CONTINUOUS INTERNAL ASSESSMENT- 1

RESEARCH METHODOLOGY

RESEARCH PROPOSAL ON THE IMPACT OF COVID 19

ON SWIGGY

A Report submitted in partial fulfilment of the requirements for the degree of

Master of Business Administration

By,
Megha Madhu - 2027752
Section J

Under the Guidance of

Dr. Hemalatha R
INTRODUCTION

Swiggy is food ordering and delivering company, founded by techpreneurs Nandan Reddy,

Sriharsha Majety, and Rahul Jaimini in August 2014. It offers a single window for ordering
from a huge variety of restaurants and have their very own unique fleet
of delivery employees pick up orders from eating places and supply it to customers. It is
an entire food ordering and delivery answer that connects community eating
places with city foodies. Swiggy commenced its Journey from Bengaluru with
six delivery executives and 25 restaurants on its platform.

Swiggy is India’s largest food delivery platform, founded in 2014. It has over 55,000
restaurants partner spread across more than 70 cities in India. Providing hassle free, fast food
delivery experience inculcating innovative technology have helped swiggy to gain the market
share it has now. Live order tracking, no minimum order value and 24*7 support are some of
the other major features offered by Swiggy.

STATEMENT OF PROBLEM

Swiggy and Zomato are India’s largest and highest valued online food ordering and delivery
platforms. The advancement in the growth of internet penetration and demand for precooked
meals will see the Indian food-delivery market grow to $8 billion in the next three years, a
Google-BCG report said in January 2020.The Corona virus outbreak has decreased the food
and beverage business, as the pandemic has forced people to stay in their homes. The
HORECA (hotels, restaurants, catering) segment, along with food deliveries, are in a slump,
and the road to recovery looks painful. According to a Red Seer report, the food delivery
sector has seen a 10-20 percent drop from the second week of March. Although the food
delivery companies took measures to ensure the safety and security of delivery executives,
there still has been a drop in order volumes.
The food delivery industry has been a growing sector in recent years with its popularization
due to the way in which it has made the availability of food easier to the people in this busy
world. Due to the continuous advancement in the technologies on the rapid digitization that
has taken place in recent years has made it a rapidly growing industry.

The two major problems faced by Swiggy at this time are:

1. Reduction in sales.
COVID-19 has unusually affected the economic environment of the country as it
required complete shutdown and left the people with uncertainty. It has impacted the
food delivery industry as the sales in the past months have decreased as a result of this
pandemic.
Some of the reasons for this decrease in the sales can be:
 Bottleneck supply: The pandemic required all the businesses to shut down
which meant that all the restaurants and food-joints were closed.
 Reduction in demand: the pandemic has caused the customers to be reluctant
in getting things from the outside, it requires people to be cautious of the
things they touch and hence they are reluctant in getting food from outside
their home.
 Safety concerns: the precautions required to tackle the pandemic makes us
very wary of the things we get in contact with, the people are concerned for
their safety anytime they make contact with the outside world.
 Migration: In India, people working in the metropolitan cities who made up
for a significant part of the customer base has now shifted to their hometowns
making the sales in the most targeted cities go low.
2. Delivery challenge:
In this pandemic situation delivery is another major challenge faced by the online
food delivery system. As the nation went down for a lockdown, the movement of
people was restricted. Even after the unlock process was initiated there are a lot places
which are still containment zones. The movement to this place is still difficult.
 Movement restrictions: During the pandemic, there was complete lockdown
with people being confined to their homes and restrictions on the movement of
people.
 Lack of employees: As a result of the lockdown and the unprecedented loss
happened, swiggy went for a mass layoff. Due to this now swiggy is facing a
 shortage of employees. Due to the pandemic, getting new employees who are
willing to work is also a difficult task.

DATA

The data to support the hypothesis are collected from secondary sources. The data is collected
from reliable sources to avoid any kind of bias.

Evidence to support the problems

The survey conducted by cityvelocity.com between April 8 and April 20, with 3,606
consumers in the U.K, Brazil, South Korea and Italy. The average age of users who took part
in the survey is 45 with heavier users of the platform younger than light users. Based on data
from the results, we analysed online food delivery platform usage, how it has changed given
the COVID-19 pandemic and whether current changes could be long-lasting.

REDUCTION IN SALES AFTER COVID -19:

The above two pie charts provide a comparison between the number of orders received by a
Food delivery representative before and after the day of lockdown.

From this graph it is clearly evident that 25 % of people feel that the food is not
hygienic and that is the reason for the reduction in sales during this lockdown.

Major terms

 Online food delivery platform:

Online food delivery platforms are those which provides, the facility to order food
online from the restaurants which the customer want. This allows the customer to
compare the prices and buy the product. Online food delivery system has wide
acceptance in tier 1 cities of India. These platforms are beginning to gain acceptance
even in the small towns in India.
  COVID-19 pandemic:
The Global pandemic hit India in the year of 2020. This led to the nation-wide
lockdown and death of many hundred people. There are no vaccines for this pandemic
and that is what makes it the worst.
 Sales volume:
The sales volume is the number of sales made on a particular time period. In this
study it refers to the number of orders received. Before pandemic the sales volume
was high and it showed and increasing trend. After the pandemic the sales volume
drastically reduced.
 Food delivery operations management:
Delivery was a challenge for swiggy even before the pandemic. As people want to get
the food delivered within shortest span of time. At time this was a major challenge.
Adding to this after the pandemic, the movement people are restricted which makes it
even worse.

Hypothesis

“The sales volume of Swiggy is lesser in pre COVID-19 time as compared to that in the
post COVID-19 time with the increased delivery challenges.”

References

1. Gupta, D. (2019, June 2). The Swiggy Delivery Challenge (Part One) - Swiggy

Engineering & Data Science. Medium. https://bytes.swiggy.com/the-swiggy-

delivery-challenge-part-one-6a2abb4f82f6#:%7E:text=If%20we%20show%20too

%20few,leads%20to%20bad%20customer%20experience.

2. Boyle, K. (2020, June 29). How COVID-19 Is Impacting Online Food Delivery Platforms.

CitiGPS. https://www.citivelocity.com/citigps/how-covid-19-is-impacting-online-

food-delivery-platforms/