⚡ Why Swiggy's Co-founder is Betting Big on the Night Time Economy
⚡ Why Swiggy's Co-founder is Betting Big on the Night Time Economy
What would happen if cities never slept? What if you could shop, party or eat anytime you wanted day or night? The impact could be as huge as an extra $30 bn (half of Mumbai's GDP) on our economy!
Swiggy's Co-founder and CEO, Sriharsha Majety, is betting big on the Night Time Economy.
We recently came across an article by him advocating for it, especially full-night delivery.
If this happens, Swiggy will obviously get a direct revenue boost.
But would India's economy benefit if cities never slept?
Let's dive deeper…
🤔 What is "Night Time Economy"?
Right now, most of our GDP and economic output comes from work that is done in just 10-12 hours. But what if we utilised the entire 24 hours?
Enter Night Time Economy (NTE): which includes all economic activities done between 6 pm and 6 am.
Like bar-hopping and clubbing?
Nope, the night time economy also includes sophisticated stuff like art and culture.
How many times have you been on a vacation, wanting to explore the city at night, only to find out that all major attractions close down at 6 pm?!
With NTE, museums, and theatres could operate at night. Cities could unlock their rich culture and heritage, giving a boost to tourism and local employment.
Daytime businesses could also be extended till late hours.
Let’s say the local street vendors/grocery shops were allowed to stay open till late at night. They could earn more. And you, the consumer, would no longer have to go grocery shopping on a Sunday morning or in the scorching heat of the day!
A part of the daytime demand would also shift to the night.
A lot of people right now skip shopping when they see huge crowds. This could be avoided if shops were open for longer. Result? More sales!
Starting to see the benefits of NTE? Wait, there's more!
🤓 How NTE Could Change Work As You Know It!
With NTE, organisations could extend their operations to run 24/7. To do this, they could employ people from around the globe.
With more employment and a new shift, more people would be out and about at all times. This means more business for transport services, eateries and all other businesses. You see, NTE would create a domino effect, opening up multiple revenue streams and growth avenues for the economy.
The added plus side for us: We could choose flexible work hours according to their productivity and will. This means increased efficiency and satisfaction of employees in the workplace.
With NTE, growth will never sleep.
Still skeptical about NTE? Let’s show you some numbers of cities that never sleep.
🌆 Cities That Never Sleep
London's Night Time Economy is a classic evidence of how NTE can boost the GDP of a country. London represents up to 40% of the £66bn estimate for the total UK night-time economy and supports around 7,23,000 jobs. Here, take a look:
(Link: https://datawrapper.dwcdn.net/kBJMT/2/)
The economic impact of the night time economy can also be seen on the rest of the economy. The night time workers spend their income on goods and services during the day. This creates more demand and growth. NTE also supports another 536,100 jobs (most of them in the daytime economy). It is responsible for 1.26 million jobs overall.
Talk all about the night time economy, and not mention the city that never sleeps? Heck, no.
Here, look at the activities frequently carried out on a typical night out in New York City:
(Link: https://datawrapper.dwcdn.net/3Ntja/1/)
The nightlife of NYC is the identity of the city and is rightly famous for its art, bars, food services, concerts, sports, and experiential activities.
It brings a lot of revenue to the economy of NYC. In 2022, the nightlife industry supported 300,000 jobs with $13.1 billion in employee compensation and $35.1 billion in the economic output:
(Link: https://datawrapper.dwcdn.net/ymXXi/1/)
(Link: https://datawrapper.dwcdn.net/LRorq/1/)
Now, why is this economy booming so much? Is it merely the job opportunities and entertainment that encourage people to participate in this night life?
It is much more than that. People see the night time as an escape from their monotonous, daytime life. They look forward to the dark, in the hope of lightening their lives under the stars.
(Link: https://datawrapper.dwcdn.net/bmGXx/1/)
Now that all the benefits of NTE are in the light, the Indian government has taken this hint and has given Mumbai the nightlife it has been craving for. The Maharashtra cabinet has allowed shops and establishments to open all day, and all night long from 27th January, 2020.
However, liquor shops must shut down at 1:30 am, and none of the shops and malls can operate in residential areas late at night. In Budget ‘21, Finance Minister Nirmala Sitharaman announced that women will be allowed to work in all sectors and in night shifts, with adequate safety measures and rules in place. This move will benefit 15 lakh women in India and contribute to a 1-2% increase in women's labour force participation in 2021. These are some baby steps towards a thriving NTE in India.
Delhi and Haryana have also taken steps towards this. They have allowed bars to stay open 24/7. In Gurugram, hotels, and the hospitality industry have been allowed to stay open an extra hour.
Just this step of staying open an extra hour has boosted revenue by 25% and job creation by 15%!
Allowing NTE to fully bloom would boost the GDP of the top 10 cities by 6%, adding at least $30 billion to our economy!
⏲️ The Added Benefit of the Night Time Economy
This could also have another unexpected benefit.
With NTE coming in, and the nights being as bright as the days, we can hope for a reduction in crime rates. New York has been witnessing the least night crimes over the last two decades with a steady drop in violent crimes. Fewer than 300 murders were committed in NYC in 2017, the lowest since 1951, and a considerable reduction from 2,245 in 1990. How has this been possible?
Regulations and effective policing. NYC and London have devised proper guidelines and norms, and appointed officials (Night Czar, Night Mayor, and Director of Office of Nightlife and Culture as they call it) to ensure smooth operations in cities during the night. India too should take notes.
Every problem is an opportunity for a solution. India can no longer stay in the darkness of the night. We need to unlock our true potential and move from darkness to light.
What steps can be taken to ensure a safe night time economy for India?
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Dark night rises
What are the downsides? Like the light pollution? It can’t have only positive impact.