Unlocking the Secret: How Companies Like Swiggy Make Profits 

The world of online delivery of food started a long time ago, and there are many players like Uber Eats, Postmates, GrubHub, etc. And one of the most famous Indian food delivery brands is Swiggy.

Swiggy was founded in the year 2014, and it started as an innovative solution to the growing demand for food delivery services.

Swiggy has gone on to become India’s largest food delivery platform, and it has completely revolutionized the way people order food. Even though there was competition like Zomato in the market, they just focused on providing a seamless and convenient food delivery experience to their customers, which made it a market leader. 

But how do they earn? Have you ever asked this question or researched it? If yes, great, and if not, then that’s what we are going to discuss in this article. We’ll try to understand the business model of Swiggy money and how it actually earns.

Let’s get started! 

Business Model of Swiggy 

Swiggy’s business plan revolves around its innovative food delivery model, which the business model of Uber inspired. So, it relied on a dual partnership model: Restaurant partners and delivery partners.

Swiggy collaborates with numerous restaurants, both big chains and local eateries, to expand its offerings.

This is beneficial for restaurants as they increase their reach and customer base. The second partnership is the delivery partners. Swiggy operates a delivery fleet to ensure timely and reliable food deliveries.

So, it employs delivery executives to pick up orders from restaurants and deliver the food to the customers’ doorsteps. 

To promote its platforms, swiggy emphasizes customer satisfaction and loyalty, so it provides various discounts via coupon codes. Swiggy even has the best technology to operate its operations, like route planning, order tracking, and ensuring efficient and timely deliveries. 

How Does Swiggy Earn?

Now that we have understood the business model of swiggy, it’s time to hop into the most awaited question. How exactly does swiggy earn, and how many sources does it have? Let’s jump right into it. Swiggy has various sources of income, and those are as follows. 

• Commission from Restaurants: Swiggy charges a commission fee from the partner restaurants for every order placed through their platform. They usually charge a 15 – 20% commission on the order bill amount. 
• Delivery Charges: Whenever someone delivers something, we tend to deliver them some amount, too. So Swiggy has this option for the customers to deliver fees via the application. These charges contribute to Swiggy’s earnings as well. 
• Membership Programs: Just like every application has a membership plan, swiggy offers too. It has a subscription-based membership program called Swiggy Super or Swiggy Plus, which provides benefits like free delivery on every order and exclusive discounts. This is another source of income for Swiggy. 

• Advertisements and Promotions: There are various restaurants that pay Swiggy for increased visibility and promotion on the platform. They have two advertising revenue models: Banner promotions and priority listing of restaurants. In this, they display the list of best restaurants to the customers so that they can directly click on it without researching for other restaurants. The more they pay, the higher up the list the restaurant will be displayed. 
• Cloud Kitchens: Swiggy has entered into the cloud kitchen business called Swiggy Access. In this program, swiggy provides partner restaurants with the infrastructure to set up virtual kitchens in strategic locations. These kitchens are designed for efficient food preparation and delivery. Restaurants can even use Swiggy Access to expand their menu and reach a broader customer base. Swiggy even offers analytics and insights that directly help restaurants optimize their menu, pricing, and operations, leading to more profitability. 
• Grocery and Essential Deliveries: Swiggy has also entered into the business of delivering groceries and essential items to further expand its revenue streams. So customers can easily order groceries, and they’ll get delivered to their doorsteps. 
• Swiggy Genie: Swiggy Genie is another service offered by Swiggy, where India’s leading food delivery platform goes beyond food delivery. Users can place orders for a wide range of items, including groceries, medicines, documents, and more. They even assign a delivery executive who picks up the requested items from the specified location and delivers them to the user’s doorstep. The user interface, too, is super friendly, which automatically increases the retention rate of the users. Lastly, their service too is super fast as they deliver it within the same day. This was the final source of income for Swiggy. 

Conclusion 

The rise of technology has been making our world a safer and more comfortable place. Twenty years back, no one would have thought that we could have a smartphone where we could just order food online, which would get delivered to our doorstep within minutes.

It’s crazy how the world is moving forward, and there are still a lot of surprises waiting for us in the future to make our lives easier. 

In this article, we discussed the business model of Swiggy, which is the leading food-delivery application in India.

We also discussed the various sources of Income for Swiggy and got to know about it. We hope this article was informative for you.