Swiggy Aims to Take on Amazon and Flipkart with Maxx Delivery Service
Swiggy Diversifies into Quick-Commerce with Maxx, a New Vertical
20 April 2023
Maxx, a new vertical for Swiggy, intends to supply stationery, creative supplies, baby and children's necessities, pet products, and more.
With a greater selection of SKUs across numerous categories, Maxx strives to bridge the gap between quick-commerce and e-commerce by providing customers with more alternatives.
Swiggy is looking at new business options, such as the pilots of premium grocery delivery service Swiggy Handpicked and e-commerce enabling Minis, as well as concentrating on profitability by shutting down or selling enterprises.
The well-known food delivery service Swiggy just debuted a brand-new vertical named Maxx. Swiggy will send stationery and art supplies, needs for caring for babies and children, pet supplies, and a variety of other things via this new service. The service is presently being tested in a few Bengaluru neighborhoods, and Swiggy intends to expand it to more neighborhoods and product categories depending on how the pilot program goes.
Swiggy wants to fill the void between rapid and online shopping with Maxx. This indicates that Maxx's stock-keeping units (SKUs) will be smaller than the million or more goods supplied by Amazon and Flipkart, but at least twice as many as Instamart's 5,000 SKUs. The majority of categories on Maxx will be focused on the home and family, and products will be delivered in an hour.
To prevent any duplication with Swiggy's quick-commerce division, Instamart, Maxx is not designed to supply everyday necessities like fresh produce and supermarket products that are in urgent demand. Instead, Maxx gives clients additional alternatives by providing a greater selection of SKUs across various categories. Now, it can be seen on Swiggy's app alongside Genie and other services as a different tab.
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Maxx's launch coincides with the addition of additional product categories by Swiggy's rivals, including Blinkit, Zepto, and Dunzo, to broaden their services and boost client retention. The growth pace for the food delivery industry has slowed compared to their forecasts, according to Sriharsha Majety, CEO and co-founder of Swiggy. If they can show the correct product-market fit, this has prompted Swiggy to investigate potential new business ventures.
In addition to Maxx, Swiggy is testing its premium grocery delivery service Swiggy Handpicked as well as Shopify-like e-commerce enabling Minis. By shutting down or selling operations, such as its meat marketplace and cloud kitchen network Access Kitchens, the corporation has also placed a strong emphasis on profitability. Job layoffs have been made in the engineering, operations, and product departments as a result of this.
In comparison to the 1,617 crore loss in FY21, Swiggy's losses more than quadrupled to 3,629 crore in FY22. Nonetheless, compared to the 2,547 crores reported in FY21, the company's operating revenue increased by over two times. About 60% of the total was supplied by Swiggy's marketplace division, which brought in 3,483 crores. Its operational income from its business-to-business (B2B) segment, which includes trading in FMCG products, was $2,147 crore.