After Zomato, the Indian Railway Catering and Tourism Corporation (IRCTC) has collaborated with rival Swiggy for the distribution and delivery of pre-ordered meals through the former’s e-catering portal.
“IRCTC has tied up with M/s. Bundl Technologies Pvt. Ltd. (Swiggy Foods) for supply & delivery of pre-ordered meals through IRCTC e-catering portal as a PoC (Proof of Concept) in the first phase at four Railway stations — Bengaluru, Bhubaneswar, Vijayawada & Visakhapatnam,” said IRCTC in a statement to the stock exchange on Thursday.
This development comes four months after Zomato partnered with the IRCTC for the supply and delivery of pre-ordered meals on a pilot basis in October last year. The service was then announced for five railway stations – New Delhi, Prayagraj, Kanpur, Lucknow, and Varanasi, in its first phase.
Continue Exploring: Zomato partners with IRCTC to launch meal reservation for railway travelers
Meanwhile, as per its statement, IRCTC indicated that the e-catering service through Swiggy might be available soon.
Presently, the Indian food delivery market is dominated by Zomato and Swiggy, with the Deepinder Goyal-led startup holding the lead with approximately 54% market share.
As per an analysis, between January and November 2023, Zomato also led the total number of app downloads (47.5 Mn) while Swiggy’s count stood at 36 Mn.
Swiggy, meanwhile, is gearing up for its IPO and aiming to achieve an INR 10K revenue in FY24, along with profitability ahead of its listing.
Continue Exploring: Swiggy may file IPO by fiscal year end, plans to raise capital with combination of offer-for-sale and new issue; Prosus contemplates stake reduction
However, in FY23, Swiggy’s net loss widened by 51% to INR 4,179.3 Cr from INR 3,628.9 Cr in the previous fiscal year. Despite this, its operating revenue experienced a notable 40% year-on-year (YoY) increase, reaching INR 8,264.4 Cr, driven by the growth of its quick commerce vertical.
Meanwhile, amidst a vast pool of railway traffic, IRCTC continues to experience a surge in its catering business. Its revenue from catering services increased by almost 30% year-over-year to INR 507.8 Cr in the last reported quarter – Q3 FY24.
Continue Exploring: IRCTC expands its footprint, ventures into non-railway catering business