‘Customer retention, strategic investments…’ CEO names these factors for Swiggy's success
1 min read 18 May 2023, 04:10 PM ISTSwiggy’s food delivery business has turned profitable in March 2023 excluding employee stock option(ESOP) costs.
PremiumSwiggy, the popular food delivery platform, has achieved a significant milestone by turning its food delivery business profitable as of March 2023. Since its establishment in 2014, Swiggy has been dedicated to improving the lives of urban consumers through convenient services.
“Excited that Swiggy turned its food delivery business profitable in March'23, while creating value for all our partners. Our teams have worked tirelessly to build long term value putting customers first each day," Sriharsha Majety, CEO and co-founder of Swiggy, tweeted on Thursday.
As of March 2023, Swiggy’s food delivery business has turned profitable excluding employee stock option (ESOP) costs.
The company's success is attributed to its strong execution, deep consumer love, industry-leading NPS scores, and high customer retention rates. Swiggy's strategic investments, acquisitions, and expansion into Tier 2 and 3 markets have further fuelled its growth.
With an emphasis on innovation, collaborative partnerships with restaurants, and a builder's mindset, Swiggy aims to continue its mission of elevating the dining experience for consumers.
“This is a milestone for food delivery globally, not just for us, as Swiggy has become one of the very few global food delivery platforms to achieve profitability in less than 9 years since its inception," wrote Majety in a blog post.
By implementing initiatives like the Swiggy Skills Academy, on-demand ambulance services, and enhanced insurance policies for delivery partners, Swiggy prioritizes customer's safety and well-being. These efforts have resulted in a significant increase in restaurant partner NPS over the past two years.
Majety also stated, “As our investments in food delivery are starting to pay off successfully , we’re also very excited about the trajectory of our quick commerce business, Instamart."
Additionally, Swiggy's quick-commerce business, Instamart, has shown promising progress and is expected to reach contribution neutrality soon.
As Swiggy's food delivery business celebrates profitability, the company remains excited about the trajectory of its Instamart business and continues to innovate and expand its services, serving as a pioneer in the hyperlocal delivery space.
