SWIGGY, FOODORA AND YELP

SCM
Assignment

Rashmimayuri Rao

Hyperlocal Platforms Section A

Roll Number 038
 Business Model Canvas
Key Partners Key Activities Key Resources Customer Segments Value Proposition
o Restaurants o Partnering with o Local retailers and Customer o Hyperlocal food ordering and delivering
o Groceries restaurants and restaurants o Patron who do not wish to go out solutions.
o Delivery providers retailers. o Delivery personnel. to restaurants. o Manual integration with restaurants.
o Financial firm o Sustain expanding fleet o Spaces for Swiggy o Patrons who want to browse local o Multiple payment modes
o Own private brands of delivery personnel. Access eateries and get food delivered. o Quick delivery usually within 30 minutes.
o Provide patron o Technology. o Patrons who want products o Provide owner app to restaurants providing
Customer Relationships analytics to restaurants. delivered from nearby shops. advanced analytics.
o Provide kitchen o Swiggy Access: Free backend kitchen facility.
o Rating, review & backend facilities to Channels Restaurants/ Retailers o Swiggy Capital Assist program: Providing
feedback system. restaurants looking to o Restaurants not having on demand collateral free loans to partner restaurants.
expand. o Website food delivery service.
o 24/7 active customer o Swiggy SUPER Paid Subscription program:
o Managing online and o Mobile App o Retailers not having delivery
support. Free food delivery & dedicated patron care.
offline payments o Digital Marketing service.
o Social media.
o Providing and o Restaurants wanting to increase
managing last mile customer base.
delivery o Restaurants/ Retailers wanting to
gain brand equity.

Cost Structure Revenue Structure

o Cost of application & Website development o 10-30% commission charged from partner restaurants
o Payroll expenses for employees o Higher commission charged from Swiggy Access restaurants
o Amount paid to delivery personnel for each delivery and for every hour they o Subscription charges for Swiggy SUPER
engaged with the platform. o Delivery chargers
o Cost to access space for Swiggy Access. o Advertising
o Maintenance and marketing costs
Swiggy: Network Effects
Network effect is caused by restaurants experiencing
FOMO (Fear Of Missing Out) and thus leading to a
ripple effect.

For example, if a restaurant is listed on Swiggy but

neighboring restaurants are not, positive network effect
will lead these other restaurants to get themselves
listed.
Business Swiggy is an online food ordering hyperlocal
platform.
Owned its delivery fleet on cost structure.
Delivery personnel was paid for each delivery
Delivery and every hour they engaged with the platform.
It didn’t allow restaurants to deliver on their own.
It charged commission of 10-30% per order.
Revenue It has diversified its revenue stream from
commission to other options such as
subscriptions.
Replicable Easily replicable business model.
Less resource intensive.
Resource Reviews & ratings are shared with restaurant
owners.
It provides partner restaurants with analytics,
Ensure loyalty backend kitchen and 0 interest loans.
Foodora offered a platform that connected
hungry patrons with restaurants.
Foodora has contract based delivery boys.
It also allowed freelancers to provide delivery
services.
Delivery personnel was paid flat rate per hour
plus tips.
It allowed restaurants to deliver the orders.
It charged a flat commission from restaurants of
30% on all orders.
In 2017, commissions constituted 73% of
revenues.
Easily replicable business model.
Less resource intensive.
Riders have smaller delivery zones of around 1
mile enabling quicker delivery within 35 minutes
of patron placing the order.
Yelp helped connect people to local businesses
such as restaurants, shopping outlets, travel,
fitness, night life and others.
Derived commission from GrubHub for every
restaurant fulfilment order that originated from
Yelp.
Delivery done by restaurants, Yelp doesn’t
provide delivery services.
With a large advertiser base of 160,000,
advertising was it’s major revenue source.
Online food ordering constituted the largest
category of transactions by revenue & volume.
Difficult to replicate business model.
Yelp’s model requires customer participation to
write reviews.
Reviews and ratings are audited and used for
decision making.
Provided an opportunity to businesses to
communicate with patrons.
Strengthens entry barrier by leveraging the vast
data it has garnered over time.
Sustainability of the Business Model
Yelp’s model requires consumer participation. Consumers write
reviews and it takes a lot of time to build review portfolio and
recommendations for listed services.
Market planning has to be at a granular and segment level.
Yelp is a hyperlocal platform and faces competition from bigger
platforms such as Google, Facebook and Amazon.
The USP of Yelp is that it is extremely hyperlocal and
competition such as Google may not be able to become this
hyperlocal.
Google and Amazon might face the challenge of diseconomies
of scale while becoming very hyperlocal.
The review and rating system of Yelp helps build loyalty factor
among patrons.