Swiggy and Big Basket turn focus towards next cash cow : Milk Supply

Food-delivery platform Swiggy and online grocer BigBasket got attracted towards next big cash cows, that are milk-delivery startups, that will help them to elevate their orders' frequency and make sure that their customers think of them on a long-term basis.

Swiggy is in early talks with subscription-based milk-delivery startup Supr Daily for acquisition. Bigbasket had an acquisition talks with Pune based RainCan, Gurgaon based Milk Basket and Bengaluru based Daily Ninja. According to people close to the matter, there hasn't been any finalization on this front.

As per Analysts' opinion, stepping into milk-delivery segment through acquisitions could help Swiggy and BigBasket shoot up the frequencies of monthly orders through their platforms. With the current frequency count standing at 4-5 times a month, the acquisition of milk-delivery startups could help the players increase the count to as high as 15-20 times per month.

Swiggy handles more than 3,00,000 orders every day, while BigBasket caters to 60,000-70,000 orders per day, as per industry estimation. RainCan handles 10,000 orders a day, while Milk basket, Supr Daily and Daily Ninja handle 8,000 , 5,000 and 25,000 orders every day respectively.
Both companies are cash-rich as they have recently received fresh rounds of funding. Swiggy received $100 million in a funding round led by Naspers in February. BigBasket is backed by Chinese online retailer Alibaba, and received $220 million in funding.

With the acquisition of subscription-based startups, both the companies will be eyeing to glue a loyal base of customers to its platforms. Online milk-delivery startups too are on the lookout for adding other grocery products due to low margin of earnings on milk-delivery.
Rest assured, the ever-rising competition between industry giants in the grocery-delivery arena will be bringing forth several major changes and introduction of services that are bound to get them more customers.