Gone were the days when foodies had to rush to their favorite restaurants and retails 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 smartphone. It all looks like a dream come true, and this has simply become possible with the on-demand business model, it has changed the face of the online delivery business these days.
Many of the food delivery giants like Swiggy have come up with an amazing and impressive business model that provides foodies with utmost satisfaction whenever they demand. The Swiggy business model has made doorstep service quite easy and simple for food lovers. It provides a platform to numerous restaurants, retail stores, and cafes to satisfy the hunger of food lovers and expand its business to a great extent.
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 lesser time. If delivery businesses 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. Learn to know how Swiggy makes money? What does its business model include? and much more.
What Exactly Swiggy is?
Launched in August 2014, Swiggy is one of the most popular online food delivery startups. Its platform has more than 5,000,000 installations and is considered as 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 at Bengaluru, India.
As of March 2019, Swiggy has successfully established its roots and successfully operated in more than 100 Indian cities. In September 2019, this food delivery giant launched an instant pick up and dropped service called “Swiggy Go”. Throughout its journey, Swiggy collaborated with more than 25,000 restaurants and provided delivery boys with huge opportunities of earning more penny by providing their valuable delivery service on customers’ demand.
Swiggy is providing its food delivery and ordering service in more than 13 cities in India, including Chennai, Mumbai, Delhi, Bengaluru, and many more. Swiggy hasn’t bagged the success overnight, it has faced various hurdles and milestones throughout its journey, but has successfully overcome all the hurdles and developed its name in this competitive business market.
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 during 2014. (Source)
The company successfully developed a delivery network and achieved massive success. During the COVID 19 pandemic during 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 the food lovers by collaborating with numerous restaurants and retail stores. Swiggy is ruling the hearts of numerous eaters in India by providing them with the excellent food delivery and ordering service as per their demand.
Swiggy Business Model: Explore to Know How it Works and Generates Revenue
Business model of Swiggy is based on a hyperlocal 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 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 its business model to know how it works to provide excellent food ordering and delivery service to its customers, how it generates money by benefiting restaurants and retail shops.
1Key Partners of Swiggy
Swiggy has successfully partnered with Burger King and McDonald’s 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 Swiggy has collaborated successfully, but when we talk about its key partners, then they are:
- Restaurants and retail shops who consider to register themself with the platform.
- Delivery providers who 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.
2 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. Other primary activities which are included are:
- 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 to provide 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.
3 Expenditure Structure
There are numerous expenditures which 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 provided to employees and partners.
- The expense of crafting tech solutions.
- Platform maintenance and marketing cost.
4 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.
5Restaurants and Retail Stores Benefiting from it
Restaurants and retail stores are leveraging numerous benefits, learn to know they are benefited from it:
- Provide on-demand food delivery service to eaters to earn more for their business.
- Restaurants who provide their service by registering their delivery business on the platform.
6 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 ones:
- 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 as per their convenience.
- Delivery providers can use multiple options to receive payment.
Numerous channels are included in the business model, which helps you deliver excellent service and reach a huge customer base. Ensure business expansion through various channels like:
- Impressive mobility solutions.
- Eye-catchy website.
- Social media platforms.
Customer satisfaction is the utmost focus of the business model as it helps in maintaining strong and long term relationships with customers, this 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.
The main resource of the business model is a restaurant and retail shops, while there are many other resources which include:
- Delivery providers who register themself with the platform.
- The technology stack used to provide on-demand service to customers.
- Local partners who agree to provide their service through a digital platform.
10 Earning Resource
The main resource of this business model is customers while there are other resources involved in the business model which help you to generate huge profit from the food ordering and delivery platform, while other earning resource involves:
- Eaters consider making purchases online to enjoy their favorite meal at their personal space and provide delivery fees in return.
- Restaurants and retail stores are offering their service through advanced platforms.
Concluding It Up
Swiggy has undoubtedly bagged massive success in the food ordering and delivery market. Its business model has changed the entire landscape of food ordering and delivery business. It has made it easier for foodies to get their favorite food delivered right at their doorsteps that also with few clicks on the advanced platform.
Swiggy has covered a huge chunk of India’s food market, thus leaning, and considering Swiggy’s 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 and to deliver excellent experience by satisfying the demand for foodies in real-time.