According to Swiggy, a popular food delivery app, the trend of late-night binging is experiencing a significant increase. The company reported a notable surge of 23 percent in orders for burgers, pizza, and biryani after 11 pm.
Driven primarily by tier-1 cities, where students and young individuals relocate for academic and professional reasons, late-night orders for burgers, pizza, and biryani on Swiggy have become a significant portion, accounting for 8.5 percent of all food orders.
Swiggy’s CEO, Rohit Kapoor, has revealed the company’s strategy to leverage this trend by expanding their late-night delivery offerings across cities, thereby increasing the options available to consumers. This move aims to capitalize on the growing demand and further enhance Swiggy’s position in the market.
According to him, the key to fostering growth for major startups like Swiggy lies in recognizing consumer demands and generating additional applications similar to this one.
“Just adding cities will not help. We have already attained a scale. Now, we will have to bring different use cases to the table, add different kind of services. Today, we are still very basic. Going deeper into existing cities will be key,” Kapoor said.
Similarly, being able to effectively tap into the demand for early morning food delivery is another big opportunity.
“I find the early morning rush in households to be very fascinating. 8-9am is a high-tension hour. Our aim will be to solve food problem in this case in a meaningful way,” Kapoor said, adding that he was once surprised to see a consumer ordering chole bhature on the app at an odd hour like 6am.
The total addressable market, as Kapoor points out, has opened up significantly post-Covid and the behavioural shift is here to stay.
