Tag: swiggy

  • Swiggy Vs Zomato – Which is Better? The Ultimate Showdown (2025)

    ‌‌People’s eating habits have changed significantly, specifically because of the lockdown. People become more familiar with ordering food online from the convenience of their homes. Two players, Zomato and Swiggy, dominate the Indian food delivery industry.

    ‌Food delivery businesses got paced during the lockdown period. According to the research report of the ETC group, Swiggy is the ninth biggest food delivery company in the world, and Zomato is the tenth biggest.

    ‌‌Both these companies are adopting and experimenting with new things to dominate the market. So here we are with the full analysis to let you know who will win the food delivery race.

    ‌‌Food Delivery Industry in India
    Innovations of Zomato
    Innovations by Swiggy
    Figure Overview: Zomato vs Swiggy
    Marketing of Zomato
    Marketing of Swiggy

    ‌‌Food Delivery Industry in India

    The Indian food delivery industry was valued at $156.75 billion in 2024, which is growing at a 10.7% CAGR every year and is expected to reach around $173.57 billion by 2025. Since the growth is not steady and it fluctuates depending on various factors, it is still one of the fastest-growing industries in India.

    The industry has shown tremendous growth over the past couple of years. The main reasons behind the growth are as follows.

    Annual Revenue of Swiggy and Zomato (FY2022 - FY2024)
    Annual Revenue of Swiggy and Zomato (FY2022 – FY2024)

    Swiggy Vs Zomato: The Ultimate Comparison

    Feature Swiggy Zomato
    1. App Interface Simple, fast, user-friendly Fun, witty, review-rich
    2. Delivery Speed Fast & reliable Varies, often slower
    3. Pricing More discounts, value deals Premium rates, Pro needed
    4. Market Reach Strong in smaller cities Dominates big metros
    5. Food Options Wide range + groceries (Instamart) Fine dining + Blinkit partnership
    6. Customer Support Fast, helpful chat support Slower, slightly delayed responses
    7. Subscription Plans Super: Free delivery, no surge Pro: Dine-in perks, fewer offers
    8. Marketing Style Aggressive, influencer-driven Witty, meme-based, community-first
    Swiggy Vs Zomato: The Ultimate Comparison
    Swiggy Vs Zomato: The Ultimate Comparison

    Innovations of Zomato

    Zomato always strives for different innovative stuff to improve customer experience. Some innovations are the next level try, which has the capabilities to disrupt the market. Let’s have a closer look at what Zomato has done so far to stay ahead in the food delivery race.

    Zomato Hyperpure

    Swiggy vs Zomato - Hyperpure by Zomato
    Swiggy vs Zomato – Hyperpure by Zomato

    ‌‌Hyperpure is one of Zomato’s initiatives to provide fresh and high-quality ingredients to restaurants. Restaurants can choose from 1200+ ingredients and kitchen products, which will be directly delivered to the restaurant’s address. Now, there is no headache for restaurant owners buying kitchen commodities for daily use.

    For product outsourcing, Zomato has a network of professionals that includes farmers, mills, producers, and processors. Sellers on Hyperpure are verified and only those sellers are appointed who are looking for a long-term partnership.

    10-min Delivery by Zomato Instant

    Swiggy vs Zomato - 10 min Delivery by Zomato Instant
    Swiggy vs Zomato – 10 min Delivery by Zomato Instant

    According to Zomato, sorting restaurants by delivery time is the most used feature in the app. This shows that customers want quicker delivery; they don’t want to wait. Zomato recognized this and launched Zomato Instant, which is a 10-minute food delivery service for restaurants.

    ‌‌After listening to Allforthis, you might think that Zomato is putting extra pressure on its delivery partners and restaurant partners, but it’s not like that. According to Zomato, their delivery partners are not informed about the promised delivery time, nor are they penalized for late delivery.

    ‌‌All this delivery works on a demand prediction algorithm. There is a network of finishing stations located near the high-demand area for the fulfillment of each order.


    The Zomato Story: Founders | History | Success Story | Growth | Funding
    Zomato is a reputed Indian food-tech company led by Deepinder Goyal. Here’s the story of Zomato’s growth, which covers its startup story, history, founders, ESOPs, revenue, funding, investors, and more! Explore the growth of Zomato’s startup story here.


    Interstate Delivery by Zomato Intercity Legends

    Swiggy vs Zomato - Zomato Intercity Legends
    Swiggy vs Zomato – Zomato Intercity Legends

    Ordering legendary and famous foods from any state to your home is the concept introduced by Zomato. Now you can order biryani from Hyderabad and rasgullas from Kolkata, and they will be delivered to you the next day. ‘Intercity Legends’ is a way to enjoy iconic dishes from different cities and states.

    ‘Intercity Legends’ is still in the pilot stage, but the response is extremely good. It is available for selected customers in Gurgaon and some parts of South Delhi. But the innovative step taken by Zomato to bring iconic of different states to our doorstep is appreciable.

    Your order reaches you via a flight with proper packaging; there is a proper logistics system designed to deliver the order to you within the given time.

    Voice Instructions for Delivery Location

    Mapping in India is not that precise, and sometimes, it is hard to find locations based on written delivery addresses. Zomato, which always tries to enhance user experience, brings a new feature in its app that allows users to provide voice instructions for directions to their homes.

    To use this feature, you need to click on the delivery direction tab and then hold the record button to give the information related to your delivery location. This feature is helpful because sometimes delivery partners face issues in finding the delivery location, and they need to call the customer, which ultimately delays the delivery and leaves a bad taste in customer satisfaction.


    Zomato Business Model | Zomato Revenue Model | Zomato Revenue Breakdown
    Uncover Zomato’s business model, revenue model, and revenue streams, navigating their critical strategies in the dynamic food delivery landscape.


    Street Vendors on the Zomato Platform

    Swiggy vs Zomato - PM SVANidhi Scheme by Zomato
    Swiggy vs Zomato – PM SVANidhi Scheme by Zomato

    Street food is the best, cheapest, and most tasty alternative we prefer over restaurants. Sometimes we are used to eating food from any street vendor and often say, ‘Chal kallu ke chhole bhature khane Chalte hai.’ These street vendors suffered a lot during the lockdown period.

    Zomato, in collaboration with the Government of India, started an initiative to bring this street vendors onto its platform. The government launched the Prime Minister Street Vendor’s AtmaNirbhar Nidhi scheme (PM SVAnidhi scheme) to provide working capital loans and increase digital payments for these vendors.

    So far, Zomato has onboarded approximately 965 street vendors on its platform across different cities like Vadodara, Bhopal, Nagpur, Jabalpur, and Ludhiana.

    Zomato AI

    Swiggy vs Zomato – Zomato AI

    Zomato, a top food delivery company, has launched an AI-based customer support tool called Nugget. This new step is part of the company’s plan to use more technology and reduce manual work. Zomato, a top food delivery company, has launched an AI-based customer support tool called Nugget. This new step is part of the company’s plan to use more technology and reduce manual work. As a result, Zomato has let go of 600 customer support employees.

    The goal of Nugget is to make customer service faster and more efficient. With AI growing quickly, more companies like Zomato are now choosing smart bots to handle customer queries instead of relying only on human staff.

    This move shows Zomato’s focus on using advanced technology to improve how they work and help customers. It also points to a big change in the food tech industry, where automation and AI are becoming the new normal for better service.

    The goal of Nugget is to make customer service faster and more efficient. With AI growing quickly, more companies like Zomato are now choosing smart bots to handle customer queries instead of relying only on human staff.

    This move shows Zomato’s focus on using advanced technology to improve how they work and help customers. It also points to a big change in the food tech industry, where automation and AI are becoming the new normal for better service.

    Earlier, Zomato launched something super cool called Zomato AI, and it’s like having a foodie friend in your pocket! The best part? It can do many things simultaneously, making it a multitasking food guru.

    Let’s say you’re craving a specific dish. Well, Zomato AI can show you a list of all the places around you that serve exactly what you’re hankering for. And if you’re feeling indecisive about what to order, no worries! Zomato AI can suggest popular dishes or great restaurants to make your decision a breeze.

    But what makes it even cooler is how you can chat with it just like you would with a friend. You can send multiple messages, and Zomato AI responds almost instantly, making the whole experience smooth and natural, unlike other AI things that only handle one message at a time. Zomato AI is like your foodie BFF, ready to help you out with any food-related question you throw at it.


    Deepinder Goyal Success Story: Biography | Zomato | Net Worth
    Deepinder Goyal is the Co-founder and CEO of Zomato. Know more about his education, his net worth, his idea of founding Zomato, and his Success Story. Know more on Deepinder Goyal Wikipedia.


    Innovations by Swiggy

    Swiggy is also not behind in the race for innovation; Swiggy has taken various steps to improve its delivery services and user experience.

    AI to Improve Delivery Services

    Swiggy is using AI to enhance user experience across its platform. Its AI-powered neural search allows users to find food and groceries in a conversational way, offering personalized recommendations. For dining out, Swiggy is developing a generative AI-based Dineout bot that helps users discover restaurants based on their preferences. Additionally, the company is building AI-driven tools to support its network of restaurant and delivery partners, streamlining operations and improving service quality.

    Swiggy is using AI technology to fill the loopholes present in the different stages of delivery. Swiggy has improved its AI to the extent that delivery executives can’t change their status to ‘Arrived’ before they reach the restaurant. Everything is connected with GPS for location tracking to ensure transparency.

    Data is the fuel for today’s world, and this company is leveraging it very efficiently. AI is used for the future prediction of orders, customer behavior, and interaction with the help of previously available data.

    With the help of AI, Swiggy provides a personalized list of restaurants based on your previous order, reviews, search, and interaction. It also recommends different dishes that you are most likely to order.


    Behind the Scenes: How Swiggy Runs and Earns | Swiggy Business Model | How Does Swiggy Make Money
    Swiggy is one of the top food aggregators in India. Let’s have an insight into its business model and revenue model to understand the reason behind its success.


    Swiggy One – To Integrate Everything in the App

    Zomato vs Swiggy - Swiggy One
    Zomato vs Swiggy – Swiggy One

    The first membership program launched by Swiggy was Swiggy Super in 2018, which provides free delivery on restaurant orders. Since then, Swiggy has launched different services, like Instamart and Swiggy Genie, to boost its quick commerce.

    So, despite installing the different apps and using these services separately, Swiggy has integrated all these services under one roof called Swiggy One. Now, users have to install only one app, which is Swiggy, create only one account, and buy only one membership plan offered by Swiggy.

    Just by using one app, users can order food from the restaurant, buy groceries using Instamart services, and deliver anything with Swiggy Genie. Benefits like discounts and free delivery can be availed by membership users.

    Swiggy One

    Delivery by Drone

    Zomato vs Swiggy - Swiggy Delivery by Drone
    Zomato vs Swiggy – Swiggy Delivery by Drone

    The food-tech space in India is going through a revolution phase. Swiggy is working on providing delivery using drones, and multiple pilots are conducting tests to make this concept operational. The whole concept revolves around transferring the goods from the dark stores to the nearest seller location of the customer.

    Garuda Aerospace commenced the first trial in Delhi-NCR and Bengaluru to use drones for grocery delivery. Based on the performance of the first trial in Bengaluru and Delhi-NCR, Swiggy will conduct a second trial with ANRA technology, Techeagle, and Marut drone tech.


    Swiggy: Delivering Happiness at Your Doorstep | Founders | Success Story | Vision | Mission
    Swiggy is a food delivery application. It allows the users to access their application from Android, IOS, and website, to order food from nearby restaurants. Read about Swiggy success story, founders, funding, vision, mission, tagline, business model, and more.


    Multimedia Card Insights: Enhanced User Experience

    Providing a better Customer Experience is the way to build long-term trust among customers. Today, companies are doing so many things to enrich the user experience on their platforms. They know very well that a bad user experience will directly lead to a decrease in customer base.

    Swiggy has launched a new innovative multimedia card insights, which is a new way to showcase the product overview. Images and Lottie animations are old; things have changed in this new era. In this new multimedia card, informative videos are used to show the product’s features.


    Sriharsha Majety: Visionary Behind Swiggy
    Discover the inspiring journey of Sriharsha Majety, co-founder and CEO of Swiggy. Learn about his early life, education, and the milestones leading to Swiggy’s success.


    Swiggy Pocket Hero

    Swiggy, the food and grocery delivery service, has introduced a new feature called Pocket Hero. It’s like a money-saving sidekick for users who want to spend smart. It’s being tested in Delhi, giving you extra cashback and discounts of up to 60% on food orders from specific restaurants. You can enjoy these benefits at five places: Pink Box, 34 Chowringhee Lane, Cold Love Ice Cream, The Chai Story, and Chai Chapter.

    “Pockethero aims to make food delivery accessible to a set of users who today may find online food delivery less value for money … Pockethero delivers the best of discounts from our partner restaurants and gives free delivery on top of it to give our customers a taste of convenience without having to think much about their pockets,” said Sidharth Bhakoo, VP, National Business Head at Swiggy.

    Figure Overview: Zomato vs Swiggy

    Zomato Vs Swiggy
    Zomato Vs Swiggy

    Facts Zomato (Eternal Ltd) Swiggy
    Number of Restaurants ~3.14 lakh partners 2.5 lakh+ partners
    Cities Covered 800+ cities 700+ cities
    App Downloads 100 million+ 100 million+
    Number of Employees 7,331 employees 5,401 employees
    Revenue (FY24) INR 7792 crore INR 6082 crore
    Total Funding Raised $3.4 billion $3.8 billion
    Google App Rating 4.7 / 5 4.4 / 5

    Marketing of Zomato

    Zomato’s top-notch marketing strategy always supports its presence in the market. The food delivery industry has never been so interesting, but things have changed now. Let’s have a look at some of the popular marketing of Zomato.

    Zomaland

    Swiggy vs Zomato - Zomaland by Zomato
    Swiggy vs Zomato – Zomaland by Zomato

    Zomaland is a carnival consisting of the best restaurants, powerful performances, amazing attractions, and a plethora of other events, making this a food festival.

    Started in 2019, this food carnival of Zomato became successful by hosting 1.5 lakh+ visitors, 300+ restaurants, and serving more than 3.5 lakh dishes. Many famous artists like Badshah, Hardy Sandhu, Divine, and many more were reported to perform in order to entertain the visitors.

    Now, Zomaland season 2 has arrived with full energy in cities like Pune, Ahmedabad, Mumbai, New Delhi, Kolkata, Bengaluru, and Hyderabad. This marketing event by Zomato is one of the most popular and successful.

    Meme and Creative Marketing

    Swiggy vs Zomato - Zomato Creative Marketing
    Swiggy vs Zomato – Zomato Creative Marketing

    Meme and creative marketing of Zomato are the best in the industry. If you look at the social media handle, you will find so many creative marketing memes that connect with the audience and, interestingly, convey the message.

    While paid advertising is typically a short-term marketing approach, its impact on maintaining engagement cannot be overlooked. Zomato strategically utilizes paid advertising, complementing its organic optimization efforts to enhance brand visibility in search results. The key to Zomato’s advertising lies in audience retention.

    Employing Google Ads, Zomato precisely targets specific customer segments. These paid ads, seamlessly integrated with organic results, enable the brand to reach a broad spectrum of keywords that might be challenging through organic efforts alone. Zomato’s marketing campaigns predominantly involve paid advertisements, serving as a proactive means to connect and sustain engagement with their audience.

    Marketing of Swiggy

    Swiggy UGC - Why is This a Swiggy Ad?
    Zomato vs Swiggy – Why is This a Swiggy Ad?

    The marketing campaign is an integral part of Swiggy; it gives neck-to-neck competition to its biggest rival, Zomato. Swiggy’s recently launched marketing campaign is the best example of it.

    Why is this a Swiggy ad? It is a marketing campaign introduced by Swiggy in which you have to answer, ‘Why is this a Swiggy ad?’ After looking at the picture published by Swiggy.

    This marketing move grabbed the attention of many customers because of the challenge they had given. Swiggy also announced Rupees 1 lakh worth of Swiggy money to the person who gave the right answer.

    Approximately 800,000 people participated online with their theories behind the campaign, making it one of the most successful Swiggy user-generated campaigns. The question “Why is this a Swiggy ad?” was one of the most searched topics on Google that week.

    Email and Social Media Marketing

    Zomato vs Swiggy – Email and Social Media Marketing

    Regularly engaging with its customer base, Swiggy employs dynamic email campaigns featuring captivating graphics, catchy slogans, and irresistible deals. The brand strategically enhances its email content, especially during major events like the Indian Premier League, the World Cup, and the Olympics, entertaining and ensuring relevance and heightened consumer interest during these periods.

    Across various social media platforms, Swiggy maintains a robust presence. Their innovative use of hashtags, such as #EarnYourCheatMeal, #NoOrderTooSmall, and #EatYourVeggies, exemplifies the brand’s creativity in connecting with its audience. Swiggy leverages humor in posts, cleverly weaving current trends into content that entertains and aligns with the company’s services and vision. This multi-faceted approach reflects Swiggy’s commitment to staying dynamic, entertaining, and closely connected to its customers.

    PPC Advertising Strategy

    Swiggy, the big food delivery company, is good at using online ads. They choose specific words (like “food delivery near me”) that people often type when looking for food. They also use catchy phrases for specific cravings, like “midnight chicken delivery.” Swiggy shows its ads to the right people by avoiding words that don’t match, like “homemade food.”

    Their short and clear ads talk about quick delivery and good deals. They create a feeling of urgency, like saying, “Order now!” Swiggy makes ordering easy by designing its website and app to be simple and quick, especially on phones. They even suggest dishes based on what you might like. Swiggy doesn’t use the same ads everywhere; they change them for Google, Facebook, and others, depending on where people are looking. They also test different ads to see what works best and keep improving. Swiggy also does things like reminding people about their orders or making special holiday ads. They work with popular restaurants and influencers to reach more people and make their brand trustworthy.

    Conclusion

    In the competitive landscape of food delivery services, the Swiggy vs Zomato comparison reveals interesting dynamics. Both companies excel in delivering quality food, but Zomato currently holds a stronger position in terms of market share, marketing strategies, innovation, and successful acquisitions. On the flip side, Swiggy takes the lead in prioritizing the well-being of its delivery executives, a crucial factor contributing to heightened consumer satisfaction. Zomato or Swiggy which is better, depends on what you prefer—faster delivery and groceries with Swiggy, or detailed reviews and a fun app with Zomato. The Swiggy vs Zomato debate showcases the nuanced strengths of each, with Zomato dominating certain business aspects while Swiggy takes a commendable lead in ensuring the welfare of its delivery workforce.

    FAQs

    What are the top 3 food delivery apps?

    The top 3 food delivery apps in India are Zomato, Swiggy, and Domino’s.

    Is Swiggy successful in India?

    Yes, Swiggy is considered a successful startup in India. Regardless of its rough path, it has successfully created a great example in the market for other startups to learn from.

    Swiggy or Zomato which is best?

    Choosing between Zomato and Swiggy depends on your priorities. Zomato shines in restaurant discovery and reviews, while Swiggy excels in delivery speed and interface. Ultimately, the “best” depends on what matters most to you: food research or swift delivery.

    Is Swiggy losing to Zomato?

    As for the insights shared by Jefferies, the gross value of Swiggy’s food delivery operation in the first half of 2022 was $1.3 billion, whereas Zomato recorded $1.6 billion of the order value for its food delivery operations. From this, it can be estimated that Swiggy has lagged at several points to Zomato. However, the real winner is still a debatable topic.

    Is Swiggy ahead of Zomato?

    Both companies are fierce in their competition. When we talk about gross value, Swiggy lagged behind Zomato. However, with the acquisition of a quick commerce platform, Blinkit, Swiggy crossed Zomato in the quick commerce space to capture all e-commerce markets and move ahead of Zomato.

  • Zomato Rolls Out Extra Charges for Long-Distance Deliveries

    Zomato, a key player in the foodtech industry, has allegedly begun collecting a new “long-distance service fee” for orders that are delivered more than four kilometres. The company would now charge its clients INR 15 for deliveries within a 4- to 6-kilometre radius if the order value exceeds INR 150, according to a media report that cited people familiar with the situation.

     Depending on the city, the fee for orders over 6 km will range from INR 25 to INR 35. According to the report, the foodtech giant assured its restaurant partners that, excluding other expenses, the total service fees, including this additional distance charge, would not exceed 30%.

    However, according to some eateries, their overall commission fees may reach 45%. The news occurs weeks after the company’s fourth quarter financial results were released, which showed that despite a solid topline growth, its bottomline suffered greatly due to rising competition in the rapid commerce industry and stubbornly high expenses.

    Zomato Realigning its Business Strategies

    While operating revenue soared 64% to INR 5,833 Cr in the quarter under review from INR 3,562 Cr in the previous year, Zomato parent company Eternal’s consolidated profit after tax (PAT) fell 77.8% to INR 39 Cr in Q4 FY25 from INR 175 Cr in the same period last year.

    In an effort to boost its bottom line, the foodtech behemoth founded by Deepinder Goyal is reportedly raising prices and taking away some privileges from its customers and restaurant partners.

    Zomato Also Altering its Gold Membership Benefits

    Zomato recently introduced a significant modification to its Gold membership benefits: starting on May 16, users who were already enrolled in its Gold membership plan will be subject to an extra rain fee.

     The platform cost, which is now INR 10 per order, was previously increased by the corporation four times in the last year alone.

    In light of this, the Competition Commission of India (CCI) declared in April that the foodtech giant’s platform fees, food prices, and delivery fees did not constitute unfair or discriminatory conduct.

    Competition is Getting Tougher as Swiggy Rolls Out New Scheme for Corporates

    To further strengthen its food delivery business, listed foodtech firm Swiggy has established a corporate rewards programme, just days after unveiling a new initiative to attract students.

    The CEO of Swiggy’s food marketplace segment, Rohit Kapoor, stated in a LinkedIn post that the new programme will provide corporate personnel with a number of advantages, such as lower Swiggy One membership costs and order discounts.

    Kapoor went on to say that Swiggy’s new Corporate Rewards programme truly excites him. A wealth of advantages can be accessed with just a basic email verification. Customers can receive at least INR 125 off simply by using their work email, or they can have a Swiggy One subscription that offers unlimited free deliveries for a full quarter.

    Corporate personnel will receive “a minimum of INR 125 off on food orders”, “flat INR 1,000 on top of pre-book offers”, and Swiggy One membership at “INR 30” (with “free” delivery for 3+1 months).

  • Swiggy Rolls Out Corporate Rewards Programme to Woo Corporates

    To further strengthen its food delivery business, listed foodtech firm Swiggy has established a corporate rewards programme, just days after unveiling a new initiative to attract students. The CEO of Swiggy’s food marketplace segment, Rohit Kapoor, stated in a LinkedIn post that the new programme will provide corporate personnel with a number of advantages, such as lower Swiggy One membership costs and order discounts.

    Kapoor went on to say that Swiggy’s new Corporate Rewards programme truly excites him. A wealth of advantages can be accessed with just a basic email verification. Customers can receive at least INR 125 off simply by using their work email, or they can have a Swiggy One subscription that offers unlimited free deliveries for a full quarter.

    Corporate personnel will receive “a minimum of INR 125 off on food orders”, “flat INR 1,000 on top of pre-book offers”, and Swiggy One membership at “INR 30” (with “free” delivery for 3+1 months).

    Swiggy Farming New Business Strategies for Increasing Proceeds

    Kapoor offered the new product to both new hires and “senior managers planning team lunches” in his social media post. Days prior, Swiggy said that it was testing a student rewards programme on 2,000 colleges in more than 200 Indian cities.

    By July 2025, it stated that it intended to extend the programme to over 4,500 universities nationwide. The company’s larger plan to boost membership, make its meal delivery network more appealing, and raise income includes the additional products.

    The rain fee waiver for Swiggy and Zomato’s membership programmes was just discontinued. Earlier this month, the Sriharsha Majety-led company granted exclusive licenses to Bengaluru-based Kouzina Food Tech for its digital-first food brands, which include The Bowl Company (TBC), Homely, Soul Rasa, and Istah, as part of its attempts to streamline operations and reduce losses.

    This came after Swiggy removed these brands from its list because of operational issues. The slowing in the larger food delivery ecosystem is the cause of the new launches and modifications. This has affected Swiggy as well as Zomato.

    Swiggy’s Revenue Taking a Hit Owing to Aggressive Expansion

    The fierce rivalry in the rapid commerce space has made Swiggy’s issues worse. The company’s bottom line has suffered as a result of its aggressive expansion of the Swiggy Instamart dark store network.

     In the fourth quarter of FY25, the fast commerce vertical’s adjusted EBITDA loss increased 45.3% on a quarterly basis to INR 840 Cr. Swiggy’s INR 425 Cr deployment and the addition of 316 new dark stores in Q4 alone—more than the prior eight quarters combined—were the main drivers of this.

    Consequently, Swiggy’s overall net loss in Q4 FY25 soared 95% year over year to INR 1,081.18 Cr. The result has been a decline in Swiggy’s stock price. Last week, the company’s shares fell to an all-time low of INR 297 during intraday trade. On the BSE, the stock has lost about 40% of its value so far this year.

  • Swiggy Hands Over Digital-First Food Brands to Kouzinas in Strategic Move

    In order to secure exclusive licenses for its digital-first food brands, such as The Bowl Company (TBC), Homely, Soul Rasa, and Istah, foodtech giant Swiggy has partnered with Bengaluru-based Kouzina Food Tech. As part of this agreement, Kouzina will use its asset-light, cloud kitchen approach to oversee all facets of these businesses, including operations, innovation, and national expansion.

    Nevertheless, it has been claimed that a few of these brands have been facing operational difficulties. TBC has reportedly been offline in Bengaluru for the past five weeks, according to a media report. The source also stated that Swiggy had briefly delisted the brand internally because of operational problems.

    Even though the deal’s financial details were not made public, Swiggy will give Kouzina complete control of these businesses if they fulfil a number of predetermined requirements.

    Homely is presently available in a few Bengaluru locales, but later this week, TBC will be introduced, according to Gautam Balijepalli, cofounder and CEO of Kouzina. Balijepalli stated, “We’re also getting ready to expand to more cities soon.”

    Reason Behind the Move

    TBC, Swiggy’s largest in-house food brand, was introduced in 2017 and is renowned for its extensive menu. Swiggy was also the operating platform for other cloud kitchen brands, including Homely, Soul Rasa, and Istah.

    However, the need for a brand like TBC seems to have decreased as the restaurant industry changed. These brands were first launched by Swiggy to fill in supply shortages in restaurants and improve customer convenience and diversity. According to Arpit Mathur, vice president of Swiggy, the company’s food brands—The Bowl Company, Homely, and others—were introduced to fill in the shortage of restaurants and satisfy customers’ needs for convenience and variety in food delivery.

     In the end, these brands have helped customers by occupying important market white whitespaces and encouraging restaurant partners to innovate. By licensing these names to Kouzina, Swiggy appears to be leaving the private label market.

     With the National Restaurant Association of India (NRAI) preparing to sue Swiggy and Zomato, the company is coming under fire from the restaurant industry for its private label strategy. In a recent move away from running its own food brands and on core delivery and speedy commerce, Swiggy has shut down its hyperlocal delivery service, Genie.

    Swiggy Now Focussing on Bolt

    The business just announced on 2 May in an exchange filing that it is increasing the scope of its Bolt quick meal delivery program, which is now being extended to more than 500 Indian locations.

    Additionally, according to the firm, Bolt has already powered over 10% of Swiggy’s food delivery orders in less than six months since its launch.

     In the meantime, its competitor Zomato recently closed both its quick commerce play, Zomato Quick, and its quick food delivery vertical, Zomato Everyday.

  • Genie Goes Off Duty: Swiggy Suspends Its Popular Service

    Swiggy Genie, its citywide delivery service, has been suspended. In the majority of places, the Swiggy app does not display the service, which was operational in about 70 Indian towns. A notice stating that the Swiggy Genie service is “temporarily unavailable” appears at a few spots where it is accessible through the app.

     At the moment, Bengaluru, Mumbai, and Delhi NCR do not have access to the service. However, media reports were unable to determine whether it had been suspended in every city where it operated. Swiggy stated that Genie is taking a little hiatus from fulfilling wishes in response to a post on X regarding the withdrawal of Swiggy Genie from the app.

     Although there isn’t a specific timeframe for Genie’s return yet, Swiggy stated that their staff is diligently working behind the scenes to get it back as soon as possible. We’ll be sure to update you as soon as it resumes operations!

    Not the 1st Time for Genie

    In April 2020, Swiggy Genie, a hyperlocal delivery service, was introduced in 30 cities. Since then, the business has extended its immediate pickup and drop-off service to nearly 70 cities nationwide. It’s noteworthy that Swiggy has stopped Swiggy Genie before.

    The foodtech giant suspended operations in Hyderabad, Bengaluru, and Mumbai in 2022. It stated at the time that the company had to give priority to its food marketplace and rapid commerce vertical, Instamart, due to the spike in demand for these services. The most recent development occurs one day after Swiggy declared that more than 500 cities nationwide now offer its 10-minute delivery service, Bolt.

    Intriguingly, Zomato’s fiercest rival Eternal declared earlier this week that it is discontinuing Quick, a 15-minute meal delivery service, at its Q4 results announcement because it failed to generate any more demand during its pilot period.

    Additionally, Zomato said that it will discontinue Zomato Everyday, its home-meal service. On Friday, May 9, Swiggy is scheduled to release its Q4 financial results. Brokers predict that the company’s net loss will soar to INR 927 Cr and that its EBITDA margin will report a 16% sequential fall during the quarter.

    According to JM Financial, Swiggy Instamart’s “aggressive dark store expansion and impact of a high competitive landscape” are to blame for the increase in losses.

    Recent Financial Dynamics of Swiggy

    In Q3 FY25, Swiggy saw a consolidated net loss of INR 799 Cr, up 39% from INR 574 Cr in the same quarter last year. During the quarter, operating revenue soared 31% year over year to INR 3,993 Cr. Strong demand in its primary meal delivery operation and an increase in quick commerce income were the main drivers of this rise.

  • Swiggy Now Offers 10-Minute Food Delivery Service Bolt to More than 500 Cities

    Within seven months of its start, foodtech giant Swiggy has now brought its 10-minute meal delivery service, Bolt, to more than 500 Indian cities. The service, which was previously available in six top-tier cities, has now spread to tier II and III cities.

     “Powered by a network of over 45,000 restaurant brands, Bolt has exploded across metro areas as well as tier II and III towns since its October 2024 launch,” Swiggy said in a statement. Bolt receives more than one order out of every ten food delivery orders placed on Swiggy’s platform.

    Within a 2-kilometre delivery radius, the platform has featured high-demand, quick-serve items with little preparation time on Bolt. Burgers, hot and cold drinks, breakfast foods, and biryani are among the dishes that take the least amount of preparation time.

     Additionally, it offers ready-to-pack snacks, chocolates, and ice cream. Bolt offers a variety of Quick Service Restaurant (QSR) brands, including KFC, McDonald’s, Subway, Faasos, Burger King, and Curefoods.

    According to Rohit Kapoor, CEO of Swiggy Food Marketplace, it has been amazing to watch the company grow to more than 500 cities in a few months. And this is only the start.

    Bolt’s Popularity Forced Swiggy to Expand Business

    The company stated in its statement that Bolt serves as a consumer acquisition mechanism for Swiggy, as the monthly retention of new users acquired through it is 4-6% higher than the average on the platform. When Swiggy Bolt was introduced in 2024, it was available in Bengaluru, Hyderabad, Mumbai, Chennai, Delhi, and Pune.

    In addition to Bolt, the foodtech behemoth launched SNACC, a stand-alone app, in January to provide meals, drinks, and small nibbles in 15 minutes. SNACC, which was first offered in Bengaluru at specific pin codes, is now also delivered in Noida and Gurugram.

    Swiggy says it can deliver a variety of food and drink items through the SNACC app, such as fruit bowls, tea, coffee, breakfast specials, snacks, and cold beverages. Last month, Swiggy launched its professional service marketplace, Pyng, for customers as part of its most recent service growth.

    Pyng is an AI-powered platform that links users with vetted service providers, such as financial advisors, astrologers, travel and education specialists, and health and wellness specialists.

    From Quick Commerce to Quick Food Delivery

    The development occurs at a time when rapid delivery has emerged as a viable segment for both new and emerging foodtech and e-commerce firms. Zepto Cafe, Blinkit’s Bistro, Bengaluru-based firm Swish, Gurugram-based platform Zing, and Rebel Foods’ most recent “QuickiES app” are all located in the rapid meal delivery sector.

    Even while rapid commerce platforms release new services every three months, the user interface of the apps still needs work.

    According to reports, Swiggy and Zepto, two major players in fast commerce, received notices from the Delhi High Court last month regarding their apps’ unpleasant user interfaces for those with visual impairments. By 2030, the fast commerce market in India is expected to have grown to a size of $40 billion.

  • Breaking Down Swiggy’s Marketing Strategy: Innovation, Engagement, Growth

    Swiggy started as a simple service that was just delivering food and has now evolved into a platform that delivers not only food but groceries, essentials, and everything else with a few taps on your phone. Even amidst stiff competition with its largest rival, Zomato, Swiggy has climbed to the top with a staggering 76.35% of the food delivery market in its pocket. But how did it get there? The secret is in its marketing strategy—a mix of innovation, customer focus, and adaptability. 

    Nandan Reddy, Sriharsha Majety, and Rahul Jaimini’s brainchild, Swiggy, has overcome their initial challenges to emerge as a household name in India’s on-demand meal delivery market. Despite facing setbacks with their previous venture, an e-commerce platform for small businesses, the founders recognised the potential of the hyperlocal market, which led to the creation of Swiggy in 2014. 

    The early focus of the company on building a strong logistical network and forging valuable partnerships helped the company begin with just six delivery boys and 25 restaurant partners, overcoming the initial hurdle of getting eateries to adopt the service.

    Swiggy quickly adapted to the growing demand for on-demand food delivery, and by 2015, it expanded its operations and raised funds of $80 million to fuel its growth. Swiggy’s investment allowed them to expand their reach and operations and connect with over 200,000 partner restaurants in 500 cities across India. In 2024, Swiggy was valued at $11.5 billion and was one of India’s leading meal delivery services.

    Swiggy Target Audience
    Swiggy’s Marketing Mix
    Swiggy Marketing Strategy
    Swiggy Marketing Campaigns

    Swiggy Target Audience

    Swiggy Target Market
    Swiggy Target Market

    Though this is Swiggy’s primary audience, the demographic it targets stretches much further. The platform is for people aged from 18 to over 55 years old, without restrictions on profession, demographic area, or interest. Swiggy delivers to anyone who doesn’t want to cook or is unable to, from college students who can’t cook on their own to families who want to avoid cooking on busy days.

    Swiggy’s ecosystem is not just about its customer base but also aims at restaurants as key partners. Swiggy’s network consists of these eateries, from small local joints to large chains. Through becoming delivery partners, restaurants use Swiggy’s large audience, while Swiggy makes sure that its customers receive a seamless delivery experience.


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    Swiggy is a food delivery application. It allows the users to access their application from Android, IOS, and website, to order food from nearby restaurants. Read about Swiggy success story, founders, funding, vision, mission, tagline, business model, and more.


    Swiggy’s Marketing Mix

    Swiggy Marketing Mix
    Swiggy Marketing Mix

    With its innovative services, customer-centric approach, and great user experience, Swiggy has transformed India’s food delivery market. In creating a well-rounded marketing mix, Swiggy has not only satisfied the changing needs of consumers but also set standards of excellence for the competitive food tech industry.

    Product

    At Swiggy’s core, online food ordering and delivery bring customers to their favourite restaurants. Swiggy’s innovation doesn’t stop here. Instamart, which is a grocery delivery service with lightning-fast delivery times, has only further solidified its place as a market leader.

    Swiggy Go is an express delivery service for non-food items, and Swiggy Stores is a one-stop shop for daily essentials for customers with diverse needs. The company also gives Swiggy Money as a digital wallet for easy transactions. Swiggy Super (now rebranded as Swiggy One) goes a step further by dedicating its subscription service to elevating customer loyalty to new heights by providing free deliveries, exclusive discounts, and faster service, amongst other perks.

    With Swiggy Fresh, Swiggy is focused on fresh produce, and Swiggy Access Kitchens help restaurant partners gain access to rent-free, fully equipped kitchens in underserved areas. The Swiggy Ads platform allows for precise targeting of audiences for businesses, which proves to be a win-win for all stakeholders.

    Price

    Dynamic pricing strategies help Swiggy strike the perfect balance between affordability and value. Factors such as demand, competition, and delivery distance affect the platform’s pricing, providing customers with the best value. Customers are kept engaged with a lot of frequent discounts, cashback incentives, and exclusive deals that can be availed of by using specific payment methods.

    Place

    Accessibility and convenience are what their place strategy revolves around. Established across India, Swiggy’s operation spans more than 500 Indian cities, and it has more than 150,000 restaurants as part of its partnerships. Customers can order, track, and pay with their user-friendly app and website.

    Hot and fresh deliveries to doorsteps and pick-up options from restaurants are guaranteed by Swiggy’s delivery partners’ fleet. Swiggy is not just diversifying into new markets by delivering groceries, medicines, flowers, and gifts, but also expanding its footprint in the Indian delivery ecosystem beyond food.

    Promotion

    The promotional strategies of Swiggy focus on making the brand more relatable by executing creative and relatable campaigns. It stands out in terms of its social media presence, with platforms like Instagram, Facebook, and YouTube, which are full of funny and engaging content. #SuperSwiggy and #SwiggyIndia are campaigns that have catchy one-liners and puns that can be related to audiences.


    Sriharsha Majety: Visionary Behind Swiggy
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    Swiggy Marketing Strategy

    India’s leading food delivery service, Swiggy, has set a path with a marketing blueprint that is both innovative and effective in reaching out to a huge audience. Swiggy has been able to lead the market by leveraging digital platforms and engaging with customers across multiple touchpoints, and has garnered a lot of traffic from various sources. Swiggy’s go-to-market strategy focused on launching in major metro cities with a strong hyperlocal delivery model. It quickly built a reliable fleet for last-mile logistics and partnered with popular restaurants to attract users. Below are the marketing strategy of Swiggy employed by the leading food aggregator in India:

    Swiggy SEO Strategy

    On-page and off-page SEO is what Swiggy focuses on to improve the visibility of its website on search engines. SEO-friendly elements like H1 and H2 tags like “Hungry?” (H1) and “Order food from your favourite restaurants near you” (H2) make the website SEO-friendly so Google can understand what’s on the page. 

    Keyword research, interlinking, titles, and alt tags are used well by Swiggy to improve its search ranking. Though the backlinking is not very good, Swiggy still ranks well in the Search Engine Results Pages (SERPs) and is very visible.

    Swiggy Social Media Marketing Strategy

    Swiggy Social Media
    Swiggy Social Media

    Social media has been masterfully leveraged by Swiggy to connect with its millennial audience on platforms such as Instagram and Twitter. Its Instagram account has over 300K followers and is a mix of witty, topical, and relatable posts that are often designed to entertain as much as they promote food delivery. 

    Their post about the mysterious monoliths that popped up worldwide in December 2020 is a prime example. But Swiggy used the trend to its advantage and linked it to a sweet Indian dessert to get over 9,000 likes.

    Apart from being quick on trends, Swiggy is also known for campaigns that promote user interaction. Their most successful campaign was the #SwiggyVoiceOfHunger challenge, where people using Instagram’s voice note feature stood a chance to win food vouchers for the year. 

    As a result of this campaign, they saw a 40% increase in followers and a 2,100% increase in traffic. To keep its brand relatable and memorable, Swiggy encourages user-generated content and works with fun, shareable content.

    Paid search engine marketing is a huge investment for Swiggy to drive traffic to their site and increase their visibility. The keyword ‘Swiggy’ is searched 1.83 million times per month, and Swiggy pays more per click ($0.20) than its rival Zomato ($0.11), according to SEMrush

    So despite the cost, Swiggy’s paid Google ads are working, pulling in a ton of traffic to its platform. The Swiggy website has 4.3 million unique visitors, and paid search ads account for around 3.95% of the traffic, an increase of 9% over the previous year. With this SEM strategy, Swiggy always stays in front of users actively searching for food delivery options.

    Email Marketing

    Another strong pillar of its digital marketing is Swiggy’s email marketing. Swiggy achieved a CTR of 7% and an open rate of 25% in 2019, which are both very high compared to the average industry rate. In order to improve the effectiveness of its emails, Swiggy teamed up with Netcore Cloud, using AI to power marketing automation. 

    By working together, Swiggy was able to send emails directly to the primary inboxes of Gmail users, so their promotions and offers didn’t end up in spam folders. In addition to crafting compelling subject lines, concise titles, and strong CTAs to entice recipients to engage with the content, the brand also frequently includes coupons or exclusive deals.

    Meme Marketing

    With meme marketing, Swiggy has redefined the digital marketing landscape and proved how humour and timely cultural references can help in building impactful brand engagement. In a time when brands are competing to get noticed, Swiggy has managed a unique and effective way to stand out, staying on top of trending topics and making relevant memes for their audience.

    Staying relevant and adding its twist to real-time events is one of the key strategies that sets Swiggy apart, and often it’s done through clever memes. One such example is how Swiggy reacted to the farmers’ protest in India. Rather than avoiding difficult or delicate topics, Swiggy leaped in with a well-thought-out and humorous response that is exactly the type of thing you want from a company that can comment intelligently during tense times.

    Swiggy’s meme marketing is simple and relevant, and that’s its power. The way it speaks is very much directed at younger audiences, in particular millennials and Gen Z, who are willing to accept authenticity and wit. Swiggy knows that memes are a part of everyday communication and has used them to fuel its social media presence.

    TV Advertising

    Swiggy’s “Why Is This A Swiggy Ad?” shows the brand’s capacity to enthrall audiences with creativity and innovation through a campaign. The campaign, launched in October, disrupted traditional TV ad formats by using an intriguing question that immediately caught attention: “Why Is This A Swiggy Ad?” It wasn’t just an advertisement; it was a puzzle, a conversation starter, and a channel to involve the audience through user-generated content (UGC).

    A strong TV presence backed the campaign, with ads running in prime time slots, many of them featuring mysterious images and questions that would intrigue. The use of social media and print brought viewers to a dedicated website, ‘whyisthisaswiggyad.com’, where they could go even deeper into the mystery and share their theories. Swiggy’s TV ads were carefully placed on relevant shows that were popular with their target demographic, young, urban audiences.

    In-App Advertising

    With in-app advertising, restaurants find that they can get more visibility. For instance, users might see sponsored restaurant listings up front on the app’s search results, which will then give featured restaurants more visibility. 

    The ‘Swiggy Pop program’ is a noteworthy feature that displays one item meal at an affordable price in the most prominent section of the app, thus increasing the click-through rates. Restaurants can use these promotions to drive conversions by targeting users based on their preferences and behaviour.

    Swiggy Marketing Campaigns

    WhatsInAName Campaign

    #WhatsInAName Campaign

    The #WhatsInAName campaign by Swiggy was a heartwarming success as it encouraged people to remember their delivery partners by their names. By showcasing the personal stories of delivery partners and the need to acknowledge their uniqueness, the campaign resonated with millions of Indians and helped foster respect and empathy.

    Voice of Hunger

    The creative campaign utilised Instagram’s audio note feature in a fun way. Users were challenged to create sound waveforms in the shape of different food items and send them to the brand via direct message on Swiggy. The brand rewarded participants who completed the challenge with a year’s worth of food vouchers. The campaign was a huge success, and Swiggy got more than 10,000 entries per day.

    Swiggy “Karo Phir Jo Chahe Karo”

    “Karo Phir Jo Chahe Karo” Campaign

    This witty campaign was launched during IPL 2018, and the storyline was simple yet relatable. A man orders just one piece of gulab jamun in a 20-second ad and eats it secretly from his wife. Swiggy’s ad promised to deliver even the smallest orders with convenience, without any complex dialogues. The minimalistic, but charming, approach hit a chord with audiences.

    Why Is This A Swiggy Ad?

    Why Is This A Swiggy Ad?

    “Why Is This A Swiggy Ad?” was a genius user-led campaign that flipped traditional advertising on its head. What started as one mysterious image sparked massive curiosity, making Gen Z and millennials stop scrolling and start talking. Swiggy launched it across billboards, newspapers, and social media—drawing nearly 800,000 responses, wild theories, livestreams, and debates.


    Behind the Scenes: How Swiggy Runs and Earns | Swiggy Business Model | How Does Swiggy Make Money
    Swiggy is one of the top food aggregators in India. Let’s have an insight into its business model and revenue model to understand the reason behind its success.


    Conclusion

    It was Swiggy’s marketing strategy that has been the force behind its success in the food delivery space in India. Swiggy has successfully managed to provide for the changing needs of its customers by combining innovation, customer focus, and adaptability.

    FAQs

    What is Swiggy’s marketing strategy?

    The key marketing strategies of Swiggy include SEO strategy, social media strategy, Paid Search Engine Marketing Strategy, Email Marketing, Meme Marketing, and TV Advertising, In-App Advertising.

    What made Swiggy successful?

    Swiggy is committed towards its delivery partners, and for any delivery business, the most important part of their ventures is the delivery partners. The importance of fair rights towards delivery partners, when combined with other factors such as innovation and a customer-centric approach, play a huge role in the success of Swiggy. 

    What is the aim of Swiggy?

    Swiggy aims to elevate the quality of life of urban consumers by providing them with convenience, which can be experienced with just a click. 

  • Behind the Scenes: How Swiggy Runs and Earns | Swiggy Business Model | How Does Swiggy Make Money

    The business of restaurants and cafes has taken on a new form thanks to the online meal delivery service. Customers now have access to an enormous array of options in addition to improved connections to regional and global food chains thanks to this system. At the moment, Swiggy and Zomato are the two industry titans; while numerous other businesses attempted their hand at this market, they were unable to compete with these titans. In addition to being the biggest online food ordering and delivery service in India, Swiggy is also the number one unicorn startup in the country. Since its launch in August 2014, it has more than five lakh app installations, partnerships with over 1,50,000 restaurants, and has a strong presence in more than 325 cities across India.

    Swiggy pioneered quick pick-and-drop meal delivery services to ease people’s lives. It provides a single window for placing orders from a wide selection of restaurants and a complete meal ordering and delivery system that links local restaurants with food enthusiasts.

    They have revolutionised and broken all barriers pertaining to food delivery. From a time when we had to travel, order, and wait to get our favourite food parcelled, today we have grown so much through apps like Swiggy to have high favourite delicacies delivered right in front of our doors. This article will look into the business model that has helped Swiggy gain a place in the market.

    Through this article, we will understand the whole ecosystem of Swiggy’s business, right from what business model it follows to how it makes money, we will put a magnifying glass on each of its developments.

    About Swiggy

    The Bangalore-based business Swiggy was founded in 2014 and has already spread to over 100 Indian cities. Swiggy, which was founded by Rahul Jaimini, Nandan Reddy, and Sriharsha Majety, has a vast national business network. As food ordering and delivery giants, they are currently expanding their digital presence by introducing a variety of platforms and expanding their services in response to circumstances such as “when you prefer not to dine out, they bring the restaurant to you.” In the ongoing competition between Swiggy and Zomato, the app’s features are consistently attracting customers to place orders with Swiggy. Customers may keep tabs on their orders, get real-time updates, talk to customer service, pay with cash on delivery, find incredible bargains, and so on. People from the working class and students love Swiggy because they don’t have much time to cook for themselves.

    For example, Swiggy Pop is a 30-35-minute meal delivery service for a single serving. Swiggy offers a variety of products and services to its customers. The Swiggy POP menu offers several dishes such as Asian combos, burgers, bowl meals, biryanis, and Indian thalis. All single-serve meals priced between Rs 99 and Rs 200 will be delivered quickly.


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    Swiggy Business Model

    While Swiggy’s primary revenue generator is its commission model, the company does have other verticals that contribute to its success. It uses cutting-edge methods and technology to meet the market’s increasing need for foodies. In addition to being a model of efficient and effective customer service, it also follows all the latest trends in the restaurant industry.

    It connects establishments with customers who are looking to eat. It runs well on a dual partnership basis, which is good news for eateries and grocery shops that want to use the platform for food delivery.

    Swiggy’s business model focuses on localized, on-demand meal delivery. In addition to connecting eateries, it coordinates a network of delivery partners to provide customers with their meals whenever they want them (within 30 minutes).

    Similar to Uber, Bundl Technologies Private Limited built this unicorn startup’s business model around a dual partnership arrangement.

    Cooperating Restaurants: Restaurant partners are businesses that have agreed to deliver to Swiggy app and website users.

    Collaboration with Delivery Partners: Individuals in the delivery fleet are in charge of picking up the order from the partner restaurant and delivering it to the final customer.

    Swiggy’s entire business ecosystem runs on commission, delivery charges, subscriptions, restaurants, and cloud kitchens.


    Sriharsha Majety: Visionary Behind Swiggy
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    Business Model Canvas of Swiggy

    Swiggy Business Model Canvas
    Swiggy Business Model Canvas

    Let’s understand the Business Model of Swiggy in detail:

    Key Partners of Swiggy

    • The major partners that drive Swiggy forward are the restaurants and shops that sign up to have their enterprise enter into food delivery services.
    • Other than eateries, Swiggy also partnered with pharmacies, groceries, et cetera through their platform. Today, Swiggy Mart is a very important part of the company.
    • Recently, they had also partnered with Instagram to allow users to use Instagram’s food order stickers in their stories. These stickers will help the viewers of such stories to order similar things from Swiggy.

    Key Activities of Swiggy

    • The most important activity that Swiggy has to undertake is to acquire customers and manage their orders in real-time. This is accompanied by handling delivery and payment processes simultaneously.
    • Having a very efficient partnership with retail shops, restaurants, and other eateries is an unavoidable part of Swiggy. Swiggy Go fulfills another important activity of pick-up and delivery as well.
    • Having a sound technical system is a very important part of Swiggy since multiple aspects need to be addressed at the same time while an order is being placed.
    • Management of these technical operations, maintaining an efficient IT infrastructure, and proper updation of the system are other important activities of Swiggy.

    Key Resources of Swiggy

    • The key resources of Swiggy are the local partners like Keventers, Yogidthaan, and Biriyani Blues tea, which are bestsellers in the cities.
    • Delivery providers and technology providers are other key resources of Swiggy, which have played a very significant role in strengthening its system.
    • The resources of Swiggy are expanding as it continues to reach out to more places and more untapped markets.

    Value Proposition of Swiggy

    • Swiggy’s policy of no restriction is one of the main value propositions of the firm.
    • It also has a very robust online payment system, which has made the entire food ordering journey easier for the customers.
    • The no minimum order policy has also helped in reaching up to 14 million orders per month, while many orders amounted to less than a hundred rupees.
    • The Swiggy app’s other main value proposition is that it has given its platform to restaurants and stores to use.
    • It has helped both Swiggy and its partners to save more than 30% of their operational costs.
    • Recently, they also launched Swiggy Go, wherein they offer instant pick-up and drop services, which can be utilized by customers to send any kind of packages, documents, parcels, or even tiffin.
    • They also have digital wallets by partnering with companies like PhonePe, Paytm, FreeCharge, etc.

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    Customer Relationship of Swiggy

    • Swiggy, being an expanding company, needs to have a very efficient customer relationship to ensure long-term growth. Hence, it has active customer support at the perusal of user.
    • Apart from a 24*7 telephonic system, they also have chat services.
    • Being active on social media, customers can also send messages to Swiggy’s social media pages, where they usually reply promptly.
    • It also allows you to rate the places and food delivered by Swiggy.

    Channels of Swiggy

    • Swiggy can be accessed in multiple ways. Various channels on Swiggy include their mobile apps and websites, which are available on both Android and iOS.
    • Their recent additions to Swiggy Stores and Swiggy Go are the new channels of the firm.

    Customer Segment of Swiggy

    • The people who prefer dining in their own homes but do not want to cook their own food are the main customer segment of Swiggy.
    • From the people who wanted food to be delivered at their doorsteps being principal customers, we can see a shift to the people who not only want food delivered but also things like groceries, gifts, flowers, medicines, etc, coming into the central stage of customer segments.

    Cost Structure of Swiggy

    • Swiggy also has to incur a lot of expenditure daily to ensure the proper functioning of the app and websites.
    • They have to incur the expenses of their employees and delivery partners. This is apart from the 2 or 3% commission that Swiggy gives to restaurants that partner with them.
    • They also have to bear the cost of website and app development, along with maintenance charges.
    • Advertisements, marketing, and administration create huge expenses as well. Swiggy also has to bear the cost of other miscellaneous expenses, including returns and refunds.

    How Swiggy Makes Money | Swiggy Revenue Model

    Swiggy Financials 2024

    Swiggy Financials FY23 FY24
    Operating Revenue INR 8265 crore INR 11247 crore
    Total Expenditure INR 12884 crore INR 13947 crore
    Procurement Costs INR 3381 crore INR 4604 crore
    Employee Benefit Expense INR 2130 crore INR 2012 crore
    Advertising Expense INR 2501 crore INR 1851 crore
    Delivery & Related Charges INR 1694 crore INR 1637 crore
    Net Loss/Profit INR -4179 crore INR -2350 crore
    Swiggy Financials FY24
    Swiggy Financials FY24

    Swiggy reported a 36% rise in operating revenue to INR 11,247 crore in FY24 ahead of its IPO and reduced its losses by 44% to INR 2,350 crore. Swiggy’s total expenses rose from INR 12,884 crore in FY23 to INR 13,947 crore in FY24.

    Swiggy was an early player in the Indian food delivery market because of its innovative business approach, which has allowed it to diversify its revenue streams and become a market leader. Upon analyzing the activities of Swiggy over the years, one can observe that their revenue streams are increasing. This is indicative of the company’s very stable and long-term growth. The pandemic restrictions on dine-in services have further helped Swiggy to get the extra push it needed. Below are the Swiggy revenue streams through which the company earns and runs.

    Delivery Charges

    Since there is no minimum order amount for delivery on Swiggy, the app frequently receives orders below Rs 100. Owing to this, the logistics cost of such orders increases. Therefore, as Swiggy established a dominant position in the market, it began charging delivery fees for small orders, the exact amount of which varied by city. Customers are Swiggy’s primary source of revenue. If a customer’s order total is less than Rs. 250, the business will charge them for delivery. The fee for each order ranges from twenty to forty rupees.

    Commission

    Another significant portion of the income comes from commissions, which Swiggy gets. In exchange for delivering restaurants’ food orders through the Swiggy app and generating sales leads, it receives commissions from such eateries. Every order placed through Swiggy’s site costs a 15% to 25% fee for restaurants. Restaurants receive perks on this account, such as more exposure and, on occasion, a 2% to 3% reduction in commission.

    Swiggy also uses many methods to earn money from advertisements. It displays advertisements for a variety of restaurants on its application and charges a fee to promote them in multiple regions. On top of that, Swiggy charges certain establishments a premium to have their names shown higher on the app’s list of available places to eat. Banner ads and priority restaurant listings were the two main ways that Swiggy began to commercialize its platform. Following in the footsteps of Zomato and Foodpanda, Swiggy has just begun using banner ads. Their website and app feature regionally specific restaurant promotions and listings. The pricing for different regions on the displayed page varies according to the restaurant’s desired level of visibility through the banner ad.

    Swiggy Access

    Just lately, Swiggy debuted Swiggy Access, a facility similar to a central kitchen base that holds the kitchens of several restaurants, including Swiggy’s own labels. Restaurants will be able to set up kitchens in locations even when they’re not physically there, thanks to this cloud kitchen business concept. From its humble beginnings in Bangalore, the chain has grown to include 36 kitchens across 30 locations in Hyderabad, Kolkata, Delhi, and Mumbai.

    Table Reservations

    Swiggy has made partnerships with several high-end restaurants. When customers reserve a table at one of these restaurants, Swiggy charges a commission to the restaurant. Additionally, customers are required to pay a nominal booking fee to Swiggy.


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    Quick Commerce

    Through its Swiggy Instamart app, Swiggy has recently expanded into the online grocery delivery area. The company operates this business through its delivery partners and has established partnerships with numerous grocery retailers. The company retains a commission on each order from the grocery store, while the client is charged with delivery and handling fees.

    Swiggy Super

    A new membership program called Swiggy Super has just been introduced by Swiggy. Swiggy does not impose surge pricing, requiring the consumer to pay a set amount, and offers limitless free delivery on orders above Rs 99. An introductory price of Rs 49 for a one-month membership and Rs 129 for a three-month membership are the two available alternatives, with the former costing Rs 149 and the latter Rs 349.

    Swiggy Go

    Swiggy, a frontrunner in the delivery space, uses “Swiggy Go” as an income generator. With its 2019 launch, it provides clients with an immediate pick-up and drop-off service. The service enables users to select, send, and drop anything from and to numerous locations throughout geographies, and the corporation earns a significant amount from it.

    Financial institutions like ICICI Bank, HSBC, and Citibank are some of Swiggy’s business partners. Affiliate marketing is a relatively new but very effective revenue stream, and it works for everyone involved. The meal delivery giant has gotten an advantage over competing models thanks to its innovative features and outstanding customer service. With its top-notch service, it has expanded its clientele.

    How Does Swiggy Make Money?
    How Does Swiggy Make Money?

    USP of Swiggy

    Delivery in a timely way and the absence of a minimum order requirement are Swiggy’s primary points of differentiation.

    Swiggy SWOT Analysis

    SWOT Analysis of Swiggy
    SWOT Analysis of Swiggy

    Swiggy Strengths

    • The speed of Swiggy’s delivery is one of the reasons for its fame.
    • Swiggy has been an excellent p user-friendly platform for consumers to place orders.
    • The brand’s extensive range and the variety of nearby restaurants are two more of its strengths.

    Swiggy Weaknesses

    • Swiggy will only take orders from establishments that are physically close to the consumer. However, to satisfy their clients, many competitors expand their territory.
    • Customers’ overall bills are increased by Swiggy’s specific packing and delivery expenses.

    Swiggy Opportunities

    • To gain a larger portion of the market, the corporation can rebrand itself more frequently.
    • Additionally, the organization may capitalize on cities in which it does not have a presence.

    Swiggy Threats

    • Zomato, another big player in this industry, is a direct competitor to the corporation. Since Zomato is a major player, it has the potential to offer substantial discounts to clients in the future, drawing them away from Swiggy.
    • People nowadays are more health-conscious than ever before, and as a result, they prefer to cook their meals at home rather than ordering from out.

    Swiggy’s Marketing Strategy Unveiled | Marketing Mix | Target Market | SEO Strategy | Social Media Strategy
    Discover how Swiggy’s innovative marketing strategy and customer-centric approach make it India’s top choice for online food and grocery delivery.


    Conclusion

    Swiggy’s growth over time has been phenomenal. It aims to raise more funds to strengthen and expand its services to more places. Despite being a latecomer in the industry, Swiggy was able to gain its deserved position through strategic planning and stable expansion.

    Swiggy is doing a fantastic job of satisfying its consumers’ appetites, and it has complemented this with a well-thought-out business plan. This venture is poised for massive growth in the years to come if it continues at its current rate. Even though it’s in a head-to-head competition with another giant named Zomato, Swiggy has a critical advantage that will determine its fate.

    FAQ

    Who is the founder of Swiggy?

    Swiggy was founded by Nandan Reddy, Sriharsha Majety, Rahul Jaimini in 2014.

    How much Commission does Swiggy charges?

    Swiggy charges 22-25 per cent on order value from their restaurant partners.

    What is the business model of Swiggy?

    Swiggy’s business model is a hyperlocal food delivery platform. It connects customers with nearby restaurants through its app and website, charges restaurants a commission fee on each order, and collects delivery fees from customers. It also earns from ads and subscription plans like Swiggy One.

    What is the revenue model of Swiggy?

    Swiggy’s revenue model is multi-channel. It earns money mainly by charging a commission fee from restaurants on each order placed through its platform. It also collects delivery charges from customers, especially during peak hours or for long distances. Swiggy earns through advertisements by promoting restaurants on its app and website, and from subscription plans like Swiggy One, which offer users free deliveries and other benefits for a fee. Additionally, it has expanded into grocery and quick commerce (Instamart), adding new revenue streams.

    How does Swiggy dineout make money?

    Swiggy Dineout makes money by charging commission fees from partner restaurants for every table booking or dining bill paid through its platform. It also earns through subscription plans like Gourmet Passport, which offer users discounts. Additionally, it generates revenue from promotional listings and ads for restaurants.

  • Swiggy and Zepto Received Notices from HC for Unfriendly Apps for Visually Impaired

    According to reports, the Delhi High Court (HC) has sent notifications to Zepto and Swiggy. This notice has been sent as their respective applications’ complicated user interfaces for those with visual impairments.

    The HC made the ruling after a hearing on a petition submitted by the non-governmental organisation Mission Accessibility. Justice Sachin Datta gave the Ministry of Electronics and Information Technology (MeitY) and both platforms four weeks to reply.

    The petition, spearheaded by accessibility advocate Amar Jain, contends that both platforms have not guaranteed compatibility with screen-reader software in spite of legislative requirements under the Rights of Persons with Disabilities (RPwD) Act, 2016. According to the petition, visually challenged individuals are unable to browse products or place orders on the two sites on their own because screen reader software is not included.

     The argument contends that these apps’ inaccessibility denies people with disabilities (PwDs) equitable access to basic services like grocery shopping and meal delivery. Hence, infringing on their constitutional rights. The next hearing on the case has been set for May 28 by the court.

    Rapido Also Navigating in Same Waters

    This comes after a comparable incident with the unicorn ride-hailing service Rapido. In September 2024, while considering a plea filed by Jain and visually challenged banker Dipto Ghosh Chaudhary, the Delhi High Court ordered Rapido to provide an accessibility audit and compliance report within three months.

     Users with disabilities encountered challenges in accessing services due to Rapido’s app’s lack of compatibility with screen-reading software, as emphasised in the petition. Rapido responded by promising to update its software within six to eight months to comply with accessibility guidelines.

    Rapido Failed to Fix the issue

    The high court voiced its displeasure with Rapido’s progress during a March hearing. The ride-hailing app was given a four-month deadline by the court to address accessibility concerns or “pack up from India”.

    The judge also asked how Rapido was permitted to operate without adhering to current handicap access legislation during the hearing.

    Rapido’s audit report, which was presented to the High Court, identified 81 significant accessibility failures and 170 accessibility problems at Level A of the fundamental Web Content Accessibility Guidelines (WCAG).

     Notably, both cases highlight the growing judicial scrutiny of Indian internet companies for not adhering to digital accessibility requirements set forth by Indian legislation, specifically the RPwD Act of 2016.

  • Rakesh Ranjan, Head of Zomato’s Food Delivery Division, Resigns

    According to a media report, Rakesh Ranjan, the CEO of Zomato‘s meal delivery company, will be leaving his current role. As per the published news, Deepinder Goyal, the creator and group CEO of Zomato, would oversee food delivery operations in the upcoming months.

     Rakesh Ranjan will undoubtedly stay with the company and not be leaving. According to the report, this was a component of the company’s biannual leadership reorganisation.

    As part of the company’s continuous attempts to maximise organisational effectiveness, Zomato’s spokeswoman said that internal reorganisation of the executive team is seen as a routine practice at Eternal Group.

    Food Delivery Sector Witnessing a Meltdown

    Although Zomato regularly restructures its leadership, the management shift coincides with a slowdown in the larger food delivery sector. According to Rakesh Ranjan, the food delivery industry is currently seeing a widespread downturn in demand that began in the second half of November.

     In his January 20 shareholder letter detailing the company’s quarterly results, he made this announcement. Ranjan has worked at the Gurugram-based company for almost eight years, having been appointed CEO in June 2023.

     Zomato was already leading the market when Ranjan took over, but throughout the previous few months, it increased its advantage. However, the meal delivery industry is still developing since there is still no obvious leader, and Swiggy and Zomato’s market shares fluctuate periodically.

    Not just Zomato, the industry leader in meal delivery, is seeing a slowdown. In line with peers, Swiggy, its rival, has also experienced a downturn.

    Major Changes in Leadership at Zomato

    Zomato has made two significant leadership changes in its meal delivery company in the midst of a slower market and some market share erosion.

    Rakesh Ranjan has been replaced as the unit’s CEO by Deepinder Goyal, and earlier this month, Rinshul Chandra resigned as the chief operational officer (food delivery).

    Delhi HC Notifies Zomato and CCI

    As part of an ongoing antitrust probe against the foodtech giant, the Delhi High Court (HC) has sent notice to Zomato and the Competition Commission of India (CCI).

    According to reports, the HC made the rulings at a hearing on a plea against the National Restaurant Association of India’s (NRAI) exclusion from the confidential ring during the investigation. The HC was also urged by the NRAI to examine the company’s confidentiality claims.

    The confidential ring was first introduced in 2022 and gives parties access to private documents or information about other parties in an inquiry so they can better defend themselves.

    The confidentiality ring aids regulators in quickly resolving complaints, subject to specific riders. Exclusion from the ring inhibits a petitioner’s capacity to make a defence.

    It is important to remember that in October 2024, the competition watchdog removed the NRAI from the ring after it had been first included.

    At the hearing on 21 April, Zomato’s lawyer allegedly argued that the NRAI should not be included in the confidential ring because it included companies that are competitors of the foodtech juggernaut.