Zomato

Swiggy is a food ordering and Delivery Company based out of Bangalore, India. Zomato is an Indian restaurant aggregator and food delivery start up founded by
Swiggy was inspired by the thought of providing a complete food ordering and Deepinder Goyal and Pankaj Chaddah in 2008. Zomato provides information, menus
delivery solution from the best Neighborhood restaurants to the urban foodie. and user-reviews of restaurants, and also has food delivery options from partner
Swiggy is a food delivery application. It allows the users to access their application restaurants in select cities. Zomato is also entering into grocery delivery amid
from Android, IOS, and website, to order food from nearby restaurants, delivering at the Covid-19 outbreak. As of 2019, the service is available in 24 countries and in
Introduction an estimated time of 30 minutes at the doorstep. They partner with restaurants, more than 10,000 cities.Zomato is not only in the food business. like Google &
have delivery services, and provide ratings that help the customer in picking eateries Facebook they are all into the advertising business. Zomato has two parts, One
accordingly. At the time delivery of an order, a customer is entitled to give feedback, delivery business and two they are in the advertising business.
rate the food and the delivery services, which help the application, give the customer
the best experience by gathering all data.

▪ Swiggy is a food ordering and delivery company Tagline/ Slogan - Discover great places to eat around you
▪ A single window for ordering from a wide range of restaurants
▪ Exclusive fleet of delivery personnel to pickup orders from restaurants and deliver it menus, pictures and map locations
to customers
restaurants

restaurants & food guide

Quick Delivery
• Good brand image
• Trained delivery personnel’s
• Responsive customer support
Strengths • Wide range of restaurants offered
 • Pioneer in food delivery business Opportunity to expand to further more countries
• Growing market
• Increasing market share
Opportunities
• Minimal competition
• Lack of market leader

• Location based restaurant finder

Weaknesses • Marketing, Brand awareness
• Delivery charges for orders below Rs 250
• Menu and App price difference

• Unstable and low customer base Intense competition.

• Increasing health consciousness
Threats • Increasing potential competitions the business model
• Laws and government regulations

To revolutionize the restaurant-takeaway-delivery business in India Helping people discover great places around them
▪ Reliability and consistency in service
▪ Evolve as a leading marketplace
▪ Increase market share
Goal
▪ Increase brand building and marketing campaigns
▪ Achieve more than break even in the existing cities
▪ Expand to six new cities in the next one year

Key Business Units

- Operations
- Marketing
Key Business Units - Fleet management team
- Customer care team
- Analytics and Market research team

▪ Time efficiency, the need of the hour.

▪ A service which is desired by many.
▪ A single window for ordering.
▪ No delivery charge if the order exceeds Rs 250.
Value Proposition
▪ Quick delivery and Responsive customer care
▪ Collaborators – are handsomely paid + Incentives
▪ Company – positioning - market niche
 ▪ PODS – (point of Distinction)
- Different Business model
-Quicker delivery time
- Private fleet
- Variety of modes of payment accepted
- COD available
Positioning Strategy
▪ POPS – (Point of Parity)
- Similar service
- Similar restaurant listings
- Unstable market base
-Branding techniques

▪ Product – Food delivery app, Lightning quick delivery, hassle free, different modes
of payment
▪ Service – Delivers food from among the listed restaurants, COD available, Time
saving.
▪ Brand – Swiggy+ logo – premium, out of the box design, aggressiveness portraying
TACTICS
company policy.
▪ The urban dictionary throws the meaning of the word 'swiggy' as something
unbelievably legit and real.
▪ Slogan: When you are hungry, think of us!

Price – Orders below Rs 250 will attract an additional delivery charge of Rs 30.
▪ Orders above 250 will not attract any delivery charges
▪ If the order was placed during the time of an unfavorable climate, an additional fee
of Rs 20-30 shall be levied. Eg: Rain
▪ The App will be provided as a free version as well as a Premium version

Free V/S Premium

▪ The free version of the app will provide basic services to the consumer.
▪ The app can be downloaded from any of the app stores
▪ The premium version of the app could be upgraded to by paying Rs 2999
▪ This will guarantee an assured delivery time, Enhanced and bigger list of restaurants
from other localities as well
▪ Unlimited amount of the aforementioned offer will be valid till lifetime
 Implementation
▪ Infrastructure –
An order will be first placed by the customer through our mobile app
- This order will be directed to one of the onsite delivery executive
- He will go to the restaurant and pick up the order by making a virtual swiggy
payment
- He picks up the food and delivers it to the customer
- Fleet team will be managed by the operations department
- Analyst department and their functions
- Rating system for customer as well as for the delivery executive
- 360 Degree appraisal system for office staff
Processes –
-Client management and market research team will engage with potential
collaborators and fix the deal.
-The business unit will be looked after by GM’s of various departments
- under them, there are local managers > team players > Delivery executive
- Finance, strategy, product management teams work in tandem to introduce newer
products
-Technology team – engineers will work on app based improvements

How Swiggy Make

Money
 Swiggy typically charges a 15% – 25% commission on the order bill amount received Zomato charges anywhere between 10%-15%* depending on the service provided
by the restaurant. This commission is charged on the full bill amount which is and the area. For instance, if a restaurant lists exclusively on Zomato for online
inclusive of the Goods and Service Tax charged over and above the menu price. ordering, they pay 7%-8%, while if they choose to work with others as well, the
commission goes up to 12%. And if Zomato also provides its delivery fleet to deliver
Swiggy continuously tries to get restaurants on board to be available on Swiggy the orders, the commission can reach up to 18%.
exclusively. On this account, certain benefits are given to restaurants like greater
visibility and sometimes a drop in the commission of about 2% – 3%. But since the There are 3 commission bands set up by Zomato
resulting benefit is far more than the drop in revenue, Swiggy does this aggressively.
If the restaurant is top notch and very popular, they charge 7.5 % commission of the
Commission
The percentage of the commission depends on various factors like the frequency of sales coming from zomato. these are called P1 restaurant (Priority 1 ).
orders received, location of the restaurant, dependency of the restaurant on Swiggy, If the restaurant is moderately popular, they charge 10% of the sales coming from
percentage charged by competitors, penetration to a new city etc. zomato, these are called P1H and P2 restaurant.
If the restaurant is not so popular, they charge 15% of the sales coming from the
zomato. these are called P3- P12 restaurant.

Swiggy does not have a minimum order requirement for delivery which means that Zomato makes Money?
Swiggy often receives orders amounting to less than Rs 100. This increases the Advertising
logistics cost per order. Subscription
So, after Swiggy got a strong hold of the market, it started charging delivery charges Even Organization
Delivery charges
to low order amounts (depending and varying upon city to city). Delivery charges are Zomato Whitelabel
typically around Rs 20 for orders less than Rs 250. Swiggy sometimes also charges a Online Food Delivery
surge in delivery prices in times of high demand, rains, special occasions and midnight Zomato Consultancy
delivery in select markets. Zomato Gold
 Swiggy started earning advertising revenue via two models – Banner promotions and
priority listing of restaurants.

Swiggy recently started with Banner promotions to take a leaf out of Zomato and
Foodpanda’s books. Restaurants are promoted and displayed in their app and
website pertaining to regions. Different regions on the displayed page vary in their
rates based on the visibility that the restaurant is to receive via the banner
promotion.

Advertising The only limitation is that Swiggy does not share customer data, so the restaurants
rely on generating raw revenue through higher visibility only.

Swiggy typically displays a list of available restaurants to the customers. It has tapped
this very potential into a revenue stream by charging a premium from restaurants in
return of giving priority listing to the restaurants. Higher up the list the restaurant is
displayed, higher is the cost the restaurant has to pay.

This additionally helps in pushing customers in ordering above the threshold to avoid
paying delivery charges.

Swiggy has started its own restaurants which are prominently displayed on the
application and website with the highest amount of visibility you can imagine. This
Restaurants
started in Bangalore and is said to be replicated soon in markets like Mumbai and
Hyderabad.

Swiggy has recently launched Swiggy Access, a central kitchen base-like facility which
houses kitchens of different restaurants including Swiggy’s private labels. This cloud
kitchen model will help restaurants to set up kitchens in locations even where they
are not present.

Launched in Bangalore last year, it has expanded to include 30 restaurants with 36

Swiggy Access
kitchens in new cities including Kolkata, Delhi, Mumbai and Hyderabad.

This inter-city model is expected to be a game-changer for penetration into tier 2 and
tier 3 cities
Currently, In Markets where it is launched, about 8% - 25% order volumes comes via
Access kitchens. Restaurant on Access have to pay higher commission than the
existing average commission that the platform charges for delivery only.
 Swiggy has recently launched Swiggy Super which is a membership program for
customers. It offers unlimited free delivery on orders above Rs 99 and no surge
pricing for which the customer has to pay a fixed amount
Swiggy Super
Available options include a one-month membership for Rs 149 and a 3-month
membership for Rs 349 which are being offered at an introductory price of Rs 49 and
Rs 129 respectively. This amount in addition to the repeat orders Swiggy expects
through this membership program is expected to increase revenue.

Besides the core business practices, Swiggy also makes money in the form of affiliate
income by referring credit cards to its customers. The company has partnered with
financial institutions and banks like American Express, Citibank, ICICI bank, HSBC, etc.
Affiliate Income to sell their credit cards to the customers.

Customers see the credit cards offers on the order tracking screen.

Payments and incentives to delivery partners (the amount varies according to the
experience, place of operation, and the number and time of delivery)
Application and website development charges
Application and website maintenance charges
Salaries and provisions to full-time employees
Sources Of Expenses
Administrative costs
Advertising and marketing costs
Benefits given to customers in the form of offers
Returns and refunds
Miscellaneous expenses

“The competition is so intense right now among restaurants that nobody wants to be left out in any medium where they
can generate orders. At this time Zomato and Swiggy are the mainstays of almost all strong places for their orders
especially in non-peak hours,”