Indian Economy News

Swiggy inks pact with RBML to build EV ecosystem in India

Swiggy, a food ordering and delivery platform, announced on Thursday that it has formed an agreement with Reliance BP Mobility Ltd. (RBML) to develop an electric vehicle ecosystem and battery-swapping stations for its delivery partners across India.

Swiggy said in a statement that it has teamed with Hero Lectro and Fast Despatch Logistics to enable end-to-end delivery of its orders via freight e-cycles.

Making deliveries using EVs is expected to reduce vehicle operating costs by up to 40%, resulting in increased earnings for Swiggy's delivery partners, according to the company.

Niti Aayog CEO Mr. Amitabh Kant commented on the project, saying that the Indian industry must continue to push for the adoption of electric vehicles as part of the country's overall efforts to transition to sustainable and environmentally friendly mobility.

Swiggy's commitment in this direction is a positive step, he continued.

"Every month, Swiggy's fleet delivers millions of orders, with our partners traveling an average of 80-100 kilometers per day. As we seek to provide greater convenience to our customers, we are also conscious of our operations' environmental impact and are taking the necessary efforts to make our journey more sustainable" Mr. Sriharsha Majety, Swiggy's CEO, stated.

Transitioning to electric vehicles is a critical step in this approach. It will benefit not only the environment, but also the company's delivery partners, who will be able to earn more, he noted.

RBML will deploy battery switching stations every few kilometres to create a robust and sustainable last-mile food delivery infrastructure. According to the statement, a single pre-charged battery allows for a trip of almost 65-80 kilometres.

"Our partnership with Swiggy has the potential to disrupt the delivery and transportation industries in the country and encourage EV adoption. Swiggy and their delivery partners would undoubtedly benefit greatly from our extensive network of Battery Swap stations" Mr. Harish C Mehta, CEO of Reliance BP Mobility Ltd., stated.

Swiggy is also collaborating with Hero Lectro and Fast Despatch Logistics on the deployment of electric cycles for last-mile delivery. According to the statement, the pilot, which is now active in Hyderabad, will be expanded to other metros in the coming months.

Swiggy, which was founded in 2014, connects customers with over 1,50,000 restaurant partners and businesses in more than 500 cities.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.