Swiggy is set to launch Toing, a separate food delivery app that will cater to the price conscious consumers. The offering will be first live in Pune, a move away from Bengaluru, its usual test market.
Why Pune?
The decision to go live in Pune is likely because of its demographics as the city has a captive student crowd and a young workforce. "Bengaluru is already highly penetrated. In Pune, there is more scope to grow the business. The company is unlikely to scale beyond 4-5 regions in Pune for now," a person familiar with the developments told Moneycontrol.
What will Toing do?
Through Toing, the food and grocery delivery platform will target college-going students and freshers who have just joined the workforce and have a lower disposable income but still wish to order in.
What is Toing?
Swiggy’s Toing will list eateries that can offer affordable meals, largely in the Rs 100-Rs 150 range. The idea is similar to what the company does through the Rs 99 store on the main app but Toing will scale up more offerings and operate like a separate arm.
Swiggy did not reply to Moneycontrol’s queries. However, the app is live on the App store and Play Store.
The app has a green and pink colour scheme.
How is it different from Rapido’s Ownly?
The price point and positioning of Toing will put it in direct competition with Rapido’s food delivery app Ownly. Swiggy is an investor in Rapido.
The move to launch Toing comes shortly after Moneycontrol first reported Swiggy will sell its entire 12 percent stake in Rapido for as much as Rs 2,500 crore and no longer be a shareholder in the company as the company chalks out its own growth plans.
“Many of the new offerings (from Swiggy)…will be towards ensuring that competition does not get a clear opening,” Majety had said in July when he said the Swiggy’s new offerings may result in a potential conflict of interest with the Rapido investment.
How is Toing different from Snacc and Rs 99 store?
Across Snacc, Rs 99 store and Toing Swiggy’s goal remains the same: selling affordable meals. However, the three will solve different use cases. While Snacc will focus on canteen type food items delivered in 10 minutes, Toing will only have meals in the Rs 100-150 range.
To be sure, customers can continue to order Rs 99 meals from the main app but Toing will also have a more expansive list of eateries which will sell affordable meals.
Why did Swiggy launch Toing?
Swiggy’s focus on affordability will likely help it to grow its base of transacting users. Swiggy’s food delivery business had 14 million monthly transacting users (MTUs) as of Q1FY25 and that grew 16.4 percent to 16.3 million in Q1FY26.
It is also launched as a driver of growth.
“...it is very clear that we will want to continue to experiment and expand into, for example, affordability using the 99 Store launch…” Rahul Bothra, group CFO, Swiggy had told analysts while announcing Q1FY26 results.
“...we have come in at about 18.8% gross order value (GOV) growth…we love to see this trend slightly higher in the future quarter. So, that hunger is there in the team to continue to push the boundaries there,” he added.
How many apps does Swiggy have?
Swiggy’s Toing will be the seventh app from the company as it increasingly moves away from its superapp (where all offerings are housed under one app) strategy to a super brands model, where each offering, or business unit, will have a standalone app.
Over the past six months or so, Swiggy has launched separate apps for Crew, a concierge service, Pyng, a platform to book professionals, Instamart, its quick commerce platform, Snacc, a 10-minute food delivery app and Dineout, its dining out arm. These are all over and above its main Swiggy app.
While analysts have long debated on which approach works best, most companies are now launching seperate apps for different use cases to improve the recall in consumers' minds as cross-selling becomes more and more difficult.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
