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Black book on the Comparison of zomato and swiggy
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It all started back in 2014 when two BITS Piilani graduates, Sriharsha Majety and Nandan Reddy decided they wanted to make life easier by changing the way India eats - all with just a tap! With their idea of “hyperlocal food delivery”, all they needed was the tech to power it and were introduced to Rahul Jaimini, who brought this vision to life with the first website. And with this, Swiggy was launched as a food ordering & delivery platform. In August of 2014, Swiggy began operations by signing up a few restaurants in Koramangala, Bengaluru. Soon enough, the first team of Hunger Saviors came into action to deliver food within 40 minutes. Shortly after, Swiggy raised its first round of funding and launched the app in May of 2015. Fun fact: The technology that delivers great food right to your doorstep was completely developed in- house! With love and support from consumers, Swiggy expanded far and wide, first through the entire city of Bengaluru and then across the entire country. As they say, the rest is history.
Today, Swiggy is the leading food ordering and delivery platform in India. The innovative technology, large and nimble delivery service, and exceptional consumer focus at Swiggy enabled a host of benefits that includes lightning-fast deliveries, live order tracking and no restrictions on order amount, all while having the pleasure of enjoying your favorite meal wherever you'd like it
As the food ordering and delivering food giants, they are now growing more digitally by launching various platforms and increasing their services because of the conditions like “when you don’t want to go out to the restaurant, then they bring the restaurant to you. Swiggy has multiple offerings and services for its clients- Swiggy Pop, a single-serve meal delivery service in 30-35 minutes. A selection of items like Indian Thalis, bowl meals, biryanis, burgers, and Asian combos is included in the Swiggy POP menu. All the single-serve meals that come between ranges Rs.99-200 will be delivered in a short time. The other categories of services that come under Swiggy are Swiggy Cloud, the cloud kitchen service and Swiggy Stores. Recently, Swiggy has just launched a platform for partners known as ‘Swiggy Partners’ where they can request for the premium packaging material. It will help them get the service at a reasonable price and will ensure a better customer experience. The start-up initially started with delivering basic food items and perishables from nearby stores. In September 2019, it propelled a new service ‘Swiggy Go’ (very Similar to Donzo Business Model) which is used to pick and drop a wide array of items such as clothing, forgotten keys, documents, or deliveries to business persons
restaurants and cafes pay premium rates to Swiggy to get prioritized on the app from the list of accessible eateries. Swiggy Access: The start-up has come up with the most innovative idea i.e., cloud kitchen idea. It gives its restaurant partners a ready-to-use kitchen area in those zones where they don’t work. It brings food closer to its customers and empowers restaurants to set up their kitchen in new areas. Swiggy expects to get 25% of income from Swiggy access facility and incorporated 30 partners with 36 kitchens. Swiggy earns subsidiary income as well by collaborating with different financial institutions such as Citibank, HSBC and ICICI Bank. It gives both the parties mutual benefit. It permits clients to get few charges card offers from these organizations. The business model canvas of Swiggy is based on a hyperlocal on-demand food delivery business operation. Working as a bridge between restaurants and customers, Swiggy utilizes an innovative technology platform that works as a single point of contact. Their app allows urban foodies to order food from nearby restaurants and get it delivered at their doorstep. A broad list of restaurants and their menus with prices are exhibited in the app to choose and order from. Apart from accumulating restaurants, Swiggy also has its own fleet of delivery partners. They pick up orders from partner restaurants and deliver it on-demand in less than 30 minutes. Because Swiggy operates as a dual-partnership model, it also benefits restaurants that can receive more orders from customers using their own Swiggy app. Once the order is placed, they will know the order details, prepare the order and deliver it to Swiggy drivers. This way, restaurants don’t need to use their own delivery personnel, saving costs and efforts. All the Swiggy drivers in the vicinity receive a broadcast signal on their own Swiggy drive app when the order is placed. After they accept the order, they deliver it right on the customer’s doorsteps.
Sodexo Meal, Ticket Restaurants Meal & Zeta Food Card – Got these meal cards? Great! Use them on Swiggy for your food orders. Others LazyPay Pay now or pay later for your meals, LazyPay is here on Swiggy for you to handle your lazy moods of payments! Cash-On-Delivery Old is gold, isn’t it? Pay for your Swiggy orders in cash if that is more convenient for you. Another value proposition is its delivery competency. Its fleet size increased to 45,000 delivery personnel. It has over 20,000 active restaurant partners on its platform. It’s operating in 8 cities and has even launched a central kitchen base facility for various restaurants. Swiggy has more than a million app downloads. Customer Relationships of Swiggy Swiggy has positive customer relationships. It provides 24/7 active customer support to help customers anytime, anywhere. It uses ‘Customer Support Chat’ services. It also has active social media pages where it responds promptly. To stay in touch with its customers and partners, it has developed excellent rating, review, and feedback systems.
Channels of Swiggy The channels of Swiggy are mobile app, websites, and digital marketing. Its mobile app is available on both Android and iOS. In 2019, Swiggy launched Swiggy Stores and Swiggy Go to expand beyond food delivery. Key Resources of Swiggy As it has partnerships with local restaurant and shops, its main resources are local partners. To name a few, Biryani Blues, Keventers, BombayKery, Wok Paper Scissors, and Yogisthaan are the bestselling restaurants at Swiggy. Other key resources are delivery providers and its own human resources to manage administrative and technical operations. Technology is another resource it uses to operate its apps. Key Activities of Swiggy Its key activities include: Building partnerships with eateries and retail shops Hiring delivery providers and suppliers (full-time/part-time/freelancers) Acquiring customers and managing their orders Managing delivery and payment process
traveled 4 km. Besides, they are paid an additional Rs.20 in unseasonal weather like rainy days. Also, Incentives are given on the basis of productive performance. Cost Structure of Swiggy Swiggy has to incur costs and expenditures for its day-to-day functions. Its major cost sources are: Payroll expenses for its employees and delivery partners. It also includes incentives and benefits which Swiggy offers to restaurants. For example, giving a commission of about 2- 3%. Costs of application and website development Running costs and maintenance charges Administrative, advertising, and marketing costs Additional costs in terms of promotional offers and benefits given to customers Kitchen base-like facility setup and maintenance costs Returns, refunds, and miscellaneous expenses
Now, comes the most critical question: How does Swiggy make money? To get a definitive answer, we need to analyze Swiggy’s Revenue Model. As it's expanding its business strategy and operations day by day, the revenue streams of Swiggy are also considerably increasing. There are mainly 6 revenue streams at present through which Swiggy makes money:
The first type of revenue stream Swiggy obtained is from its customers. A nominal delivery fee of Rs. 20 to Rs. 40 is charged from customers on orders below a threshold value of Rs. 250. Swiggy raises the charges during high order demands or unusual weather conditions.
Swiggy acquires another major part of the revenue stream from commissions. It collects commissions from restaurants to generate sales leads and to deliver their food items through Swiggy’s fleet. Restaurants have to pay 15% to 25% on every order placed from Swiggy’s website.
Swiggy earns advertising revenue in the following ways: Banner Promotions Swiggy promotes and displays ads of various restaurants on its app. Restaurants, related to different regions, receive greater visibility via banner promotion and pay price for the displayed page. Priority listing of restaurants Swiggy charges restaurants premium rates to give them priority in the list of available restaurants. A restaurant has to pay high if it wants to be displayed higher on the list.
