cafe, both offering ultra-fast deliveries. |
| Company: Swiggy | – Founded in 2014, Swiggy is an Indian food delivery service operating across various cities. |
| State: Karnataka (Bengaluru) | – Bengaluru is the launch city for Swiggy’s ‘Snacc’ app, a major tech and commerce hub in India. |
| App Details: Snacc | – App focuses on snacks, beverages, and small meals for quick delivery within 15 minutes. |
| Regulatory Concern: NRAI’s approach to CCI | – NRAI is considering a complaint to the Competition Commission of India (CCI) regarding unfair competition from Swiggy’s new service. |
| Launch Date: January 7, 2025 | – The ‘Snacc’ app launched in Bengaluru on January 7, 2025. |
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