Online meal delivery is just one of the many businesses that have benefited from the disruption caused by the pandemic. Swiggy is a business model that allows business owners to create an engaging, feature-rich food delivery app.
Customers ate their way to happiness, as they were deprived of any restricted or other activities. People are becoming more comfortable with placing orders online via their smartphones, a trend popular among GenZ and millennials.
Swiggy is the most popular online food delivery service. If you want to create an app like Swiggy, it is essential to understand the Swiggy business model. Also, learn how the delivery giant makes its money and works to please more tastebuds.
Swiggy has received more from the market thanks to a new raise, and the company’s value has reached $5.5 Billion. The delivery segment currently has over 15 million users. However, this number is expected to rise and reach 80 million.
Restaurants and establishments are looking for new business models to survive the COVID-19 pandemic. Many vendors are investing in the Swiggy Clone script. White Label Fox can help you find the right solution for your delivery business if you are looking for it.
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 started in August 2014 as an online food ordering and delivery startup. Today, it has over 5,000,000 mobile app installations and is a common household name for anyone who wants to order food online.
Swiggy India’s largest online ordering platform and delivery service are for food. It was established in 2014. The company’s headquarters are in Bangalore. Swiggy is now present in over 500 Indian cities as of 2021. The delivery platform was extended to general product deliveries in 2019 as Swiggy Stores.
Bundl Technologies Private Limited operates Swiggy’s instant pick-up or drop-off service, SwiggyGo. This service is available for various purposes, such as delivering laundry, dropping off lunch, getting lost keys, or delivering documents from your office.
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.
Swiggy’s Success Story. Get Insight!
Swiggy now offers customers the option to receive the delivery at their doorstep. Customers can order hot, fresh meals from different establishments, and the company promises that they will deliver their orders in a short time. Is it possible to see how Swiggy achieved such great success in such a short time? We will look at the Swiggy success timeline and the Swiggy business model to gain insight into the strategy.
Swiggy has become a household name in online meal delivery and ordering. It has been a success since its origination. The company has worked with more than 150,000 restaurants and is a prominent presence in 325 Indian cities. It has overcome all barriers to hot meal delivery.
Swiggy is a modern alternative to the traditional way of ordering, waiting, and traveling to get hot meals to our tables. Foodies can now have their favorite dishes delivered to their doorsteps with just a few taps.
The Swiggy Business Model – How Delivery Giant Works
Swiggy is based on the hyperlocal, on-demand delivery model. The company uses an innovative tech stack to act as a single point for all inquiries. Swiggy’s app is easy to use and allows urban foodies to order from their favorite restaurants and have it delivered to them.
It is easier to order and choose from many restaurants, menus, and prices. Delivery partners can pick up orders from restaurants and deliver them to customers within 20-30 minutes. Swiiggy uses the dual-partnership model, which is beneficial to both customers and restaurants.
One of the best things about Swiggy is that it lists delivery partners and organizes restaurants to deliver within 30 minutes. Swiggy is a hyper-local business model that bridges the gap between food lovers, restaurants, and customers. It works in a dual partnership model and benefits restaurants.
Discover How Swiggy Makes Money. Explore the entire Revenue Model here!
Swiggy can earn in many ways. Economic Times reports indicate that the competition for the top spot in the meal delivery market is up 93%. It has risen from 205 crores to 397 crores. Companies have increased their efforts to expand their fleet and improve their services due to rising costs. Swiggy’s revenue streams will help you make more. Currently, Swiggy has the following revenue streams:
Swiggy makes its revenue by charging customers a small fee for orders placed. The company’s charge increases during peak hours and in unusual weather conditions.
Swiggy purchases goods through commissions. Swiggy collects commissions from restaurants for delivering their meals via its fleet and food delivery platform.
Similar to its competitor Zomato, one of the ways in which Swiggy generates revenue is by selling the attention aggregated on its app to restaurants looking to market themselves.
Swiggy allows two different kinds of advertising across its web and app properties — higher priority listing of restaurants & banner promotions.
Swiggy ads work on a Cost per click model, meaning advertisers only pay if users click on their ads.
It makes advertising revenue in many ways.
- Banner Promotions
- Priority Listing for Restaurants
In Nov 2017, Swiggy launched Access, a program to house multiple restaurant partners under a Swiggy operated central delivery kitchen facility in order to help partners expand to neighborhoods they don’t operate in.
It created the concept based on a cloud-based kitchen. Swiggy Access offers ready-to-use space to its partners even in areas where they don’t operate. Swiggy Access is a company that provides ready-to-use space to its customers. Its primary purpose is to deliver meals to their doorstep.
This inter-city model is expected to change the game in terms of penetration into tier 2 and tier 3 cities. Currently, Access kitchens account for approximately 8% – 25% of order volumes in markets where it has been launched. Restaurants on Access must pay higher commissions than the platform’s current average commissions for delivery only.
Swiggy has launched “Swiggy Super”, a customer-only membership program. After signing up for the program, customers don’t need to pay a surge for excessive orders.
A one-month membership for Rs 149 and a three-month membership for Rs 349 are available, with introductory prices of Rs 49 and Rs 129, respectively. This amount, combined with the repeat orders Swiggy anticipates from this membership program, is expected to increase revenue.
Swiggy’s top delivery company has “Swiggy Go”, launched in 2019 and offered customers instant pick-up and drop service. This service allows customers to pick up, send and drop off their items from different locations across the country.
Swiggy started opening a chain of restaurants under its brand umbrella.
Its pilot restaurant opened in Bangalore, with plans to replicate the model in cities where they have operations like Mumbai and Hyderabad.
Swiggy makes money by partnering with financial institutions like HSBC, Citibank, and ICICI Bank. Affiliate income is a unique and successful way to make money. It is also beneficial for both the affiliates and the bank.
The food delivery company has enjoyed a competitive advantage over other models due to its unique functionality and exceptional customer service. With its top-notch service offerings, it has grown its customer base. You can offer your customers the best delivery and ordering service with an online food ordering app. Professionals developed this app.
It costs less to build an app like Swiggy. Check this out!
App development is now a standard part of eCommerce due to technological advancement. Businesses need a food delivery app to ensure their target audience can access the products and services. Many factors, including determining the cost of app development
- App size;
- Select the platform;
- UI/UX design complexity;
- Technology selected;
- App testing;
- Marketing, etc.
The features and functionality that you select for your branded mobile app will impact the cost of development. You can still get your app developed for a reasonable price if you choose the right partner.
Get your Food Delivery App developed today!
Swiggy is a fast-growing company that started with food delivery but has expanded its services to other parts of the world. The delivery company is expanding its offerings to include emergency supplies such as groceries and stationery. Follow the Swiggy model to grow your delivery business.
Swiggy is challenging market leaders such as FoodPanda and Zomato. Although Swiggy has established itself as a top ordering and food delivery platform, its business model and revenue model are highly sustainable and innovative. Thanks to modern technologies like live tracking and a comprehensive menu, customers have found their lives easier and faster.