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The food industry keeps on evolving with technology. Now, the way people are consuming is changing. At present, people are having delicious hotel food at home.
Even restaurants are more focused on online food delivery. Now there is no more hassle to get food from the restaurants. Food delivery has become a new norm.
Online food delivery systems made it possible to create new business opportunities. Even food delivery also attracts more people to order.
So, now within a few clicks, you can order food from your favorite restaurant. Even people are so busy to have food at the restaurant. Because in this busy traffic world, people just get frustrated to go out of dinner.
Sometimes, restaurant customer experience will be so bad due to less number of management staff. Even the food served are been delayed for a long time.
These all reasons are now boosting the trend of online food delivery. Now people are quite comfortable ordering food online.
Swiggy Startup had done so much to build trust with people to order food online. This startup gave a lot of discounts to attract more consumers. Swiggy had revolutionized the food industry.
In this blog, we will go through the Swiggy startup story. Even how Swiggy founders build the food ordering platform. So, here is a complete analysis of Swiggy success story. Here is a complete history
Swiggy Startup
Swiggy is a food ordering and restaurant aggregator platform. It is an Indian startup mainly based out of Bengaluru.
As the company, ties up with the restaurants for online orders. Then the company will charge per order from the restaurants.
Thus Swiggy’s startup is benefitting the restaurants and increasing orders. Eventually, the restaurants are getting more orders than ever before.
Swiggy startup was started in 2014 in Bengaluru. Then the startup has positively impacted the food industry. Now every restaurant is keen to partner with Swiggy.
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At present, Swiggy is operating across 500 Indian cities. Major cities like Bengaluru, Chennai, Hyderabad, Mumbai, Kolkata, and many more.
Shrisharsha Majety, Nandan Reddy, and Rahul Bothra are the founder of Swiggy. Thus, Swiggy’s founder builds a food delivery startup and benefits the restaurants. Besides, it is also creating employment in India.
Now, many people are finding livelihood from serving as Swiggy delivery boys. There are around active 200,000 delivery partners across India. So, this is the impact created by the Swiggy startup.
Swiggy receives nearly 1.43 million orders per day. This is the demand for food delivery space in India. Here Swiggy was successful in creating trust with the customers.
Swiggy startup story has mainly become successful from the founders of the company.
Swigyy made a revenue of around 2,776 crores in 2020. Still, the company is under losses because of its high technology-intensive service. It had reported nearly 3,768 crores of loss in 2020.
But in the future, Swiggy is going to be profitable. Because now the trend is changing and lifestyle is getting busy. So, even investors are also investing heavily into the startup.
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Swiggy startup story
Swiggy founders story is a bit unique. Because Swiggy is the second startup that they had started. Initially, the founders were are failed during the first phase.
Failure teaches the best lessons. It is true of the Swiggy founders. Even in that situation too, they were optimistic.
As they decide, to avoid the mistake and adapt key learnings from their failed startup.
Shriharsha Majety and Nandan Reddy were graduates from the BITS. Both were passionate about the startups. So, the duo quit their job and started the journey of entrepreneurship.
So, they were in search of an existing problem in society. Accordingly, they can build the startup to solve the problem.
At that time, E-commerce was booming. Every business had the opportunity to sell the products on the platforms like Amazon and Flipkart.
But many small businesses were not able to manage the logistics. To fulfill the orders, small business has to tie up with third-party logistic vendors. Still, the small business could not able cope up with the logistics.
Then, the problem came to notice of Shriharash Majety and Nandan Reddy. So, finally, they got the opportunity to build a startup for the existing problem in society.
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Founders
Thus both Shriharsha Majety and Nadan Reddy build Bundl in 2013. As Bundl helped the small business to improvise in the logistics section. Bundl had become the logistics aggregator platform.
Here any business can use the Bundl platform to fulfill the logistics services. Later, Bundl could not able to deliver the products at the right time. Ultimately, the platform was not able to provide a good customer experience.
The main reason for the failure of Bundl was not having a tech founder in the company. Both Shriharah Majety and Nandan Reddy were non-technical people.
So, they could not able find the glitch in the tech part. As in the logistic service, tech plays a vital role in tracking and shipments. So, the results were worst.
At the same time, E-commerce giants went on to launch their own logistics service. Even advised the seller not to tie up with the third-party services.
However, Bundle could not able compete with big giants like Amazon and Flipkart. Even the founder understood the situation. So, they went on to shut down the operation in 2014.
Foundation for Swiggy success story
During the logistics service, both Shriharahs Majety and Nandan Reddy came to know about the online food delivery opportunity.
Many restaurants were not able to deliver food over long distances. Even though there is a demand but restaurants were helpless.
So, both decided to start online food delivery businesses. But now they came to know about the need for a tech guy.
Because in this online food delivery business technology plays a key role. So, it is important to have a tech co-founder to manage the tech.
Finally, Shriharah and Nandan found their tech co-founder Rahul Bothra. He is an ex-employee of Mynta. As he was head in the software department and also from IIT Kharagpur.
In 2014, all the three founders Shriharsha Majety, Nandan Reddy, and Rahul Bothra started Swiggy. Then it became the most popular online food delivery platform.
Soon, Swiggy became a new sensation in the town. Everyone has loved the attractive discounts. Within 4 years of its launch, it crosses $1 billion of valuation and turned unicorn.
In 2021, Swiggy valuation stands out to be over $5.5 billion. So the Swiggy is evolving in every sector as well. It keeps on experimenting with new ideas Swiggy startup story becomes successful with the dream of its founders.
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Swiggy Business Model
The online food delivery space in India has higher opportunities to monetize the platform.
Swiggy commission
The main source of revenue, Swiggy earns is from Commission. For each order which is directed for Swiggy to any restaurant, a certain amount of commission is charged.
Even minimum commission rates vary from 15% to 20%. Sometimes, there are complaints from restaurants, for charging high commission rates. But Swiggy manages all the flaws and provides equal shares and tries to charge less commission.
Swiggy delivery charges
Another source of income, that Swiggy earns from delivery charges. For every order to be delivered, Swiggy charges a certain amount for the delivery charges.
Delivery charges depend on the distance and the time order comes in. If anyone orders food at peak hours the chances are more to pay high delivery charges. So, delivery charges are manipulated according to the demand.
To, save from high delivery charges take the subscription of Swiggy super. It is a special subscription for food lovers and can get free deliveries. Swiggy super subscription starts from as low as INR 249.
Swigyy cloud Kitchen
Now, Swiggy had become the second most popular food delivery startup in India. The first spot is occupied by its rival competitor Zomato.
So, there is a huge chunk of data of consumers with the Swiggy. Then obviously it has the advantage of understanding consumer behavior from the data.
Now, Swiggy is aware of the type of food and the rates where people are more likely to order. Even it knows the most popular food of certain areas as well.
From using this data, Swiggy has started its cloud kitchen in certain areas. There are mainly two advantages Swiggy cloud kitchen
- Firstly, there are no takeaways in the cloud kitchen. So, there is less requirement of the staff and space.
- Secondly, Swiggy knows the most popular dishes of certain areas with the data. So, it will have only have main recipes in the cloud kitchen.
Finally, Swiggy earns total profits from the cloud kitchen business. Here there is no game of commission. So, the chances of having more revenue are high.
Even it is not important to have a good location for cloud Kitchen. The only concern about the cloud kitchen is to maintain cleanliness.
Swiggy startup story has a lot of strategies and plans to become successful. So, these are plans to become profitable in the coming years.
Swiggy startup story Ads
Another stream, where Swiggy earns is from the promotion. Here Swiggy will promote the specific restaurants in its application. For the promotion, Swiggy will charge a certain amount of fees.
Some top-listed restaurants in the Swiggy app will follow the promotion strategy. Here restaurants will get more brand visibility and chances of getting more orders will also be high.
If the dishes are delicious from the promoted restaurant, then users will order the food from the same restaurant in the future as well. So, it is benefiting the restaurants to have more business.
Swiggy Instamart: Swiggy startup story
Now, users can easily order home essentials from the Swiggy app. Here, Swiggy has expanded its services into the grocery space as well.
During the pandemic and post-pandemic, demand for groceries online is at an all-time high. Startups like Bigbasket, Gorgers, and JIO Mart made a lot of revenue.
So, Swiggy also planned to enter into the grocery delivery space. Even the acquisition of Suprdaily helped them to quickly scale up the business.
Now, Swiggy delivers home essentials within 15 to 30 minutes. It is successful because of its robust logistics chain. Even Zomato came to the grocery space but it could not sustain itself for a long time.
So, to compete with the Swiggy, Zomato made huge investments in Groffers.
Swiggy Genie: Swiggy startup story services
Swiggy is entering into every possible sector to make the firm profitable. The main factor for Swiggy’s expansion is its strong and flexible logistics services. It has one of the best delivery services.
Because it had started its journey as logistics services Startup Bundl in 2013. Now, Swiggy came to the sector of pick and drop services.
There is a huge demand for online services because of the busy schedule and post-pandemic situation. In pick and drop and services, Dunzo is serving people since 2014.
To compete with Dunzo, Swiggy entered the market. Now, Swiggy will deliver items from any stores as in pick and drop services.
So, it is high time for Dunzo to compete with the giant Swiggy. Even Dunzo had got funding from Google as well. It is one of the startups where google solely invested in the firm. So, Dunzo want to make strategies, to give a tough fight against Swiggy,
In this way, Swiggy become the most popular online food delivery startup in India. Swiggy founders Shirharsha Majety, Nandan Reddy, and Rahul Bothra played a vital role in the success story of Swiggy.
Swiggy is also planning for its IPO in the coming year of 2022. It might become one of the highest valued IPOs in India. Even Zomato has raised over 7000 crores in its IPO 2021.
Swiggy startup story is inspiring for all the evolving startups in India. There is a lot of strategic moves from Swiggy for its success. How the founders recognize the problem and bring relevant solutions.
Even Swiggy founders apply the learnings from their Failed startup Bundl. Then the founders were optimistic and always look forward to the opportunity to create a revolutionary business.