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Swiggy’s Business Model: Revolutionizing Online Food Delivery in India

Swiggy is an online food ordering and delivery platform that revolutionized the food delivery industry in India. Founded by Nandan Reddy, Rahul Jaimini, and Sriharsha Majety in 2014, the company has grown to become one of the leading food delivery platforms in the country, with a market share of over 40%.

In this article, we will explore Swiggy’s business model canvas and its history and operations. Swiggy Business Model Canvas:

Customer Segments:

Swiggy’s primary customer segments are urban foodies, students, and people who prefer online food ordering.

These customers value convenience and accessibility, and Swiggy provides both with its user-friendly app and efficient delivery system. Value Propositions:

Swiggy’s no-restriction order policy and efficient online payment system make it easy for customers to order food online without any minimum order amount.

Swiggy’s app also gives restaurant partners easy access to its customer base, helping them reach a wider audience. Swiggy also offers additional services through its Swiggy Stores and Swiggy Go services.

Swiggy Stores provides grocery delivery services, while Swiggy Go offers pick and drop services for packages, medicines, and more. Delivery competency is also a vital value proposition for Swiggy, with a fleet of 45,000 delivery personnel who make timely and efficient deliveries.

Customer Relationships:

Swiggy’s customer relationship strategy revolves around maintaining positive customer relationships, offering 24/7 active customer support, and implementing a rating and feedback system to improve its services continually. Channels:

Swiggy interacts with its customers through its mobile app, website, and various digital marketing activities designed to attract and retain customers.

Key Resources:

Swiggy’s key resources include its local partners, delivery providers, human resources, and technology. Key Activities:

Swiggy’s key activities include building partnerships with local restaurants, hiring delivery providers, and acquiring new customers, managing the delivery and payment process, and maintaining its technical operations.

Key Partners:

Swiggy partners with restaurants and shops that are interested in expanding their customer base and increasing their revenue, as well as delivery providers who help ensure timely and efficient deliveries. Swiggy also partners with Instagram to give its restaurant partners access to advertising opportunities.

Cost Structure:

To maintain its services, Swiggy incurs several costs, including payroll expenses, application and website development costs, running and maintenance costs, administrative, advertising, and marketing costs, and other miscellaneous expenses. Revenue Streams:

Swiggy generates its revenue through delivery charges and commissions from restaurant partners.

The company also earns revenue through advertising activities like banner promotions and priority listing of restaurants. Swiggy Access generates revenue through its cloud kitchen concept and by enabling restaurant partners to open in new locations.

Swiggy Super is a membership program that generates revenue through its subscription fees, while Swiggy’s delivery service, Swiggy Go, generates revenue through its concierge service and pick and drop services. Swiggy also earns affiliate income through its partnerships with financial institutions and credit card offers.

Swiggy History and Business Operations:

Founders and Business Expansion:

Swiggy was founded in 2014 by Nandan Reddy, Rahul Jaimini, and Sriharsha Majety. The company started as a small startup in Bengaluru, with the aim of simplifying the food ordering and delivery process for customers.

Since its founding, Swiggy has expanded to more than 500 cities in India, and its daily order volume has increased to over 14 million orders per month. Online Food Ordering and Delivery Industry in India:

The online food ordering and delivery industry in India has grown rapidly over the past few years, thanks to the growth of the Internet and the increasing number of smartphone users.

According to a report by Statista, the online food delivery market in India is expected to grow at a compound annual growth rate of 9.3% between 2021 and 2025. Swiggy’s Innovative Technology Platform:

Swiggy’s innovative technology platform offers a single point of contact for customers, allowing them to easily navigate menus, place orders, and track their deliveries.

Swiggy’s technology also enables restaurants to stay up-to-date with their orders, and its real-time tracking system ensures timely and efficient deliveries. Swiggy’s Dual-Partnership Model:

Swiggy’s dual-partnership model benefits not only its customers but also its restaurant partners.

By partnering with restaurants, Swiggy enables them to reach a wider audience and increase their revenue without incurring any additional marketing costs. Swiggy’s Delivery Partners:

Swiggy works with a pool of delivery partners who pick up food orders from restaurants and deliver them to customers.

These delivery partners work on a flexible schedule, allowing them to earn extra income while ensuring timely and efficient deliveries. Swiggy’s App and Menu Options:

Swiggy’s app allows customers to easily browse menus and check prices to place their food orders.

The app also offers a range of options like filtering restaurants based on customer reviews and ratings and providing recommendations for new restaurants. Swiggy’s app also simplifies the payment process, with options for online payment and cash on delivery.

Swiggy’s Business Growth and Expansion:

Since its founding, Swiggy’s business has seen significant growth and expansion. The company now operates in over 500 cities in India, and its daily order volume has increased to over 14 million orders per month.

Its cloud kitchen concept, Swiggy Access, has also gained popularity among restaurant partners, with many expanding their operations through Swiggy’s platform. Conclusion:

In conclusion, Swiggy’s innovative business model and technology platform have revolutionized the online food delivery industry in India.

As the country continues to embrace digital technologies, Swiggy’s value proposition of convenience and accessibility continues to make it a leading player in the delivery space.Swiggy is a leading online food delivery and ordering platform in India. The company has been growing at a rapid pace, thanks to its innovative business model and value propositions.

In this article, we will explore Swiggy’s customer segments and value propositions, as well as its revenue model and streams. Customer Segments:

Swiggy serves two primary customer segments: food delivery customers and grocery delivery customers.

Food delivery customers are typically urban foodies, students, and people who prefer online food ordering. Swiggy provides them with a convenient, customer-friendly app, a large selection of restaurants, and fast delivery times.

Grocery delivery customers are those who prefer to buy their groceries and other household items online. Swiggy provides them with the Swiggy Stores service, which delivers groceries, medicines, and other items directly to their doorstep.

Value Propositions:

Swiggy provides several value propositions that cater to its customer segments and help it stay ahead of the competition. These include:

Swiggy Go Services:

Swiggy Go is a service that provides instant pick and drop services to its customers.

Whether it’s a forgotten lunchbox or a last-minute gift, Swiggy Go has got you covered. Delivery partners pick up and drop items within minutes, making it the perfect solution for busy urban customers.

Swiggy Stores:

Swiggy Stores is a service that delivers groceries, medicines, and other items directly to customers’ doorsteps. The service is particularly useful for customers who want to avoid crowded supermarkets or do not have the time to shop for groceries themselves.

Swiggy Super:

Swiggy Super is a membership program that offers free delivery and surge pricing protection. For a fixed annual fee, customers can enjoy unlimited free deliveries for a year, regardless of the order size.

Swiggy Super also provides protection against high demand periods, ensuring that customers are not charged higher delivery fees during such times. Delivery Competency:

Swiggy has a fleet of 45,000 active delivery partners who ensure that orders are delivered promptly and efficiently.

This delivery competency is a crucial value proposition for Swiggy, as it helps the company stand out in a crowded market. Restaurant Partnerships:

Swiggy’s app provides restaurant partners with an easy-to-use interface, allowing them to connect directly with customers and receive orders directly through the app.

This helps restaurant partners increase their revenue and reach a wider audience. No Minimum Order Policy and Efficient Online Payment System:

Swiggy’s no minimum order policy and efficient online payment system make it easy for customers to order food online without any restrictions or minimum order amounts.

This value proposition makes the ordering process more convenient for customers, encouraging them to use Swiggy’s services more frequently. Revenue Model and Streams:

Swiggy has a diverse revenue model that includes several streams.

These include:

Delivery Charges:

The company earns revenue from its delivery charges, which are applied to each order placed through its platform. Commissions:

Swiggy earns commissions from its restaurant partners for every order placed through its app.

This commission is typically a percentage of the total order value. Advertising:

Swiggy generates advertising revenue through banner promotions and priority listing of restaurants on its app.

The company also partners with Instagram to let its restaurant partners use the “Food Order” sticker, making it easier for customers to place orders. Swiggy Access:

Swiggy Access generates revenue by offering ready-to-use kitchen spaces to restaurant partners.

This concept allows restaurants to expand their operations without the need for additional physical space, as orders can be prepared in Swiggy’s shared kitchens and delivered through its platform. Swiggy Super:

Swiggy Super generates revenue through its membership program, which charges customers an annual fee for unlimited free deliveries and surge pricing protection.

Swiggy Go:

Swiggy Go generates revenue through its concierge service, which allows customers to have items picked up and dropped off at their desired location. Affiliate Income:

Swiggy earns affiliate income through partnerships with financial institutions that offer credit card offers and other discounts to its customers.


In conclusion, Swiggy’s unique value propositions and innovative business model have helped it become a leading player in the food and grocery delivery industry in India. By serving two distinct customer segments and offering a diverse range of services, Swiggy has been able to attract and retain customers and generate revenue through multiple streams.

As the industry continues to evolve, Swiggy will undoubtedly continue to find new ways to innovate and stay ahead of the competition. In conclusion, Swiggy’s successful business model and value propositions have transformed the online food and grocery delivery industry in India.

By catering to different customer segments and offering a wide range of services such as instant pick and drop, grocery delivery, and free delivery memberships, Swiggy has revolutionized the way people order and receive their favorite meals and essential items. The company’s efficient delivery system and strong partnerships with restaurants have helped it maintain a competitive edge.

Swiggy’s ability to adapt to changing customer needs and embrace innovative technology has positioned it as a market leader. With its growing revenue streams and continued expansion, Swiggy is well-positioned to thrive in the evolving landscape of the delivery industry.

The key takeaway from Swiggy’s success story is the importance of understanding customer preferences and providing convenient solutions that enhance their overall experience. By prioritizing customer satisfaction and delivering on their value propositions, businesses can achieve remarkable success in the digital era.

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