In a strategic move to enhance the dining experience of railway passengers, the Indian Railway Catering and Tourism Corporation (IRCTC) has forged a partnership with food delivery giant Swiggy for the supply and delivery of pre-ordered meals through the IRCTC e-catering portal.
Key Collaboration Details:
- Partnership Scope: IRCTC has entered into an alliance with M/s. Bundl Technologies Pvt. Ltd. (Swiggy Foods) for the supply and delivery of pre-ordered meals. The collaboration is initiated as a Proof of Concept (PoC) in the first phase, targeting four major railway stations – Bengaluru, Bhubaneswar, Vijayawada, and Visakhapatnam.
- Expansion of E-Catering Services: The collaboration follows IRCTC’s earlier partnership with Zomato for pre-ordered meal deliveries. The e-catering service through Swiggy is expected to be available soon, providing passengers with a broader range of options.
- Geographical Presence: The initial phase of the collaboration covers key railway stations across India, showcasing a commitment to offering improved dining solutions to travelers.
- Market Dynamics: With Zomato and Swiggy dominating the Indian food delivery market, IRCTC’s alignment with both major players signals an effort to leverage the widespread popularity and efficient delivery networks of these platforms.
Market Insights:
The Indian food delivery market is primarily led by Zomato and Swiggy, with Zomato holding a substantial 54% market share. Between January and November 2023, Zomato recorded a higher number of app downloads (47.5 Mn) compared to Swiggy’s count of 36 Mn.
Swiggy is currently gearing up for an IPO, targeting an impressive INR 10,000 crore revenue in FY24 with a focus on profitability ahead of its listing. Despite a widened net loss in FY23, Swiggy’s operating revenue saw a significant YoY increase of 40%, fueled by the scaling up of its quick commerce vertical.
Meanwhile, IRCTC continues to witness growth in its catering business, with a robust 30% YoY increase in revenue from catering services, reaching INR 507.8 Crores in the last reported quarter (Q3 FY24).
In Shorts:
The collaboration between IRCTC and Swiggy signifies a strategic effort to elevate the onboard dining experience for railway passengers. As the e-catering service expands to include Swiggy, passengers can anticipate a broader array of pre-ordered meal options, adding convenience and choice to their travel experience.
