Swiggy shares jump over 5% on expanding 10-minute food delivery service to 400 cities

Shares of online food and grocery delivery company Swiggy surged by over 5% on Monday after the company announced it is expanding its 10-minute food delivery service, Bolt, to over 400 cities and towns across India.

Initially launched in Bangalore, Chennai, Hyderabad, New Delhi, Mumbai, and Pune, Bolt is now also active in cities such as Jaipur, Lucknow, Ahmedabad, Indore, Coimbatore, and Kochi.

Andhra Pradesh and Telangana have witnessed the highest adoption of Bolt, followed by Haryana, Tamil Nadu, Gujarat, West Bengal, Rajasthan, and Punjab, according to a company statement.


Swiggy said it is actively partnering with restaurants to optimize order prioritization for Bolt orders that include food items with minimal or no preparation time.


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"To ensure safety of delivery partners, they are not informed of the distinction between Bolt and regular orders, and there is no incentive for fast delivery. The delivery radius for Bolt is limited to 2 km as of now which also increases familiarity and enables faster delivery," the company said.

Additionally, the speed of delivery is optimized by prioritizing delivery executives closest to Bolt outlets.

Designed for speed, Bolt focuses on dishes that can be delivered without compromising taste, freshness, or quality. It delivers food from more than 40,000 participating restaurants, with a range of over 1 million items to choose from.
Shares of Swiggy, which recently made a muted debut on the exchanges, were up 10% from their listing price. Following the debut, a number of brokerages have initiated coverage on the stock, with some issuing bullish bets.

UBS has a Buy rating on Swiggy with a target price of Rs 515, citing growth potential amid India’s expanding online food delivery and quick commerce markets.

The brokerage noted that Swiggy is well-positioned to benefit from its improving margins and increasing scale. It views Swiggy’s evolving business model, focused on online food delivery (OFD) and quick commerce (Q-com), as a strategic advantage, setting the company up for long-term growth in an expanding yet competitive Indian market.