Sustainability is not just a compliance for Swiggy, says Rohit Kapoor

At Storyboard18's Power Of Purpose event, Rohit Kapoor, CEO, Swiggy Food Marketplace, highlighted that the IPO-bound company is in the business of spreading joy, and not in the business of delivering food

By Storyboard18

Published: Oct 24, 2024 12:07:45 PM IST

Updated: Oct 24, 2024 12:28:57 PM IST

Rohit Kapoor, CEO, Swiggy Food Marketplace highlights that for widespread adoption, sustainability needs to be profitable. Just like learning and development, sustainability initiatives are more likely to be prioritized when there is a financial incentive.

Storyboard18's recent event in New Delhi, "Power of Purpose: Sustainability Edition," brought together a diverse group of leaders to discuss the critical role of the young generation and business leaders in driving sustainable practices in India. On October 18, policymakers, industry experts, and frontline change-makers gathered to share their insights and experiences, shaping the roadmap for a more sustainable future. During the session on "Making sustainability the foundation of modern business," Rohit Kapoor, CEO, Swiggy Food Marketplace highlighted that the IPO-bound Swiggy is in the business of spreading joy, and not in the business of delivering food.

While addressing Swiggy's upcoming IPO, Kapoor said his approach hasn't changed towards sustainability despite Swiggy intending to go public. "Whether you're a private or public company doesn't matter today, sustainability is more than just compliance. If we looked at it from a compliance point of view, it would have mattered as we are going public and seeking certain kind of investors. Today, our consumers, society, and employees have high expectations for corporate responsibility, placing significant scrutiny and pressure on businesses going public," Kapoor stated.

Kapoor compared Swiggy's IPO with a person turning 18 and getting their driving license. "I know there is a lot of excitement and we make a bit of public spectacle in India with IPOs. Hopefully it goes well. But, the IPO doesn't keep me awake at night," he shared. It's a 'pitstop', he added.

When discussing "fast" delivery and sustainability, Kapoor emphasized that the biggest impact on a company's footprint is the distance traveled and the type of delivery method used. Fast delivery isn't about speed; it's about proximity. By ensuring supply points are located within a short distance of customer residences, electric vehicles (EVs) can operate efficiently.

Kapoor also shared his experience testing Bolt's delivery service. He noted that consumers often question the freshness of 10-minute deliveries and whether delivery partners are pressured to ride faster. However, the reality is that the same food items can be delivered in 10 minutes as in 30 minutes, as long as they are prepared quickly (e.g., samosas, chai). Pizza is the only category that hasn't been fully integrated into Bolt's fast delivery service.

Also read: Swiggy Food CEO: The IPO doesn't keep me awake at night

There is no signal to delivery partners indicating that they are delivering a Bolt order, so there is no incentive to drive faster or slower, Kapoor emphasized.

"The most significant shift is occurring in the two-wheeler segment. By creating a larger fleet of electric vehicles from the outset, we can avoid the unsustainable practices of the past. Previously, large orders were often split among multiple motorcycles, leading to inefficiencies. With electric vehicles, we can carry much larger quantities in a single vehicle," he added.

Kapoor shared that recently, Swiggy delivered 11,000 vada pavs to a school in Mumbai in partnership with an NGO. This feat earned Swiggy a Guinness World Record for the largest single delivery ever made on the planet.

He also took the nostalgic route and shared how while growing up in Calcutta, Durga Puja had been a deeply ingrained part of his life. "Years ago, I learned about the discrimination faced by widows in pandals, particularly in the Sundarbans, where the term "tiger widows" refers to women who lose their husbands to tiger attacks. Many of these women, often in their 40s and 50s, had never experienced a Puja. This year, we created a pandal on a boat and traveled to the remote areas of the Sundarbans where these women live. We cooked bhog on the boat, allowing them to participate in a Puja for the first time."

Sustainability is driven by both corporations and individuals, he noted. Kapoor shared that his wife has been an environmentalist for 15 years, and he has learned a great deal from her. He emphasized the importance of caring for a wider ecosystem and shared that he has 10 pets and a plant creche at home.

"For widespread adoption, sustainability needs to be profitable. Just like learning and development, sustainability initiatives are more likely to be prioritized when there is a financial incentive. Being fact-based rather than opinion-led is crucial for anyone who cares about climate change," he said. Kapoor recommended Bill Gates' book on climate change as a valuable resource.

Kapoor on Quick-commerce

As competition in the quick commerce market intensifies, it's clear that quick commerce is currently a popular trend. The idea of delivering iPhones in 10 minutes is gimmicky, said Kapoor. He refers to Jeff Bezos's quote about people wanting things faster and cheaper and according to him, this is one thing that will never change. "While quick commerce companies are now labeled as such, the reality is that many things are already being delivered quickly to our homes, from milk to medicines. Who wants to go out and buy anything? It's inconvenient to leave your home, find a parking space, and shop," he stated.

By Indrani Bose