Swiggy’s stock climbed nearly 10% on Monday, May 5, as investor sentiment turned bullish following two major developments. The food tech firm’s quick commerce service, Bolt, expanded aggressively, while rival Zomato announced its exit from similar operations.
Swiggy’s Bolt Gains Speed Across India
Launched just in October 2024, Swiggy’s ‘Bolt’ is reshaping the quick food delivery landscape. In less than six months, it has reached over 500 cities—including metro hubs and Tier 2 and Tier 3 towns—serving as a key driver behind the company’s growth.
Swiggy revealed that Bolt now facilitates more than 10% of its overall food orders. The platform operates within a tight 2-kilometer delivery radius, optimizing speed and quality. Bolt’s curated menu focuses on high-demand items with minimal prep time, powered by backend intelligence and operational efficiency.
Major QSR brands like KFC, McDonald’s, Subway, Burger King, and Curefoods are already integrated into the Bolt network. Additionally, local food brands continue to join, enhancing the platform’s reach and relevance.
Zomato Pulls the Plug on Quick Commerce
Meanwhile, Zomato announced it is discontinuing both its ‘Quick’ and ‘Everyday’ services. In its latest earnings filing, the company admitted that 10-minute deliveries weren’t sustainable under current infrastructure conditions. Zomato cited low restaurant density and limited kitchen capabilities as factors leading to inconsistent customer experiences.
“We are not seeing a path to profitability in these segments without compromising customer satisfaction,” Zomato noted. The decision to wind down these initiatives came after months of experimentation showed no significant lift in demand.
Swiggy, in contrast, appears to have cracked the code with Bolt—combining smart logistics and a tightly managed ecosystem to ensure both speed and reliability.
Market Reaction and Investor Outlook
At the time of reporting, Swiggy’s share price was trading at ₹333.55, marking a 9.24% rise from the previous close of ₹305.35. The stock opened at ₹308.70, quickly gaining traction on the back of the Bolt expansion news and Zomato’s strategic pullback.
| Stock | Opening Price (₹) | Current Price (₹) | Daily Change (%) |
|---|---|---|---|
| Swiggy | 308.70 | 333.55 | +9.24% |
| Zomato | — | — | Discontinuing ‘Quick’ |
Analysts note that Swiggy’s strategic positioning and operational agility are key differentiators, especially as consumer behavior continues shifting toward instant gratification. The market is watching closely as the company doubles down on Bolt, with implications for broader market trends in food delivery, auto stocks logistics, and retail supply chains.
That said, with the bank rally showing signs of tapering and Nifty trading in a volatile range, Swiggy’s sharp rise stands out as a sector-specific upswing fueled by innovation and strategic clarity.
For more details on Swiggy’s expansion strategy and investor filings, visit Swiggy’s official website.