Swiggy app

Swiggy is an Indian takeout O2O platform, founded in 2014, launched delivery delivery services in more than 50 cities in India, and the business model is similar to Meituan, that is, by setting algorithms to optimize delivery routes and shorten delivery time. The distribution team is mainly motorcycles, and some will use bicycles.

Swiggy introduced

With the continuous progress of science and technology and the accelerated development of globalization, the food and beverage take-out industry has risen rapidly around the world in recent years. In India's food delivery market, Swiggy has achieved huge growth in a short period of time with its unique business model and efficient logistics system, and is known as India's version of "Meituan" food delivery.

Company profile

Swiggy is an online food ordering and delivery platform based in Bangalore, India, founded in 2014 by three founders, Nandan Reddy, Rahul Jaimini and Sriharsha Majety. According to Swiggy's website, the company currently has more than 5,000 employees and 260,000 delivery personnel, operating in more than 500 cities in India, working with more than 150,000 restaurants and serving more than 86 million users. In addition to food and beverage delivery, the platform also offers an on-demand grocery delivery service called Instamart, and a same-day package delivery service called Swiggy Genie.

Since its inception, Swiggy has received a lot of attention from the capital markets, and its investors include well-known investors such as SoftBank, Prosus and Accel. After 16 rounds of funding, the company's valuation peaked at $10.7 billion in early 2022. According to the latest evaluation by the American asset management company Invesco in July 2023, Swiggy's valuation was adjusted from $5.5 billion at the beginning of 2023 to $7.85 billion. How did this much-watched food delivery company get started, and how quickly did it become a unicorn? Let's go back to the beginning of the story and trace the original intention and entrepreneurial journey of the founders of Swiggy.

Reasons to choose Swiggy

Market positioning: hyperlocal distribution platform with "no starting price"

At present, in addition to online food delivery services, the Swiggy platform also provides a number of other services around distribution: 1) Swiggy Instamart, an instant grocery delivery service, provides users with fast delivery of daily necessities and groceries; 2) Swiggy Genie - a local Courier service (similar to errands and flash deliveries) through which users can send or receive packages, etc. 3) Swiggy Super - Membership subscription service, providing users with free shipping and other promotional activities; 4) Provide online platform services, advertising services and brand incubation services for merchants.

Comparing with Zomato, Swiggy's biggest competitor, we can find that the market positioning and development strategy of the two are very different. Originally positioned as a restaurant listing directory, Zomato was already a leader in food technology when Swiggy entered the crowded circuit of the food delivery market. The company's core feature is its extensive menu range and provides location, ratings, reviews, images and other information for almost all restaurants, making it easy for customers to search for restaurants near their location.

As a latecomer, Swiggy successfully transformed itself into the fastest growing unicorn in 2018, achieving scale in a short period of time. This is mainly due to the fact that Swiggy has been positioned as a "hyper-local distribution platform" since its inception, and has focused on building an extensive logistics network and building supply chain systems. Like Postmates and Uber Eats in the United States, Swiggy operates a "no starting price" business model, with its sales proposition centered on timely on-demand food delivery with no minimum order requirements. "We want to be the fastest delivery platform in the hyperlocal market to reduce unnecessary travel for consumers," Swiggy COO Vivek Sunder said in an interview. Swiggy has its own delivery team, based on data algorithms and path tracking and other technical means, the average delivery time of each order on the platform is about 37 minutes, which is the shortest delivery time in India.