How Swiggy Works: Learn Swiggy Business Model And Revenue Channels

Know how swiggy works

Gone were the days when foodies had to rush to their favorite restaurants and retail stores to enjoy their favorite meals, but now they can get their favorite meal right at their doorsteps with a few simple taps on their smartphones. It all looks like a dream come true, with food delivery giants having made all these possible. And Swiggy is one of them. Swiggy’s business model and revenue channels have some of the essential-to-know strategies that give extensive business understanding.

It made doorstep service quite convenient and simple for food lovers. It provides a platform to numerous restaurants, retail stores, and Cafés to satisfy the hunger of food lovers and expand its business to a great extent. It possibly made it straightforward to reach the customers that can’t reach them and therefore increasing its user base with lots of other benefits.

Swiggy promises to deliver the best services to platform users; many delivery businesses might be wondering how Swiggy has bagged such massive success and has gained huge popularity among customers in less time. If entrepreneurs want to leverage new opportunities for their delivery business, then it becomes vital for them to learn and implement a business model just like Swiggy’s. Down the blog, we will discuss all those topics and some more important facts about Swiggy.

What Is Swiggy?

Swiggy is one of the most popular online food delivery startups in India, launched in August 2014 by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini. Its platform has more than 10Cr installations and is considered one of the best options, especially when it comes to ordering and enjoying your food at your doorsteps. It is India’s most valuable and largest food ordering platform based in Bengaluru, India.

Swiggy has successfully established its roots and managed to reach more than 500 Indian cities. In September 2019, this food delivery giant launched an instant pick-up and drop service for customers to send packages anywhere in the city called “Swiggy Go”. Throughout its journey, Swiggy collaborated with more than 1,28,000 restaurants and provided delivery boys with huge opportunities of earning more pennies by providing their valuable delivery service to customers’ demands.

Lately, Swiggy has launched a new vertical, Swiggy Instamart, offering groceries deliveries in minutes. It delivers services in over 25 cities of India, including Chandigarh, Coimbatore, Pune, and Kolkata. On average, it aims to deliver groceries in 15-30 minutes, partnering with 150 sellers running dark stores and also onboarding more than one seller-run dark store every day in the past few months.

Successful Journey Of Swiggy

Two founders named Nandan Reddy and Sriharsha Majety designed an eCommerce website known as “Bundl” in 2013. This website was developed to provide courier service within India. Later the company turned to the food delivery market; Nandan Reddy and Sriharsha Majety approached Rahul Jaimini and launched Swiggy with their parent holding company Bundl Technologies in 2014.

The company successfully developed a delivery network and achieved massive success. During the Covid-19 pandemic in May 2020, Swiggy laid off more than 1100 employees. The company is also driving its focus on logistics and establishing key resources to grab success in the same field.

Swiggy has created a huge buzz in the market since it was launched; it makes sure to provide the best quality of food to food lovers by collaborating with numerous restaurants and retail stores. Swiggy is ruling the hearts of numerous eaters in India by providing them with excellent food delivery and ordering service as per their demand.

Swiggy Business Model: Explore Some of the Fantastic Strategies Its Revenue Resources

The business model of Swiggy is based on a hyper-local on-demand food delivery business model. It makes use of modern technology and techniques to satisfy the growing demand for foodies in the market. It is one of the best examples of satisfying restaurant business trends in addition to managing to fulfill customers’ demands seamlessly and efficiently.

It acts as a bridge between eaters and restaurants. It operates successfully on a dual partnership model, which proved to be more beneficial for retail stores and restaurants if they opt to perform their food service through the platform. Explore is Swiggy business model image and further explain it in detail.

swiggy business model

Key Partners Of Swiggy

Swiggy has successfully partnered with many food merchants to provide the best food ordering and delivery to the platform users. It also has Google Local Guide and Sodexo to facilitate the customer to place their reviews and make the payment through meal cards, while it has also partnered with Indifi Technologies to provide their partner restaurants with a financing program. There are many partners with whom Swiggy has collaborated successfully, and some its key partners, then they are:

  • Restaurants and retail shops who consider registering themselves with the platform.
  • Delivery providers provide their valuable delivery service to foodies on their demand.
  • Part-time or full-time freelancers who provide their service to earn some extra penny.

Main Activities

One of the key activities of the platform includes developing a technological stack that helps delivery businesses to satisfy the hunger of eaters. Proceeding always towards digital transformation at its peak to ensure utmost comfort to the customers in one primary activity. Besides, Swiggy’s other primary activities include:

  • Develop strong relationships with retail stores and restaurants.
  • Hire full-time and part-time delivery providers.
  • Provide easy and quick payment gateways to provide an excellent experience to customers.
  • Manage and monitor the delivery process to ensure excellent delivery service to foodies.
  • Develop and manage tech infrastructure and keep it updated.
  • Handle customers’ and partners’ problems effectively.
  • Manage customers in order to acquire them.

Expenditure Structure

There are numerous expenditures that Swiggy has to cover during the business operations; this expenditure structure includes the following:

  • Amount to pay workers and delivery partners.
  • Incentives and other advantages are provided to employees and partners.
  • The expense of crafting tech solutions.
  • Platform maintenance and marketing cost.

Customer Segment

Food lovers who love to order their favorite food through digital platforms are considered as a primary customer segment. Explore to know how customer segments are benefited from the platform.

  • Customers who want to enjoy their favorite food at their doorsteps.
  • Eaters who avoid going physically to restaurants and retail stores.
  • Food lovers who love to make a purchase through digital tools.

Restaurants And Retail Stores Benefiting From It

Restaurants and retail stores are leveraging numerous benefits; learn to know they are benefiting from it:

  • Provide on-demand food delivery service to eaters to earn more for their business.
  • Restaurants provide their service by registering their delivery business on the platform.

Delivery Providers Leverage Advantage From It

Delivery providers are ones who leverage more from the business model; they help you achieve success in your delivery business. There are certain benefits which they can enjoy, explore to know which are those:

  • Delivery providers can accept more delivery requests to earn more through the digital platform.
  • Easy registration and document verification process.
  • It can provide delivery service at their convenience.
  • Delivery providers can use multiple options to receive payment.

Channels

Numerous channels are included in the swiggy business model, which helps you deliver excellent service and reach a huge customer base. Ensure business expansion through various channels like:

  • Customer engagement campaigns
  • Eye-catchy website and app
  • Referral campaign
  • Social media platforms for marketing

Customer Relationships

Customer satisfaction is the utmost focus of the business model as it helps in maintaining strong and long-term relationships with customers, which results in achieving massive success for your delivery business.

  • Reach customers through social platforms.
  • Interact with your customers to know their opinion.
  • Provide foodies with a review and rating system.
  • Provide all-time customer support.

Resource

The main resource of the business model is a restaurant and retail shops, while there are many other resources which include:

  • Delivery providers register themselves with the platform.
  • The technology stack is used to provide on-demand service to customers.
  • Local partners who agree to provide their service through a digital platform.

How does Swiggy Works?

Like all delivery giants across the world, Swiggy also has a similar working process. It connects restaurants, delivery providers,s and customers within the platform. It aims to improve the networking between them with an efficient and impressive solution. Its workflow is:

  • Customers find their nearby favorite restaurants, choose the items, customize it if required, add instructions, if any, and place the order with the desired method.
  • Restaurants or stores accept the order, prepare it and assign it to the delivery partners that are nearby and easily available.
  • Partners accept the request, pick up the parcel from the restaurants and deliver it to the customer’s address thrush within the estimated delivery time.

Revenue Channels of Swiggy

Delivery Charges

One revenue source of Swiggy is the delivery charge from the customers on all the orders. The charge differs based on the distance and surge hours, and locations.

Commission of Store Partners

The restaurants and store partners charge a commission fee on all the orders they receive through the Swiggy platform.

Advertising

Swiggy gives space to restaurants to advertise three brands, food, and offers. Also, there are two types of advertising Swiggy is offering.

  • One is a paid banner advertisement where restaurants can display ads on the app and get greater visibility in that region.
  • Another is Swiggy allows restaurants to be listed on top available restaurants as a paid advertising service.

Swiggy Access

Swiggy helps its restaurant partners to find a dark kitchen to extend its services and reach near to the customers for swift services, and it charges them access fees.

Swiggy Super

Swiggy gives its users some leverage with premium accounts like zero delivery charge when orders are above $99, no surge charges, etc.

Swiggy Go

Allowing users to pick and send parcels from one place to another in exchange of the delivery fees

Affiliate Income

Swiggy shakes hands with financial institutions like Citibank, HSBC, and ICICI Bank, earning benefits from it and allowing customers to give rewards on their credit cards.

Concluding It Up

Swiggy has undoubtedly bagged massive success in the food ordering and delivery market. Swiggy’s business model has changed the entire landscape of the food ordering and delivery business. It has made it easier for foodies to get their favorite food delivered right at their doorsteps and also with a few clicks on the advanced platform. Swiggy has covered a huge chunk of India’s food market; thus, learning and considering Swiggy business model for your delivery business can help you to achieve massive success in your business in no time.

You can also consider developing a Swiggy clone for expanding your delivery business with the help of Elluminati to deliver an excellent experience by satisfying the demand for foodies in real-time.


Having More than three years of experience, Nirav is an outreach expert at Elluminati Inc. Having a keen interest in communication, content, and digital marketing, he has worked with many brands and helped entrepreneurs to establish an online presence that drives their business forward.

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