Swiggy had acquired Scootsy in 2018.

Food delivery company Swiggy is merging its Mumbai-based intracity premium food delivery service Scootsy into its app, two people aware of the development told Financial Express Online. Scootsy delivered food from premium restaurants (such as Masque, Nara Thai, Royal China, Trattoria), speciality food stores, fruits, vegetables, sweets and bakery items, toys and games, electronics etc in Mumbai. Launched in 2015, the startup was acquired by Swiggy in 2018, as it reportedly failed to raise capital for expansion, but it continued to operate as an independent brand.

“They (Swiggy) are focusing on high-end food category since the regular food delivery segment has been severely impacted due to lockdown. I think in three-four weeks they will onboard Scootsy’s services onto their app and then shut it,” the source said.

A Swiggy spokesperson confirmed the development to Financial Express Online. “To expand our footprint to all discerning customers across Mumbai, we will be transitioning the services offered by Scootsy to Swiggy’s platforms in the near future. This will be the first major milestone in setting up the premium category for Swiggy. In line with this, all Scootsy customers will be redirected to a curated selection on the Swiggy app.”

Also read: Zomato retreats from big grocery bet; likely to shut down ‘Market’ after two months of testing

Swiggy in the past few months saw an increase in demand for food from premium hospitality brands. The company had also tied-up with ITC Hotels, Marriott, Hyatt, KA Hospitality etc. recently as part its efforts to boost premium food category on its app.

Tapping into high-ticket orders and partnering with five-star hotel brands is among the moves made by Swiggy during the current pandemic to tide over the revenue loss in its core food delivery business. The company had expanded its grocery delivery business in April to more than 125 cities and partnered with FMCG brands and stores such as HUL, Godrej, Dabur, Marico, Vishal Mega Mart, Adani Wilmers, Cipla etc to supply branded essential goods. Recently, Swiggy and Zomato had also forayed into liquor delivery in Jharkhand, West Bengal, and Odisha.