Online meal delivery is one among other businesses that have benefited from the pandemic disruption. Business owners looking to become part of the delivery industry can consider the Swiggy business model to develop an engaging and feature-rich food delivery app for their delivery business.
Devoid of restricted and other activities within the confines of the four walls, customers gorged on the path to happiness. More and more people feel compatible with the approach of placing orders online using their smart devices, which otherwise was popular among millennials and GenZ.
And when it comes to online meal ordering and delivery, a food delivery app like Swiggy grabs the spotlight. Looking to build an app similar to Swiggy, then it becomes crucial for you to understand the Swiggy business model and know-how the delivery giant makes money and works to satisfy more taste buds right away.
New raise in the market has served more on the plate to Swiggy, while the company’s valuation has reached around $5.5 billion. The delivery segment has more than 15 million transacting users; however, the number is predicted to increase and reach around 80 million.
The restaurant or establishments are hitting upon new business models to survive during the downturn caused by the COVID-19 pandemic. Many vendors are choosing to invest in Swiggy clone script. And if you’re the one looking for the same for your delivery business, then White Label Fox is always happy to help you, have a look at our service offering to find the best for your niche.
What is Swiggy?
India’s largest online meal ordering and delivery platform, Swiggy, was founded in 2014. The company is based in Bangalore. As of 2021, Swiggy operates in more than 500 Indian cities. In 2019, the delivery platform extended into general product deliveries as Swiggy Stores.
Are You Planning To Develop A Food Delivery App?
Learn More About Our Readymade Delivery Script.
Operated by Bundl Technologies Private Limited, Swiggy, in 2019, started the instant pickup or dropoff service Swiggy Go. The service can be used for delivering various items, including picking up & dropping off laundry, sending lunch, getting forgotten keys, getting documents delivered from home to office, and more.
Success Story of Swiggy to Have Insight into!
Swiggy has made it possible for customers to enjoy doorstep services. They can order hot and fresh meals from various establishments; the company promises to provide excellent delivery service in a limited time. Are you wondering how Swiggy got immense success in less time? Let’s look at the success timeline and Swiggy business model to have insight into the working strategy.
Swiggy is a common name when it comes to on-demand meal ordering and delivery. Since its launch, it has experienced significant installations and has worked with more than 1,50,000 restaurants, and has an influential presence in 325 cities across India. The company has broken all barriers pertaining to hot meal delivery.
From the old-time when we had to travel, order, and wait to get our hot meals served at the table, we have grown much, and all thanks go to an advanced solution similar to Swiggy. Now food lovers can have their favorite dish delivered at their doors with just a few taps on their smart device.
Swiggy Business Model Explained- Check How Delivery Giant Works?
Based on the hyperlocal on-demand delivery business model, Swiggy acts as a bridge between food lovers and restaurants; the company utilizes an innovative tech stack that works as a single point of contact. The easy-to-use app enables urban foodies to order their favorite meal from local restaurants and get it delivered to their place.
A large option of restaurants and menus with prices makes it easier to choose and order from. The company also has delivery partners, who pick up orders from restaurants and deliver them to customers in less than 20 to 30 minutes. Swiigyy operates on the dual-partnership model, which benefits customers as well as restaurants.
One of the most crucial things about Swiggy is that it not only lists food delivery partners but also organizes restaurants that ensure delivery within 30 minutes. Based on the hyperlocal business model, Swiggy bridges the gap between food lovers and restaurants. It operates on a dual partnership model and is responsible for benefiting restaurants.
How Swiggy Makes Money – Explore the Whole Revenue Model Here!
There are various ways through which Swiggy earns. Economic times reports show that the battle for the top position in the meal delivery market has increased by 93%. It increased from 205 crores to 397 crores. The rise in expense has made firms increase efforts to widen their fleet and their services. And if you are looking to earn more, then have a look at how Swiggy makes money. Presently Swiggy has revenue streams as below:
Delivery Charges
Swiggy obtains revenue from its customers by charging a nominal fee on orders they place. The company increases its charge during peak hours or during unusual weather conditions.
Commissions
Swiggy acquires goods from commissions. The on-demand delivery platform collects commissions from restaurants to deliver their meals through its fleet and food delivery platform to generate sales.
Advertising
Swiggy earns advertising revenue in different ways, including:
- Banner Promotions
- Priority Listing of Restaurants
Swiggy Access
The concept is based on a cloud kitchen, and Swiggy came up with this facility. Swiggy Access provides ready-to-use space to its partners in those areas where they do not operate. With the primary need to bring a meal to customers’ doorstep, the company allows customers to set up their kitchen in a preferred location and let it deliver meals at the fastest speed.
Swiggy Super
“Swiggy Super” is a membership program launched by Swiggy for customers. The program provides unlimited free delivery on orders; customers don’t have to pay surge during excessive demands after subscribing to the program.
Swiggy Go
One of the effective revenue streams of the leading delivery player, Swiggy, is “Swiggy Go.” Launched in 2019, it offers instant pick and drops service to customers. The company earns a tremendous amount from this service and helps customers pick, send, and drop everything from and to different locations anywhere across regions.
Affiliate Income
Swiggy generates revenue by partnering with different financial institutions such as HSBC, Citibank, and ICICI Bank. The affiliate income is a new but successful way to generate money and is beneficial for both parties.
Due to unique functionality and fantastic customer service, the food delivery giant has received competitive benefits over other models. It has increased its customer base with its best service offering. You can even start offering the best ordering and delivery service to customers with an online food ordering app developed by professional developers.
Cost to Build an App Like Swiggy- Check Here!
With the increase in technology, app development has become a part of eCommerce. Be it a banking app, food delivery app, entertainment app, or any other; it’s crucial for businesses to get a food delivery app so their targeted audience can access what they have to serve. When it comes to app development, many factors determine the cost, these includes:
- App size;
- Platform selected;
- UI/UX design complexity;
- Technology selected;
- App testing;
- Marketing, etc.
Mobile app development cost is affected by the features and functionality you choose for your branded solution. However, you can get it developed at a pocket-friendly price by choosing the right development partner.
Get Your Food Delivery App Developed Today!
Swiggy has achieved great success quickly; the company started with the food delivery and spread its service across the globe. The delivery giant is diversifying its business with emergency items such as stationeries and groceries. If you want to walk on the same growth path, then follow the Swiggy business model for your delivery business.
Swiggy is giving tough competition to other market leaders like FoodPanda, Zomato, and many more. The company has emerged as a leading ordering and delivery platform; however, Swiggy business and revenue model is highly sustainable and innovative. Fast delivery, complemented with modern techniques like live tracking, comprehensive menu, etc., has made the life of customers tastier and more straightforward.
Frequently Ask Questions
- User Orders: Customers browse restaurants, select their desired food, and place an order through the Swiggy app or website.
- Restaurant Preparation: The restaurant receives the order and starts preparing the food.
- Delivery: Once the food is ready, Swiggy’s delivery partner picks it up and delivers it to the customer’s doorstep.
- Payment: Payment is made through the app, either via credit/debit cards, online wallets, or cash on delivery.
- Commission from Restaurants: Swiggy charges a commission fee to restaurants on each order. This is a percentage of the total order value and can range from 15% to 30%.
- Delivery Charges: Customers pay a delivery fee that Swiggy collects. The fee depends on the distance between the restaurant and the customer's location.
- Subscription Plans: Swiggy offers a subscription model, such as Swiggy Super, which provides benefits like free deliveries and discounted rates for a monthly or annual fee.
- Advertising: Restaurants can pay to promote their listings on the Swiggy platform to increase visibility.
- Swiggy Genie: Swiggy also runs a delivery service for non-food items, like groceries, medicines, and personal items, under the Swiggy Genie feature, which generates additional revenue.
- Commission Fee: Swiggy charges restaurants a commission on every order placed through the app. This fee varies depending on the restaurant’s location and the agreement with Swiggy.
- Advertising: Restaurants can also pay Swiggy to feature their food items or their restaurant on the platform. This increases their visibility and can lead to more orders.
- Data Analytics: Swiggy offers restaurants access to customer insights, demand patterns, and performance metrics for a fee, helping them improve their operations.
- Order Commissions: Swiggy earns a commission from restaurants on each order placed via the platform.
- Delivery Fees: Charges are levied on customers for deliveries, which vary depending on the distance.
- Swiggy Super Subscription: Customers can opt for a Swiggy Super plan that gives them unlimited free deliveries and other benefits for a fixed subscription fee.
- Promotions and Ads: Restaurants can pay for premium placement and promotions within the app.
- Swiggy Genie: Swiggy also generates revenue through the on-demand delivery service for non-food items, such as groceries or medicines.
- Swiggy Access: Swiggy offers kitchen spaces for restaurants to expand their operations, charging a fee for renting kitchen space.
- Dynamic Pricing: Swiggy adjusts delivery fees based on factors such as distance, demand, and time of day.
- Restaurant Pricing: Each restaurant sets its menu prices, and Swiggy charges a commission from the restaurant for each order.
- Swiggy Super: This subscription model offers customers discounts and free deliveries, ensuring they are encouraged to order more frequently.
- Special Offers & Discounts: Swiggy often runs discounts, promotional codes, and special deals to attract customers.
- Delivery Fleet: Swiggy employs a large fleet of delivery partners (riders) to ensure that deliveries are made promptly.
- Real-Time Tracking: The app provides real-time tracking, allowing customers to know the status of their delivery.
- Optimized Routes: Swiggy uses advanced algorithms and machine learning to optimize delivery routes, ensuring quicker delivery times and minimizing delays.
- Swiggy Go (Genie): The delivery service is extended beyond food, offering a way to send personal items, documents, or packages with the same efficient system.
- Profitability: Despite its popularity, Swiggy has struggled with profitability due to high operational and marketing costs. The company has to balance between attracting customers and making a profit.
- Competition: The food delivery industry is highly competitive, with competitors like Zomato and Uber Eats vying for market share.
- Delivery Logistics: Managing a fleet of delivery riders and ensuring timely delivery across a wide area is a constant logistical challenge.
- Restaurant Partnerships: Swiggy’s success depends heavily on strong relationships with restaurants, which are often under pressure to maintain high quality and timely food preparation.
- Contactless Delivery: Swiggy introduced contactless delivery to ensure the safety of customers and delivery partners.
- Essential Services: The platform expanded its offerings to deliver essential goods such as groceries, medicines, and household items through Swiggy Genie.
- Safety Protocols: Swiggy implemented strict safety protocols, including sanitizing food packages and ensuring that delivery personnel followed hygiene practices.
- Increased Restaurant Support: Swiggy provided financial and operational support to restaurants, helping them stay afloat during lockdowns and restricted operating hours.
- Expanding to Smaller Cities: Swiggy is gradually expanding its services to tier-2 and tier-3 cities in India, making food delivery more accessible.
- Diversification of Services: The company plans to diversify further, expanding its Swiggy Genie services and exploring other on-demand delivery options.
- Technology Investments: Swiggy continues to invest in artificial intelligence and data analytics to enhance customer experience, optimize delivery operations, and personalize marketing.
- Sustainability Initiatives: Swiggy is focusing on reducing its environmental footprint by using eco-friendly packaging and encouraging restaurants to adopt sustainable practices.
Deep Faldu – CTO
Author
As the Chief Technology Officer, Deep Faldu spearheads innovation at White Label Fox, ensuring seamless, scalable, and high-performance app solutions. His technical expertise, problem-solving skills, and commitment to excellence help businesses thrive in the competitive digital landscape. He continuously explores new technologies to enhance product efficiency and user experience.
