A day after an anonymous blog raised serious questions over Swiggy’s ethics and business conduct, the food-delivery startup has rubbished all allegations. Swiggy has claimed that it was an act to malign the company, and involves former employees. In a detailed rebuttal penned by CEO Sriharsha Majety, Swiggy said that it prides itself in “honesty and integrity” and is making an “attempt to share the real facts.” Also Read - Amazon launches e-pharmacy service in IndiaAlso Read - Dunzo says partner database breached, user data exposed
While the original blog titled ‘Swiggy Sales – A House of Cards’ claimed that Swiggy bloats daily order numbers to pitch for better VC funding, the company said that it has serviced over 1 lakh orders every day in July, and is “very much at the 4 million orders per month run rate.” The actual numbers have been verified by external, neutral auditors (a part of the big four) as a part of their standard due diligence before every fund raise, clarified Swiggy. ALSO READ: Now you can order your food faster with Swiggy s revamped app Also Read - Amazon, Flipkart and others to add labels to Chinese goods sold online in India
On allegations that Swiggy cheats partner restaurants by increasing its own commissions and “violating contractual obligations and promises” with them, the CEO stated, “There is no cheating, no deceit. We have fuelled the growth of many restaurants by exposing them to a large base of consumers on our platform and many restaurants have grown because of us.” The anonymous bloggers (four of them) were apparently a part of the sales team and their jobs included signing up restaurants for the Swiggy platform. “This largely includes signing contracts that we know we are going to go back and renegotiate every few months. That is highly stressful, it eats into our conscience.”
Countering claims that Swiggy lies about its market share, the company declared that it is “the clear market leader” and communicates the same to all restaurants at the time of on-boarding. The food-tech space in India did sales of $300 million in 2016, growing 150 percent from a year ago. Swiggy, along with Zomato Order, FreshMenu, Foodpanda, and the recently-launched UberEats, are key players in the sector. Despite investor pressure and several services shutting shop, food-tech is one of the fastest-growing verticals in Indian e-commerce. ALSO READ: UberEATS food delivery service launched in India, takes on Zomato and Swiggy
Swiggy started operations in 2014 in Bengaluru with only 25 restaurants on its platform. Currently, it has 12,000 partner-restaurants in eight cities (Bengaluru, Delhi, Chennai, Hyderabad, Kolkata, Mumbai and Pune). It recently closed Series E funding of $80 million from global private equity firm Naspers Inc. that also saw participation from Swiggy’s existing investors. Currently, the firm is valued at about $400 million, and services nearly double the orders than closest rival, Zomato. “We are proud about our growth trajectory… The fact that our success causes others disbelief is probably understandable.” the CEO wrote.