Swiggy shares witnessed strong investor sentiment on Monday after the company announced the expansion of its quick-service food delivery vertical 'Bolt' across 500 cities. The shares rallied over 12% on the National Stock Exchange, driven by the timing of the announcement. Interestingly, it came just a day after its rival Zomato revealed plans to shut down its 10-minute food delivery service, Instant, owing to weak demand play.
On Monday, Swiggy shares concluded the trading session at Rs 343 price level, up by 12.35% on the National Stock Exchange.
Swiggy launched Bolt last year (October) and has expanded its reach to metro areas and Tier 2 and 3 towns alike. It has a strong brand network with over 45 thousand restaurant brands. "In less than 6 months of being launched, Bolt already powers more than 1 in every 10 Food delivery orders delivered by Swiggy," the company said in a release.
"With delivery radius limited to 2 km, the service maintains quality while ensuring reliability. Popular QSR brands like KFC, McDonald’s, Subway, Faasos, Burger King, and Curefoods are already live on Bolt, alongside a fast-growing roster of local favourites," the release added.
Swiggy Share price
The shares of the company have remained under heightened pressure since its listing. In the last 6 months, Swiggy shares have witnessed a sharp decline of over 24%, dropping from Rs 456 to Rs 343 (currently) on the National Stock Exchange.
On a year-to-date basis, the decline has been even steeper. So far this year, the company’s shares have dropped over 36% on the bourses. The recent announcement appears to have offered some much-needed relief to investor sentiment.
"Bolt fits into the way people live today. You’re hungry, you want something now, and you don’t want to compromise. We built Bolt for that moment. Seeing it scale to 500-plus cities in just a few months has been incredible. And this is just the beginning," said Rohit Kapoor, CEO, Swiggy Food Marketplace.
Its rival Zomato had announced the shutdown of its 'Quick' service vertical last week(similar to Swiggy's Bolt) citing a muted profitability.
