SWIGGY if first online food ordering and delivering company In India. SWIGGY provides a platform where the customers can choose the food from various Restaurants of their choice. The details of menu, rates are available on application.
Mr. Nandan Reddy, Sriharsha Majety and Rahul Jaimini are the founder of Swiggy in 2014.
The journey of Swiggy began from Bangaluru with only six delivery executives and just 25 restaurants were registered on the platform. However now there are many delivery executives and many restaurants on platform across Mumbai, Pune, Bangalore, Hyderabad, Chennai, Delhi, Gurgaon and Kolkata.
SWIGGY MODEL
The business model that swiggy is following is B2C model. The swiggy sells the food to final customers. Their major objective of SWIGGY is they focus on providing best service to customer by providing fast delivery, good packaging, good rates etc.
The swiggy targets the younger generation. Under the demographic segmentation, swiggy if promoting its services to the audience of age group 18-40 years, who feel very convenient for food to deliver their food at doorstep. Another group are working or college students who work at office and can order comfortable when they feel free or hungry.
The swiggy has provided employment to many people. They have appointment many delivery people who deliver the goods. The SWIGGY has also given an opportunity to many small vendors to get register with the company and sell their food through the platform.
- Cost structure
Swiggy was first online platform to sell food online to final customers. It has to incur huge cost and expenditure. The major sources of cost are paying to delivery person. another huge cost is paid for the mobile app and its update and maintenance, advertisements, marketing, promotion, promotional offers, accounts related expenses, etc
- Payment method:
SWIGGY has also made payment easy to customers. Now, the customers can easily make payment through debit card, credit card, upi, net banking or cash on delivery.
The customer can get refund of the amount if there is any problem on non-delivery of goods.
QUICK SOLUTION FOR CUSTOMER’S PROBLEM
SWIGGY has very user interface. The customer can resolve their problems by making complains on application. They can chat with the customer executive.
Revenue Sources of Swiggy:
For any business it is very important that firm or business arns revenue. Without revenue, any business can’t survive in long run. There are many sources from where Swiggy Earns its revenue. For the Financial year 2020, Swiggy has earned income of around Rs 2956 crore.
In 2019, the revenue income was Rs. 1128 crore. In 2020, the highest revenue of Rs 1502 crore earned was from commission. The revenue from delivery charges in FY 2020 was Rs 546 crore while other source of revenue was swiggy access Or cloud kitchen is Rs 405 crore.
There are various revenue sources through which SWIGGY earns huge amount of revenue.
1.Delivery Charges
SWIGGY charges some delivery charges from customer while placing the order. This is the one of the source of collection of revenue from the customers. The delivery charges is charged from customer for order below some threshold. The delivery charges are raised during some festivals or some occasions.
2. Commissions
Another source of revenue generation is Commission. It charges commission from the food vendors, restaurants, hotels for generating sales leads and for delivery of food through
S. It collects commissions swiggy’s delivery channels.
Swiggy chares around 15 % to 20% from the Restaurants for every order placed from Swiggy’s website or Application.
3. Advertising
Advertising is another way to earn revenue. There are promotion of various restaurants on its application. These restaurants pay huge amount of money to Swiggy as brand promotion makes people aware about their brand and hence there is increase in sale of the food. Swiggy promotes the ads of various popular Or new restaurants on its mobile app.
4. Subscription
Swiggy has another source of earning huge revenue through applying for subscription of Rs 89. When customer avails for such subscription they gets benefits while placing the orders in form of high discounts or buy 1, get 1 offers etc.
5.Affiliate Income
Affiliate income is another source of having huge revenue generation for swiggy. Swiggy has partnered with various financial institutions like HDFC BANK, ICICI BANK, CITIBANK etc. There are many offers like cash back, special discounts using the credit or debit card.
It is very important to have SWOT analysis for any business plan. The SWOT analysis provides us information about strengths, opportunities, weakness and threats of the business idea, that would help the company to promote its sale. However, it provides an opportunity and provides us an idea on the weak side of business.
STRENTHS:-
- QUICK DELIVERY SERVICE
Swiggy is famous for its timely delivery services.The application based service business provides delivery of goods on time. There is estimate time of delivery on mobile application, with live tracking of order placed. The mobile application or platform is prepared in such a way that it accepts the order as per the customer location. This is the biggest strength of SWIGGY as it values the customer time and respects the feeling of hungerness as it provides quick delivery of food.
- EASY USER INTERFACE
Swiggy has provided very easy and comfortable interface to place their orders. Swiggy interface is arranged in such a way that it provides details of hotels, menu and rates. The customer can choose food of their choice. The interface also provides the payment options. The swiggy accepts cash on delivery and other cashless mode of transaction. After placing the order, customer can track the order easily.
- SAFETY-DELIVERY
Now a days, because of covid-19, the SWIGGY takes proper precautions to deliver goods taking all safety measures. The delivery person wears the face mask and food is delivered under complete guidelines.
- TRAINED EMPLOYEES
The employees of SWIGGY are well trained and provides good quality of services to the customers.
- WIDE SELECTION
Another strength of SWIGGY is the wide selection or options it has of the eateries. It provides many choices in menu for Vegetarian and Non vegetarians.
- PACKAGING
Packaging in itself is one of the strengths of any good provided to customers. The swiggy ensures the foods are properly packed with good hygiene. The food is delivered to customer in proper packaging done.
WEAKNESS
The swiggy model has some weakness also. The SWOT analysis provides the opportunity to the owner to work on weakness and increase its sale and customer base.
- LIMITED AREA COVERAGE
The one of the weakness of SWIGGY model is it has limited area coverage. The swiggy has not able to reach rural areas. It is given a wide reach in metropolitan city.
BRAND AWARENESS:
The brand awareness of SWIGGY is less. There are many online platforms like ZOMATO, UBER EATS, etc. It needs to pay more attention to promote its brand. Recently, after the lockdown relaxation, there was an advertisement campaigns done by swiggy to bring the sale. It is very important for SWIGGY to promote and make people aware about its Services.
DELIVERY CHARGES
The swiggy charges some delivery charges for delivery of foods. Due to this the bill amount increases. This makes some customers hesitate to order good online. If the delivery charges are removed, the customers will be happy and this will ensure good increase in sale or placing of orders.
OPPORTUNITIES
The swiggy model has provide great opportunities to many competitors. SWIGGY is the first online platform for delivery of food in market. It is grabbed a huge customer base. SWIGGY have shown new methods to deliver food. Because of busy lifestyle, it is expected that there will be large increase in customers for online ordering of goods. SWIIGY can improve its market share by promoting its brand and reducing delivery charges. Swiggy should invest in advertising its brand so that it can be reached to many customers. SWIGGY should focus more ways to add to its services. For example-The swiggy has started delivery of grocery items in city-GURUGRAM. This can be done to other parts of country. The swiggy has provided many opportunities to small food vendors as the goods now can be ordered through portal .it has increased sale of local food vendor. Due to this there is increase in revenue of company.
THREATS
The swot analysis also identifies the threats. One of the biggest threats is its customers. The swiggy has few customers. Swiggy needs to develop the customer through proper marketing strategies. When there are few customers, it will be difficult to increase sale and profit.
Moreover, there are many other competitor brands like zomnato, uber eats. They are the biggest threat to swiggy as wide range of customers are attracted towards another online platform.
The SWOT analysis of Swiggy has highlighted the main strengths of the brand that comes up from its quick delivery service, having a good, user friendly user interface, having trained employees, including a wide option of eateries, and good packaging.
Its weakness is seen from its limited coverage, less brand image, and charging delivery charged from customers… Its opportunities are swiggy is first online platform to serve customers, in being an innovator of the idea and an increase in the market share because of increase in demand. However, the biggest threat is from its competitors and there are few customers who are very health conscious. The swiggy needs to bring awareness to people that they provide best hygienic goods
SWIGGY no doubt is among one of the successful business in today situation. Even during lockdown, the food business suffered many losses. But, swiggy had spent on advertisement in order to grab the sale. The swiggy is platform where it has given employment to many people and opportunity to small food vendor to sell food on single SWIGGY platform. The company has promoted during festivals and no doubt it is one of largest food selling platform in India.
BY CHANDARKANT GOYAL, HARYANA
