The Spicy Growth Of Swiggy
Swiggy is an Indian online food ordering and delivery platform. It was started in 2014 and is based in Bangalore. Now it is operating in more than 500 cities in India. It also delivers groceries in the name of Swiggy Instamart and an instant package delivery called Swiggy Genie.
How was Swiggy started?
Three friends named Sriharsha Majeti, Nandan Reddy, and Rahul Jaimini are the founders of Swiggy. Sriharsha and Nandan Reddy completed engineering at the Birla Institute of Technology and Science, Pilani. While Rahul has completed his studies at IIT Kharagpur. Sriharsha worked in a bank for one year after completing his education. He had a desire to start his own start-up so he resigned from his job at a bank.
He initiated the idea and collaborated with his friends. They started their own logistics company Bundl, which didn’t last long. They closed the company in 2014. After this failure, they did some research and planned to start an online food delivery business. In August 2014, Bundl was turned into Swiggy. At first, they appointed only five delivery boys.
Growth of their business:
The start-up made a good change in food delivery and they gained big returns from it. They followed some basic rules to success like on-time delivery of food and no minimum order policy. In eight months, they got funding from two ventures, Accel partners and Saif partners, of around $2 million. “The rest is history”.
The company is growing and developing every month. More than 1,28,000 restaurants are tied up with Swiggy and 20,000 delivery boys are working as of now. The turnover in the year 2020-2021 is ₹2,145 crores. They also provide gift coupons and discounts for customers.
Market share of Swiggy:
As of now, 65 food tech companies are operating in the country. The main competitors are Zomato and Food Panda. Swiggy is making almost 35-38% market share in food orders and grocery delivery. Zomato stands next to it with a 25-30% share.
How does the company earn?
For every order, it earns a commission from the restaurant with which it is tied up. Minimum commission rates vary from 15% to 20%. Sometimes there are complaints about charging for high commission. However, it manages all the flaws and provides an equal share with less commission.
Another way of earning is from delivery charges. For every delivery, some money is charged. It depends upon the distance and the time order comes in. It has also a subscription package, by using it one can get free food deliveries. Subscription starts from ₹249.
Awards and recognition:
- It won the Economic Times start-up award in 2017 as the best start-up of the year.
- Recognized at Star Re.Imagine awards for its tagline ‘No Order too Small’.
- It won the Outlook Social Media award in 2016.
- It is also known for achieving Unicorn status in just 4 years since it was founded.
Future prediction on the company:
Swiggy is planning to launch Swiggy Bazaar, a social commerce business in a couple of months.
- Swiggy is piloting a direct ordering product. Swiggy Direct is in Mumbai and has entered into agreements with restaurant partners for the program.
Becoming successful is not an easy thing. It requires a lot of hard work and patience. The efforts of these friends helped them in making Swiggy stand out as the country’s largest food aggregator.