so many people do not know how does Swiggy makes money. I have done my own research on Swiggy business model.
and particularly on revenue model of Swiggy.
well, today I will discuss the following things in a very simple and easy way:
You can also use this technique to start your own online food delivery platform just like Swiggy, foodpanda, zomato etc.
and you can also earn a lot of money just like them. There are so many cities where they have not reached yet.
so you can use this opportunity to get success in those cities easily.
1. commission from the restaurant:
- For every order, Swiggy charges around 15 to 20% commission. some time this commission varies.
- If Restaurant provides food to Swiggy only ( exclusive) then they provide them with a discount of 2 to 3 %.
2. Swiggy own restaurants:
- Swiggy has also started their own restaurant to increase its overall profit.
- Because of own restaurants, they are able to provide better and quick services.
3. Swiggy Access:
Swiggy access is a warehouse type things where they provide a kitchen to almost 5 restaurants in one place.
The purpose of doing this is to meet the demand of consumer in those areas where supply is low but demand is very high.
- In this, they charge a higher commission. but the company didn’t reveal the exact amount.
- centralize kitchen help then in reducing the delivery time up to 5 minutes.
4. Earning through Ad:
Swiggy charges money from restaurants to show their ad on their app and to increase their visibility on app and website.
by 2020 the 25% of the revenue of Swiggy will come from Ad only, reported by economic times.
5. Swiggy Membership program:
Swiggy provides unlimited free delivery, no surge fee during rain and high demand on all orders above RS 99.
If you pay a membership fee of Rs 49 for 1 month and Rs 129 for 3 months.
- so many people have opted for this service and it helps them in increasing their revenue by a significant amount.
6. Earning through interest:
Whenever someone pays the amount for the order then those amount goes to Escrow (It’s a 3rd party account).
This escrow holds the amount for 7 days and then give it to the respective restaurants.
- Using this 3rd part Swiggy earns interest on this money for holding it for 7 days.
Swiggy is an online food delivery platform that let the restaurant to list/mention their business on it and provide the menu with pricing.
It helps the restaurant to increase its profit without doing any hard work.
In return Swiggy charge commission as I mentioned above.
customer when visiting the app or website gets an option to select the restaurant based on nearby location. Then order the food item from their menu.
The customer can also choose the food first then select the restaurant in which that food is available
- You can also choose those restaurants who are far away from your location but the delivery time will increase.
After the order, the delivery boys of Swiggy get the message and location. Only Those delivery boys get message who are nearby to the restaurant.
- This delivery system is completely owned and run by Swiggy.
And then delivery is been done within 30 min.
Swiggy keeps the money of order and everything and after a week they give the money to the respective restaurants.
That’s the whole process of how does Swiggy works.
Swiggy business model
Swiggy business model canvas:
you can download the image also by right click and select save image as in Desktop
In mobile do a long press on the image and then you will get the option to save it.
Following things are mentioned in the image in very details:
- Revenue stream ( revenue model of Swiggy)
- Cost structure
- Key activities
- Key resources
- Key partners
- Value proposition
- customer segment
- customer relationship
Here is the same business model in another simple format: