The cut-throat competition in the domestic food delivery sector has led to an increased appetite for mergers and acquisitions in key markets such as Mumbai.
Food delivery firm, Swiggy, declared that it had acquired Mumbai-based on-demand delivery firm Scootsy. It was an all-cash deal valued at Rs.50 crore. Another famous food delivery firm, Foodpanda is in the last phase of acquiring Holachef, which had to shut down operations due to losses.
According to ET, Scootsy delivers around 2,000 orders each day and has a team of 700 delivery agents spread over various parts of Mumbai and Swiggy delivers around 500,000 order each day with a team of 55,000 delivery agents.
Increasing competition, Increasing acquisitions
According to reports a large part of the deal proceeds will be used to pay salaries that have been due for over three months at Scootsy.
Foodpanda, on the other hand, will benefit from Holachef’s founding team which will join their management fleet. It will also help kickstart Foodpanda’s cloud kitchen play where Swiggy and Zomato have already made their marks.