STM 301: STRATEGIC MANAGEMENT

Swiggy in India:
Envelopment
Challenge
ABHISHEK PATEL SHREYA MUNDEJA
ABHINAV GUPTA S. VIDYASHREE
SASHREEK JINDAL
 INTRODUCTION

Swiggy is a food ordering and delivery company based out

of Bangalore.
Founded in 2014
Founders: Rahul Jaimini, Sriharsha Majety, Nandan Reddy
Swiggy Journey
It began with 6 delivery excecutives and 25 restaurants on its
platform. In the time of 5 years, it has scaled up with over 2.1
lakh delivery executives and 1.4 lakh restaurants across India in
more than 500 cities.
Main competitors: Zomato, UberEats, FoodPanda

05
 Swiggy
FoodPanda
42 mil monthly orders
3 million monthly orders
3,42,133 app downloads
1,49,030 app downloads
4.2 starts rating
3.3 stars rating

UberEats Zomato
4 million monthly orders 37 million monthly orders
4,88,822 app downloads 7,02,184 app downloads
4.2 stars rating 4.3 stars rating
 Swiggy Business Model
PATNERS
1. Restaurant Patners
Tied up with 1.4 lakh+ restaurants
2. Delivery Providers
After the restaurants pack the order,
a delivery guy collects the order and
delivers it to the customer
Swiggy has its own fleet for delivery
Can be full-time, part-time or
freelancers
COST
STRUCTURE
Expenses on the payroll of its
employees and delivery partners
Maintenance charges and
running costs
Website development, app
development and other costs
associated with a business
framework
Marketing, advertising, and
administrative costs
 Swiggy Business Model
1. SEARCH & ORDER PROCESS
Customer enters the location of delivery and his order which he
can browse

2. ORDER ACCEPTANCE
Swiggy redirects the request to the restaurant.
The restaurant accepts the order and starts preparing and
packing it for delivery

3. DELIVERY
All the drivers receive a signal broadcast when they are in
the vicinity
A driver accepts the order and after picking it up from the
restaurants, delivers it to the customer
 Swiggy Business Model
1. Delivery Charges (from the customers) REVENUE
SOURCES
A delivery fee is charged on all the orders below Rs.250
The amount of delivery charges depends on delivery
distance, order demand, and weather conditions

2. Advertising
Priority listing
Charges on restaurants to provide them preference in the list.
Banner promotions: 
Charges on restaurants to display its banner ad on the app.

3. Commission (primary source of revenue)

It charges a commission from restaurants for generating sales
and delivering food through its fleet. (18-23%)
 Swiggy Business Model
4. Swiggy Access
Swiggy introduced cloud-kitchens for restaurants
It enables the eateries to set up and function in areas where there
don’t usually operate and utilise delivery-only facilities

5. Swiggy Super
It is a monthly membership program (Rs.99 or Rs149)
Users don’t have to pay delivery charges on orders
They are not required to pay extra during a price surge

6. Affiliate Income
Partnership with credit services such as LazyPay
Customers can avail credit peroid of 7-10 days and cashback
offers by paying through it
Swiggy Vs. Zomato, FoodPanda, Uber Eats

DELIVERY

Swiggy: Has own delivery Uber Eats- Its delivery

fleet for order fulfillment
Zomato: Restaurant delivers
the order by themselves.
Zomato Fulfilled Delivery:
Delivery boys through
various Logistics partners,
namely, Runnr, Grab, etc.
partners are independent
individuals who pick up
food from the restaurant
FoodPanda: 30% internally
fulfilled delivery
100% outsourcing of
delivery from 2016
Swiggy Vs. Zomato, FoodPanda, Uber Eats

COMMISSION FROM COMISSION FROM

RESTAURANTS RESTAURANTS

Swiggy: 20-25 percent of FoodPanda: 15-25%

order value commission Express meal
35%
Zomato: 7.5 to 15%
depending on restaurant UberEats: 20-30%
ratings commission
Swiggy Vs. Zomato, FoodPanda, Uber Eats

DELIVERY CHARGES DELIVERY CHARGES

TO CUSTOMERS TO CUSTOMERS

Swiggy: Rs 35 for orders

below Rs 98 and to Rs 25 FoodPanda: Approximately
for orders above Rs 98 2% of the order is charged
for delivery
Zomato: Consumers pay
anywhere from Rs 16 — UberEats: Rs 15 per order
the base charge — to as delivery charge
more than Rs 45 for small-
value orders in Bengaluru
Swiggy Vs. Zomato, FoodPanda, Uber Eats

REVENUE REVENUE

Swiggy: revenue of Rs 442

FoodPanda: revenue of Rs
crore and total expenses
72.13 crore 2018,
for the fiscal of Rs 865
loss of Rs 227.95 crore
crores in 2018

Zomato: revenue of Rs
UberEats: Overall
1,397 Crore in 2018, 188%
UberEats revenue for 2018
jump from the revenue of
was 150 crore
Rs 485 crore in 2017
.
ADNAPDOOF SERIUQCA ALO ZOMATO EARNS MORE, SWIGGY BURNS MORE

OTAMOZ SV YGGIWS STI

CURRENT SITUATION

UBEREATS HEADS OUT, ACQUIRED BY ZOMATO

Swiggy's response?

Swiggy, like Zomato, should dive into unconventional

marketing to target the youth.

Swiggy should look beyond food delivery. This will help

the company in reducing cash burn and will allow it to
focus on profitability.
Conclusion
Swiggy has undoubtedly become a leading online food
ordering and delivery company. It has changed the entire
landscape of how India eats, its innovative business model has
made the life of every foodie easier, tastier, and more fun.

With its fast deliveries, live order tracking, and no restrictions on

order amount, Swiggy is not far from taking a huge chunk of
India’s food-tech market. It has been demonstrated through
Swiggy’s business model.