GL Bajaj Institute of Management & Research

Approved by A.I.C.T.E., Ministry of HRD, Govt. of India

Plot No. 2, Knowledge Park III, Greater Noida
Email: director@glbimr.org; Website: www.glnimr.org

MINOR PROJECT REPORT

On

swiggy

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF

THE

DEGREE OF POST GRADUATE DIPLOMA IN MANAGEMENT

Term1

2019-21

Project Guide By: Submitted By:

Ms. Arpana Kumari Anshul kushwaha
Adm. No. : PGDM 19239
Roll No : GM 19030

Swiggy Report Page 1

 STUDENT UNDERTAKING

This is to certify that I have completed the Project titled MICRO

ANALYSIS OF SWIGGY in under the guidance Ms. ARPANA KUMARI
in partial fulfilment of the requirement for the award of degree of Post
Graduate Diploma in Management at GL Bajaj Institute of Management &
Research, Greater Noida. This is an original piece of work & I have not
submitted it earlier elsewhere.

Name of the Student

ANSHUL KUSWHAHA

SEC (D)

PGDM 1st Trimester

Swiggy Report Page 2

 ACKNOWLEDGEMENT

My project would be incomplete if at this juncture, I did not acknowledge

those who steered my project work in the right direction.
First of all I would like to Ms. ARPANA KUMARI as she proved to be
constant source of inspiration and provided timely support at crucial stages of
this project work despite the time and work constraints.
The feeling of gratitude when expressed in words is only a fraction of
acknowledgement. I feel overwhelmed to express my gratitude to all those
who extended their consistent support, guidance and encouragement to
complete this task.
Last but not the least I would like to thanks Dr. Ajay kumar (Director
General, GLBIMR), for providing me with all the help and advice to me in
completing my project.

ANSHUL KUSHWAHA

(Gl Bajaj Institute of Management & Research)

PGDM 1st Trimester
Admission No. PGDM19239
Roll No. GM19030

Swiggy Report Page 3

 TABLE OF CONTENT

 INTRODUCTION
 MARKET SHARE AND POSITION OF COMPANY IN
THE INDUSTRY
 PESTLE ANANLYSIS
 SWOT ANALYSIS
 FINDING
 RECOMMENDATION
 REFERENCES
 EXECUTIVE SUMMARY

Swiggy Report Page 4

 Chapter 1

Swiggy Report Page 5

 INTRODUCTION OF SWIGGY

Swiggy is food ordering and delivering company based in Bangalore. It

provides a single window for ordering from a wide range of restaurants and
have their own exclusive fleet of delivery personnel pick up orders from
restaurants and deliver it to customers.It is a complete food ordering and
delivery solution that connects neighbourhood restaurants with urban foodies.

Founded in 2014, swiggy started small, delivering food to a few

neighbourhoods in bengaluru, india. As the company grew, the team wanted a
mapping technology that could help expand the service throughout india.
Swiggy needed a scalable mapping platform that covered a wide geographic
area and offered tools to help the company to build an efficient mobile app
and website for customers and delivery staff.

Swiggy is a leading food ordering and delivery startup in India. The company
started operations in 2014 and is headquartered in Bengaluru. Swiggy works
by acting as a bridge between customers and restaurants. It utilizes an
innovative technology platform that allows customers to order food from
nearby restaurants and get it delivered at their doorstep. With Swiggy,
customers do not have to keep the contact numbers of various restaurants and
eateries in their locality. Swiggy works as a single point of contact for
ordering food from all restaurants that may be there at a particular

Swiggy Report Page 6

location. Swiggy has its own team of delivery professionals who pickup
orders from restaurants and deliver it at the customer's doorstep. This has
made the task

of ordering food a lot easier for customers. Restaurants also gain by getting
more orders and avoiding costs and efforts associated with maintaining their
own delivery personnel.

History:

The idea for Swiggy came in 2014, when the founders realized that there was
a huge gap in the food ordering and delivery space. Restaurants often faced
manpower problems and their delivery personnel were also not trained to
deliver food in time. Swiggy started as a small setup in August 2014, with a
team of six delivery personnel and covering 25 restaurants. However, the idea
soon became a huge hit among customers and restaurants alike. Swiggy now
has operations in 8 cities and more than 10,000 restaurants on its platform.

About the Founders:

Swiggy was founded by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini.
Sriharsha Majety is an alumnus of Indian Institute of Management, Calcutta
and he currently serves as the Chief Executive Officer (CEO) at Swiggy. Co-
founder Nandan Reddy is an alumnus of Birla Institute of Technology and
Science and he heads operations at Swiggy. He had earlier worked at Galla,
Zurna, IDinsight, and Intellecap. Co-founder Rahul Jaimini is an alumnus of
Indian Institute of Technology, Kharagpur and he is the Chief Technical
Officer at Swiggy. Prior to Swiggy, he had worked at Myntra and NetApp.

Swiggy Journey:

Swiggy began its Journey from Bengaluru with six delivery executives and 25
restaurants on its platform. In the time of 3 years, it has scaled up with over
6,000 delivery executives across India in more than 8 cities like Delhi-NCR,
Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata, and Pune.

Swiggy Report Page 7

 What is Swiggy Access?
 Swiggy Access is a sales model for restaurants to expand into areas
which they want to but cannot because of capital issues. Restaurants
don’t have to invest in terms of real estate but can quickly launch in a
certain area. It aims to provide consumers with the choicest food
options in their neighbourhood, along with Swiggy’s seamless delivery.
These ready-to-occupy kitchens will offer restaurant partners a basic
setup with the required amenities. No rent or deposit will be charged
for premises. Partners will be able to leverage Swiggy insights to
improve their food quality through consistent consumer feedback. We
have launched a restaurant insights app for owners where they can get
real-time information on how their business is doing.

Swiggy cofounder Sriharsha Majety

 Our mission is to change the way India eats

o By Ondrila S Sarkar

Swiggy, the online food delivery start-up founded in 2014 with five personnel
and 25 restaurant partners, has now grown to 20,000 delivery executives with
partnerships of over 20,000 restaurants. The company, which has raised $155
million in funding till now, reported a loss of Rs 137.18 crore in FY16
compared to Rs 2.12 crore in FY15, while the revenue rose to Rs 23.59 crore
in FY16 compared to Rs 11.6 lakh in FY15, according to registrar of
companies data. Scotching reports of a potential merger with rival Zomato,

Swiggy Report Page 8

Sriharsha Majety, CEO and co-founder, Swiggy, said it is a tech company that
prides itself on operational excellence as it unveiled a new initiative in an
interview with FE’s Ondrila S Sarkar. Excerpts:

 How many cities will have Swiggy Access?

Right now, we have the first kitchen that is live in Bengaluru and we have
partners like Leon Grill, Punjabi Rasoi, Keventers, etc. Some of them are
already running and getting strong traction. Regarding expansion, this will be
a pan-India initiative and we will roll it out one by one. With our learnings,
we will need to fine-tune the model and you will see us launch a few dozen
restaurants over the next few months. Right now, there are four restaurants on
board and we will have 40 in a few more months.

 Do you think most food tech start-ups are grappling with

scale and hyper-competition?
It is an incredibly hard and complex business and each model is very
different. If you look at aggregators, a lot of them shut down in 2015, and
although some of them are trying to scale, sometimes it can be for a lack of
capital and at times, for lack of strong product market fit.

 Do you think that a ready-to-occupy kitchen is better than having a

cloud kitchen?
Our private brand is also housed in the same kitchen where we are
working with restaurant partners. We have not stopped anything. We
are obsessing over this consumer problem because they cannot find the
things they want to eat and many use cases are not fulfilled today.
There are different solutions for different problems, like there is an area
called home food. If we don’t see any restaurant or brand solving this
home-styled food problem in a few years, that’s when we
will think of solving it ourselves. So we are attached to the problem,
not the solution.

Swiggy Report Page 9

  What will be Swiggy’s major focus areas in 2018?

OUR MISSION:
Our mission is to change the way India eats apart from servicing the customer
better than last year and widening the assortment to enable users to order on a
higher frequency. Swiggy wants to be like a utility app for every Indian. We
want people to order food at least 15-20 times a month. That can only happen
if you solve deep problems and not just act as an occasional food delivery
provider. For us, it is about how we balance growth and customer service in
the long run.

Is there any one particular area where you feel you need to up your
investments?

We constantly keep upping our investments, specially in technology. Even

from our last fundraising, a large part of it was used for ramping up our
technology
.
What is the credit limit for the Swiggy Capital Assist
Programme?

We are not very specific on this and have very competitive rates. We have
tied up with Indifi and have got a good traction because 400 of our restaurant
partners have already applied for this programme.
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VISSION AND MISSION
India’s overcrowded food-delivery segment seems to have a winner.By
December 2018, Bengaluru-based Swiggy held nearly half of the market
share by transactional volume in the Indian online food-delivery space,
according to data from market intelligence firm Kalagato. Zomato was a
distant second with just over 26% share, the data shared with Quartz
show.“Swiggy has become India’s go-to app for food delivery. Their focus on

Swiggy Report Page 10

logistics has paid great dividends to the company,” said Aman Kumar, chief
business officer at Kalagato.

The six-year-old startup has had an impressive run over the past few years. In
mid-2018, Swiggy became India’s fastest startup to turn unicorn. By the end
of that year, it had raised $1 billion to expand its delivery network, explore
cloud kitchens, and even grow internationally.

Swiggy Report Page 11

 Chapter 2

Swiggy Report Page 12

MARKET SHARE & POSITION OF THE SWIGGY

Internet Swiggy online food Trend

Swiggy is literally the only consumer internet startup from the 2014-2015
hyper-funding wave that continues to thrive. That wave was supposed to

Swiggy Report Page 13

produce dozens of successful companies and a handful of unicorns. Once the
dust settled, only Swiggy succeeded. Along the way, it has beaten both far
older companies, such as Zomato and Foodpanda, as well as peers, including
Tinyowl, which eventually collapsed. Here’s how.

 Sharp focus on logistics

Swiggy’s success is part of a bigger trend in the startup ecosystem: companies

that have controlled the entire value chain of customer experience have
triumphed over pure marketplaces. Swiggy got a lot of things right, but the
driving force behind its success is in its excellent logistics operations.

Catch the trend early

For two of the founders, Majety and Reddy, Swiggy wasn’t their first rodeo
together, so to speak. The two BITS-Pilani graduates had come together in
mid-2013 to work on an idea that would fully capitalise on the Indian e-
commerce boom. The duo built a technology product called Bundl that aimed
to address a massive pain point in Indian e-commerce—shipping goods across
the country.

 Sharp focus on logistics

Swiggy’s success is part of a bigger trend in the startup ecosystem: companies

that have controlled the entire value chain of customer experience have

Swiggy Report Page 14

triumphed over pure marketplaces. Swiggy got a lot of things right, but the
driving force behind its success is in its excellent logistics operations.

Here the chart showing analysis between 5 companies about the India’s Food
delivery app market share transitional volume in 2018.

 In the year 2018, the transitional share of swiggy is continuously in the

good position than the other from their competitors.

 Its deep discounting strategy, however, wasn’t sustainable. The average

order value for Foodpanda declined drastically from over Rs300 to
under Rs120 during 2018.

“If the average order value is down by two-thirds, either a company has been
discounting its users’ spends or customers aren’t spending enough,” said
Kumar. This, while incumbents Zomato and Swiggy moved further away
from the cash-burning model, slashing discounts by 40%.

Swiggy Report Page 15

  Zomato, UberEats and (Ola’s) Foodpanda are credible players, but
food delivery is not their core business. They can’t do what Swiggy
does day in, day out- Swiggy board member Vishal Gupta

“Zomato, UberEats and (Ola’s) Foodpanda are credible players, but food
delivery is not their core business. They can’t do what Swiggy does day in,
day out," said Gupta. Indeed, Swiggy still has a significant edge over its
nearest rivals, but it remains to be seen whether it can avoid mistakes in the
nest phase.

Funding:
Swiggy has received investments worth USD 155.5 million via six rounds of
funding. Investors include SAIF Partners, Harmony Partners, Naspers,
Norwest Venture Partners, Bessemer Venture Partners, and Accel Partners.

Acquisitions:
Swiggy had acquired gourmet food startup '48East' in December 2017. The
acquisition of 48 East has helped Swiggy to strengthen its service offerings
and add additional capabilities as well. The deal was done for an undisclosed
amount.

Competition:

Swiggy competes with other players in the food ordering and delivery space
such as Zomato, Box8, Holachef, Dineout, etc.

Indian food delivery market is valued at 15 billion dollars and set for an

exponential growth. Food delivery has become a very competitive market in
India. Swiggy is in direct competition with major on-demand food
aggregators like Zomato. Whereas there are other
small startups like Foodpanda and Faasos also in the competition

Swiggy Marketing Strategies

Swiggy Report Page 16

Swiggy’s marketing strategy consists of both online and offline marketing
campaigns.It promotes its campaigns via Facebook, Twitter, Youtube,
Pinterest, and Instagram. Some of its campaigns include- Second to
mom,Diwali Ghay Aayi, ,Sing with Swiggy and Know your food series of
pictures and food walks in a local area. The company has successfully built its
brand awareness and connects with its audience through these channels. Their
facebook page is quite active with regular updates, averaging to one post a
day. Swiggy uses its Social media not only for campaigning but to engage
with its customers from solving the greviences to taking the feedback.

Swiggy Journey:

Swiggy began its Journey from Bengaluru with six delivery executives and 25
restaurants on its platform. In the time of 3 years, it has scaled up with over
6,000 delivery executives across India in more than 8 cities like Delhi-NCR,
Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata, and Pune.

https://www.whizsky.com/2017/09/case-study-swiggy-business-model-new-competitors-
marketing-strategies/

Swiggy Business Model-

 So after knowing somethings about case Study on Swiggy now will
read about Swiggy Business model so let’s start about this also-
 Now Swiggy is Doing a great job with his competitors, there are few
things which make it better than Zomato and other food ordering
services.

1. Swiggy has their very own armada of conveyance young men in

each area which is paid on each request they convey.
2. Swiggy doesn’t take all eatery on their stage and take just chosen
where arrange volume and quality can be kept up
3. Conveyance young men are very much overseen and reach before
time to pick up the request at the restaurateur which makes the
conveyance on time.Swiggy is additionally spending substantially on
showcasing to make its nearness.

Swiggy Report Page 17

How Swiggy Earns?

So when we are talking about Swiggy business model then we should also
have how it earns? So the main ways Swiggy earns are only two ways-

Swiggy also charges a nominal delivery fee from customers on every order
below a specific value which 200 rupees for most cities.

The major part of Swiggy’s revenue from the commission it collects from
restaurants for lead generation and for serving as a delivery partner.

Swiggy Report Page 18

\Swiggy food order & delivery app:-

Swiggy has been in the news for all the correct reasons as of late having
obtained the ‘Unicorn status’. The organization has developed at an amazing
pace getting a great many clients each passing month.

Swiggy Report Page 19

With more prominent client base, comes more noteworthy obligation to give
an uncommon affair to them. Here, I am playing out a Heuristic assessment of
the Swiggy App in accordance with the ’10 Usability Heuristics for User
Interface Design’ by Jakob Nielsen.

I would rate the application as Good, Average or Bad against every Heuristic.

1) Visibility of system status — Bad

The principal heuristic criteria express that an item ought to dependably

demonstrate the framework status anytime. Swiggy appears to come up short
at a few occasions in such manner. For Example:

In the home screen of the swiggy application, they give different offers in
card design comfortable best of the page. At the point when a card is clicked,
the screen ends up clear for few cases, possibly a second or a couple of
milliseconds and after that the following screen loads.

The loader or an advancement bar isn’t just absent here yet in the majority of
the occurrences where we explore between pages

Despite the fact that it is moderately a brief timeframe, quite possibly the
clear screen may keep going longer on a slower web association. This will at
last reason the client more prominent distress and perplexity.

2) Match between the system and the real world-

The application scores full focus in this criteria.

 The stream of the application is all around characterized and it

functions of course.
 Every one of the symbols is very much upheld by marks.
 The application talks in clear, basic and regular dialect.

3) Consistency and standards -

The application keeps up great consistency in all aspects — iconography,

dialect and interface components.

Swiggy Report Page 20

There was a slight irregularity in the outline with respect to the symbol for
‘Offers’.

In one truck page a round symbol was utilized and in the settings page a
somewhat rectangular symbol. I don’t perceive any issue in reusing a similar
round in the settings page as Well.

https://newsface.co/case-study-on-swiggy-business-model-marketing-strategy-funding-good-or-
bad/

SWIGGY COMPETITOR’S

Zomato vs Swiggy vs Foodpanda vs UberEats : Market share,

2018

1. Swiggy has scaled 14 million monthly orders with an average order

value of Rs. 380
2. Zomato has crossed 10.5 millon monthly orders with an average order
value of Rs. 416
3. Foodpanda clocks in around 1.2 million monthly orders
4. UberEats cloks in around 750,000–1 million monthly orders

Swiggy Report Page 21

Competitive Analysis of the Indian Food delivery industry-
Zomato, Swiggy, UberEats and Foodpanda

State of the Indian Food Delivery Industry, 2018

The Indian food delivery industry is going through a phase of

consolidation to survive and stay competitive in the market. This
consolidation is taking place because the smaller players in the market
want to exit and the cash rich players want to continue on their growth
trajectory. Ola has recently acquired FoodPanda and FoodPanda has
acquired HolaChef. This consoldiation is a result of fresh inflow of
institutional money.

As the barriers to entry are fairly low due to the unsophisticated

business model, the incumbents constantly face the threat of new
competitors in the market which in turn puts pressure on the already
wafer thin margins. This can be gauged from the fact that between 2013
and 2016, there were 400 food delivery apps.

Newer entrants that are leveraging Artificial Intelligence are also garnering
investor interest. The current big four of the food delivery industry-
FoodPanda, Zomato, UberEats, Swiggy need to keep expanding the coverage
of the restaurants, servicable areas and rework their pricing models to stay
competitive and grow. High cost of customer acquisition combined with low
switching cost makes this an industry with high cash burn rate.

Swiggy Report Page 22

 Chapter : 3

Swiggy Report Page 23

 PESTLE Analysis of the Food Industry

There’s no denying that the food industry is one of the strongest in the world
— after all, everyone needs to eat! Indeed, there are some interesting
dynamics at play in this space, like rising labor costs, which make it unclear
just how profitable food businesses will continue to be.

In this PESTLE analysis, we’ll look at the Political, Economic, Sociocultural,

Technological, Legal, and Environmental factors affecting the food industry;
in particular, we’ll look at how both restaurateurs and food distributors might
be affected by current trends.

Swiggy Report Page 24

  POLITICAL
Here are the Political factors impacting the food industry:

WIDE REGULATION

Governments across the world have expansive regulatory frameworks for

every aspect of the food industry. This includes the cleanliness of commercial
kitchens, the standards for storing and transporting produce, and even the
requirements for laborers in the food business. Without a doubt, this makes
the food industry one of the most tightly-regulated industries of all. On the
plus side, this ensures that consumers aren’t exposed to poor quality nutrition,
but the complexities of regulation certainly take away from the margins of the
food business.

 ECONOMIC
Here are the Economic factors impacting the food industry:

GROWING DISPOSABLE INCOMES

As a general trend, the world’s population is only getting richer. That means
that individuals in the lower, middle, and upper classes all have more money
to spend on luxuries — including restaurant food. As a result, the overall
revenue of the food industry is growing, as individuals cook less and eat out
more often. This has a positive effect on all corners of the space, including
restaurateurs, food distributors, and the individual workers who play a role in
these businesses.

INCREASING LABOR COSTS

Disposable incomes are growing for a reason: laborers are earning more
money these days. On the whole, the cost of hiring workers is increasing
across all industries. This is caused by not only a growing demand for
employees, but also higher and higher government expectations for minimum

Swiggy Report Page 25

wages. As in many other industries, the effect of increasing labor costs is
simple: less margin for the owner of the business, and thus less profit.

 SOCIOCULTURAL
Here are the Sociocultural factors impacting the food industry:

HEALTH CONSCIOUSNESS
Nowadays, scientists know more about the relationship between food and our
bodies than ever before. There’s a clear relationship between the food we eat
and our personal health, and consumers are conscious of this. As a result,
many individuals are looking for healthier ways to fuel their bodies. This
doesn’t necessarily have a positive or negative effect on the food industry, but
it means that businesses will have to adapt to stay relevant. For example, fast
food businesses will likely have to move away from traditional, high-calorie
fried foods towards healthier alternatives like salads.

DIETARY RESTRICTIONS
Aside from having a better grasp of what kinds of food are and aren’t healthy,
consumers are also more knowledgeable about their individual dietary
restrictions. For example, many individuals now understand the negative
impact of gluten in those with Celiac disease. This has led to consumers
expecting greater understanding on behalf of those who work in the food
industry. Once again, this isn’t necessarily a bad thing, but it means that the
food industry will have to make changes to keep clients happy.

Swiggy Report Page 26

  TECHNOLOGICAL

Here are the Technological factors impacting the food industry:

AUTOMATION
We’re seeing various types of automation more and more in the food industry.
Perhaps the best example is the use of self-checkout screens at fast food
venues such as McDonalds, but it’s not the only one! Just recently, social
media platforms went crazy as viral footage of a hotel’s robot cooking up
omelettes began to spread. As we find more ways to use technology —
including robots — in the food industry, there will be less need for laborers.
Overall, this is a good thing for the industry, as it will allow businesses to
improve profitability and reduce the likelihood of human error.

LEGAL
Here are the Legal factors impacting the food industry:

SAFETY STANDARDS
As touched upon in the Political section of this PESTLE analysis, the food
industry has high standards for safety matters. In particular, there are scores of
rules in every country on how food should be transported, stored, and
prepared— including directions on what temperatures various food types can
reach, how they should be cleaned, and so on. While this is indeed largely a
Political issue, it becomes a Legal matter if any of these regulations are ever
breached. As such, those in the food business need to be extremely careful to
ensure that they stay within the bounds of these rules to prevent costly
lawsuits.

ENVIRONMENTAL
Here are the Environmental factors impacting the food industry:

IMPACT OF MEAT

Swiggy Report Page 27

Not only is there growing awareness for the health repercussions of the food
we eat, but also for the environmental repercussions of the food we eat. One
particularly problematic food group from an environmental point of view is
meat. The production of meat — especially red meats — uses huge amounts
of water and creates a significant carbon footprint. No less, the meat industry
is tearing down large amounts of forest to create new space for farms. The
result of this is that more and more individuals are switching to plant-based
diets, and governments are slowly taking interest. Once again, this isn’t
necessarily a negative for food businesses, but they will have to recognize the
impact of this shift in the long term.

PESTLE ANALYSIS OF THE FOOD INDUSTRY: FINAL

THOUGHTS
This PESTLE analysis of the food industry is certainly an interesting one. It’s
a mix of positives, negatives, and uncertainties. On the one hand, consumers
have more to spend on food and robots can reduce expenses. On the other
hand, the space is carefully regulated and labor prices are increasing. What’s
more, eaters’ diets are becoming increasingly more specific. Of course, the
food industry is here to stay, but it seems those who prevail will have to
understand what consumers really want to be eating in the 21st century.

Swiggy Report Page 28

 Chapter : 4

Swiggy Report Page 29

 SWOT Analysis of Swiggy

 Strenghts in Swot Analysis of Swiggy

 Fast Delivery : Swiggy is always for its It has always take care of their
customers by delivering their order in time.
 Sensible complete Image : We think of ordering food the first Name
which click is Swiggy . It has developed clean and crystal image among
prople.
 Trained folk for creating Delivery : Swiggy has well trined their team
to march in the market .
 Wide selection of eating place offered : The main USP Point of Swiggy
is that they provide eating option from Various place and wide ranges.
 Delivery is free : Swiggy takes care from ordering and till delivering of
the food with charges.
 Neat Packaging : Swiggy delivers the food with neat and hygienic
packaging.

 Weakness In Swot Analysis Of swiggy.

Orders Solely on the market from the restaurants that are within the
zone of the order placed. Swiggy is targeting on the zonal restaurants.
As their competitors are increasing they need to expand their restaurant.
Low Awarness of brand name : Swiggy needs to re work on their
branding. They need to create some more marketing strategies to be in
market.

 Opportunities in swot Analysis of swiggy.

 Pioneer in food Delivery Business : Swiggy was the first Platform to

introduce this concept in the market . They have shown a new way to
Home – Delivery with minimal charges.
 Growing marketplace for Potential Customers. They have shown
people to rise and grow in the market.

Swiggy Report Page 30

  Increase in market Share : A little re-branding can re grow theme in the
Market.
 Value Effective and sensible Quality food: They need to increase their
Zonal Restaurant Base to compete in market.
 Give higher Service: Delivery should be more quick and no charges.

 Threats in SWOT Analysis of swiggy.

 Increasing Health Consciousness.

 Increasing potential competitors.
 Negligence of potential competitors.

Swiggy Report Page 31

 Chapter : 5

Swiggy Report Page 32

 

FINDINGS
Swiggy Go for instant pick up, dropping packages launched
Food delivery platform Swiggy on Wednesday launched 'Swiggy Go here
which is an instant pick up and drop service to send packages anywhere
across the city. According to the company, Swiggy Go can be used to pick up
and drop off laundry, get forgotten keys, send lunch boxes from home to
office or even deliver documents or parcels to clients.

Similar to Swiggy Stores -- which promises to deliver to users' doorsteps

household items like groceries, flowers, and medicines among other things
within an hour -- Swiggy Go will be part of the main app. "Swiggy's vision is
to elevate the quality of life of urban consumers by offering unparalleled
convenience. After enabling this with food delivery for five years and stores
across the city with Swiggy Stores, Go will open the Swiggy delivery
superpower to all consumers in the city," Sriharsha Majety, CEO, Swiggy,
said in a statement.

"Bengaluru will be the first city in the country to experience Swiggy do the
last-mile delivery for everything, not just food. By 2020, we will expand
Swiggy Go to over 300 cities and Swiggy Stores to all the major metros,
ushering in a new era of convenience for consumers across India," Majety
added.

Swiggy also said it will expand its on-demand delivery service -- Swiggy
Stores -- to Bengaluru and Hyderabad.

In Bengaluru, the platform will deliver from any store, including more than
300 merchant-partners like Godrej Nature's Basket, Nilgiri's, Organic World,
Heads Up For Tails and Nandu's Chicken.

In Hyderabad, the company has tied up with close to 200 merchant-partners

like Ratnadeep, Ghanshyam, Sneha Chicken, Yellow and Greens and 24

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Organic Mantra, in addition to delivering from any store a customer chooses
in the city.

This comes weeks after the National Restaurant Association of India (NRAI)
asked food delivery platforms Swiggy, Zomato, Uber Eats and Food Panda to
do away with deep discounts while addressing other issues. In letters written
to all major online delivery aggregators, the association said that during its
interaction with restaurant operators, it was observed that operators displayed
strong resentment at the current status of transparency, forced discounting,
uneven commission structure and general high-handedness of the aggregators
in the food delivery space.

Source :- https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/swiggy-go-for-
instant-pick-up-dropping-packages-launched/articleshow/70973657.cms (ET news -5sep2019)

Swiggy may cap its share at 25% of the total bill

Swiggy may cap the commissions it charges restaurants at 25%, two people
with knowledge of the company’s plans said, in a potential sign of a thaw in
an ongoing impasse between food delivery companies and a restaurant
owners’ body.

Swiggy Report Page 34

The move comes right after the Bengaluru-based food delivery company met
with the National Restaurants Association of India (NRAI) last week to
resolve the impasse.

Swiggy’s decision will benefit small business owners, who do not have the
leverage to seal better deals due to the inability to process larger volume of
orders.

“Compare this to large chains, which sign ironclad agreements because they
have the capability to furnish larger volumes,” said one of the people.

A Swiggy spokesperson told ET, “Commissions are a range, depending on

various factors. Keeping these factors well defined and transparent, Swiggy
has always worked with commissions that are mutually agreed upon and
create a win-win with our restaurant partners.”

The spokesperson, however, said the 25% cap was “speculative”. Recently, a
Hyderabad-based hotels association said that most restaurants in the city were
willing to go off online food delivery platforms, if the commissions were not
capped and discounts not done away with.

Swiggy’s move will mean a temporary loss of revenue, as several restaurants

who have signed deals with the company earlier give commissions of nearly
30% of the order value. “It can be easily made up via ads for now and other
revenue verticals such as Stores later,” said one of the people mentioned
earlier.

A cap on commissions was discussed at the NRAI meeting last week, but the
restaurants’ association had insisted on a matrix-like structure.

“We spoke about a tier-based structure that would depend on average order
value and the number of orders,” said one of the people who attended the
meeting with the NRAI.

Officially, NRAI has asked Swiggy to come back with a revised proposal in
14 days.

“Our commissions are in accordance with the industry average and take into
consideration the quality of services we provide both consumers and
restaurants,” a Zomato spokesperson said in an email, adding the company
had a detailed meeting with NRAI where all issues were discussed.

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Over the last few years, both Swiggy and Zomato have aggressively focused
on acquiring new customers and driving customer repeats. They have
managed to do that by offering services such as free delivery, and partly
funding discounts. On the restaurant side, both companies have significantly
increased their take (commissions) to as high as 30% from a low 5%.

Apart from commissions, NRAI also asked Swiggy and Zomato to unbundle
their services.

Both companies have, however, stayed quiet on unbundling services.

Initially, when Zomato introduced online orders, it kept food delivery

restricted to partners who could make their own delivery. Swiggy, meanwhile,
is working on technology that will enable restaurants to accept and make their
own deliveries if they so choose.

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 Chapter : 6

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 RECOMMENDATION

App Glitches
Swiggy app has bugs. These are visible only when we spend a good amount of
time and looking deep into it. Lets see a few of them.

a) In the first screen below, the delivery person has picked the food from
restaurant (pin in the center) and he is supposed to ride the bike towards my
home (bottom pin in screen). But, the bike went in 180 degree opposite
direction. Upon calling the delivery person, he said he has gone to fill petrol.
After 20–30 minutes, he reached my home for delivery, but his bike location
was still the same as shown in screenshot.

Also, I had to be on call with Swiggy customer support for 27 minutes to

know the realistic location of the delivery person. The total food order value is
Rs 253, and the call to Swiggy costed me Rs 41, its 16% of the total order
value. Had the app shown the exact location of the delivery person, I need not
have spent my 27 minutes with a customer support person, and I need not have
spent additional 16% of order value.

b) When a food item has an option to customise, the food item gets selected
and added to cart as soon as user clicks on the “Customize” link.

In the screenshot below, clicking on Customize in screen 1 will open screen 2,

clicking on “Done” in second screen will add the item to cart (even though
user is just seeing the customisation options, refer screen 3). The data field is a
radio button, and the first field is selected by default. This is the reason the
food item gets added to cart.

c) “Refer a friend” feature opens up Gmail with empty content — no link to

download Swiggy app.

Swiggy Report Page 38

d) You add a food item to cart. You will not be able to access the cart once the
restaurant closes. This looks like a product requirement that’s implemented.
But, why not to show the cart?

e) This is a very interesting glitch. You place order for a bunch of food items.
If any one of the item is not available at the restaurant (which mostly is the
case), then the Swiggy representative calls you and asks for alternate item to
be ordered. If the new food item is lesser than the actual ordered item’s cost,
then the entire order is marked as “cancelled” at their backend tool.

Here, in this example, my food was delivered successfully (with a new

replacement food item that’s lesser in cost than the original order). But, every
time I goto Account section, a popup is displayed saying the order is
cancelled.

Also, why the background map displays Africa?

Though the app does its job most of the time, constant tinkering
of the app for its UI/UX and conversion improvements needs to
be carried out constantly.

a) There is an option to mark a restaurant as favorite. Watch the Gif file and
see if there is a disconnect in flow.

Got the disconnect? No?

Here it is — the disconnect is in design consistency. When you mark a

restaurant as favorite, the heart icon turns RED. Again, when you open the
same restaurant, the heart icon is filled with WHITE. Clicking on the icon
empties the WHITE, and again clicking on it fills it with RED.

b) Some of the restaurants have a really large menu group. In the example
shown below, New Shanthi Sagar has over 25 menu groups. How many scrolls
a user has to do to even browse through the groups? Is the horizontal scroll

Swiggy Report Page 39

component in Android the best choice for displaying massive number of menu
groups?

c) There is a collection called “Picked For You”. The display order of food
items inside this collection doesn’t seem to have a logic — not alphabetic, not
by rating of restaurant, not by delivery time too.

It looks like a random list of restaurants put into a Collection. I’ve neither
ordered a Chinese cuisine nor any fried items. But, majority of the
recommendations are for these type of food.

Also, some of the delivery times are highlighted in Orange, and some in
Green. After browsing, it was understood that restaurant with delivery time
above 45 minutes are shown in Orange color. But, this “45 minute delivery
time as a sweet spot” is no where mentioned by Swiggy (unlike a Box8 that
highlights the message that its delivery will be within 38 minutes)

d) Can you spot the Green circle next to “Filter” menu on top right? In design
parlance, these indicators are used to highlight a state of a field. In this case,
I’ve not applied any filter. Always Filter label has a Green circle.

e) When a restaurant has multiple outlets around you, the display order is
again up for improvement. In Polar Bear example, ideally either the rating
should have been 3.8 or the delivery time should have been 45 minutes (not
3.6 and 50 minutes).

f) “Delivery Executives are busy”. It is better to mention a call to action from a

user perspective than conveying the fact that the delivery executives are busy.
How about displaying “Too many orders for this restaurant, delivery time
might be 60–75 minutes”? By placing this message, you are also conveying a
positive message (that this restaurant is a hot cake)

Also, why “E” in Executive has to be in caps? (its neither a noun, nor a
pronoun) Source : https://productlocus.com/product-review-swiggy-a-
food-ordering-mobile-app-b3e4ac626107

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 Chapter : 7

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 REFERENCES

Bibliography

 https://www.whizsky.com/2017/09/case-study-swiggy-business-model-
new-competitors-marketing-strategies/

 https://www.whizsky.com/2017/09/case-study-swiggy-business-model-
new-competitors-marketing-strategies/

 https://newsface.co/case-study-on-swiggy-business-model-marketing-

strategy-funding-good-or-bad/

 https://productlocus.com/product-review-swiggy-a-food-ordering-
mobile-app-b3e4ac626107

 https://qz.com/india/1635965/in-2018-swiggy-beat-zomato-olas-
foodpanda-uber-eats-by-a-mile/
 https://www.livemint.com/

 https://www.slideshare.net/ParveshMourya/swiggy-market-analysis

 https://m.economictimes.com/small-biz/startups/newsbuzz/swiggy-
scores-a-232-surge-in-revenue-in-fy18-at-rs-442-crore-inches-closer-
to-zomatos-fy18-revenue/articleshow/66406476.cms

Swiggy Report Page 42

 Chapter : 8

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 EXECUTIVE SUMMARY

Swiggy is food ordering and delivering company based in Bangalore. It

provides a single window for ordering from a wide range of restaurants and
have their own exclusive fleet of delivery personnel pick up orders from
restaurants and deliver it to customers.It is a complete food ordering and
delivery solution that connects neighbourhood restaurants with urban foodies.

Swiggy is literally the only consumer internet startup from the 2014-2015
hyper-funding wave that continues to thrive. That wave was supposed to
produce dozens of successful companies and a handful of unicorns. Once the
dust settled, only Swiggy succeeded. Along the way, it has beaten both far
older companies, such as Zomato and Foodpanda, as well as peers, including
Tinyowl, which eventually collapsed. Here’s how. Zomato, UberEats and
(Ola’s) Foodpanda are credible players, but food delivery is not their core
business.
The acquisition of 48East has helped Swiggy to strengthen its service
offerings and add additional capabilities as well. The deal was done for an
undisclosed amount. Swiggy also charges a nominal delivery fee from
customers on every order below a specific value which 200 rupees for most
cities.

The major part of Swiggy’s revenue from the commission it collects from
restaurants for lead generation and for serving as a delivery
partner.Governments across the world have expansive regulatory frameworks
for every aspect of the food industry.As a general trend, the world’s
population is only getting richer. That means that individuals in the lower,
middle, and upper classes all have more money to spend on luxuries —
including restaurant food.

Swiggy Report Page 44

Nowadays, scientists know more about the relationship between food and our
bodies than ever before. There’s a clear relationship between the food we eat
and our personal health, and consumers are conscious of this.Once again, this
isn’t necessarily a bad thing, but it means that the food industry will have to
make changes to keep clients happy. We’re seeing various types of
automation more and more in the food industry. Perhaps the best example is
the use of self-checkout screens at fast food venues such as McDonalds, but
it’s not the only one!

Swiggy app has bugs. These are visible only when we spend a good amount of
time and looking deep into it. When a food item has an option to customise,
the food item gets selected and added to cart as soon as user clicks on the
“Customize” link.Fast Delivery : Swiggy is always for its It has always take
care of their customers by delivering their order in time.Low Awarness of
brand name : Swiggy needs to re work on their branding. They need to create
some more marketing strategies to be in market

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 THANK YOU

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