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What Is Swiggy And How Does It Work?

Sriharsha Majety, Nandan Reddy, and Rahul Jaimini founded Swiggy.

Bengaluru, Hyderabad, Mumbai, Pune, Kolkata, the National Capital Region (N.C.R.), and Chennai have Swiggy.

It was founded to give clients a smooth ordering and delivery experience who wanted meals delivered to their homes. One may order from any nearby establishment with a few mouse clicks. You can also pay online or cash on delivery (C.O.D.) and track your delivery via the app or website!

Swiggy’s Business Model

Customer Segments at Swiggy

Consumers who do not want to buy food from restaurants or eateries are Swiggy’s consumer categories. People who want to purchase food online and have it delivered to their door are Swiggy’s major customers.

Thanks to its recent business expansion, Swiggy’s clients now include individuals who want to buy and have extra items delivered from nearby grocery stores, pharmacies, electronics stores, flower shops, and gift shops in the city.

Some of the stores now available on the Swiggy platform are Sodhi Super Marche, Garg Dastak, Best Basket, and V.M. Retail.

Value Propositions of Swiggy

Swiggy’s main selling feature is its policy of no limitations on orders and its speedy online payment system.

Swiggy does not require a minimum order for delivery, so orders for less than Rs. One hundred are common. As a result, Swiggy has expanded to 14 million orders every month.

Swiggy’s app provides simple Access to clients, a big value proposition for restaurant partners on the network. Swiggy’s Access also helps restaurant partners save up to 25% on their operational costs.

Swiggy Stores delivers groceries, flowers, prescriptions, and other products to customers’ homes in under an hour.

Swiggy Go

This service allows customers to deliver packages, lunch boxes to their children, documents to the office, and parcels to any location in the city. Swiggy Go also allows customers to drop off laundry or collect forgotten keys.

Swiggy Canvas’s business model

It allows eight different payment methods to make paying for Swiggy orders as simple as possible. There are three different kinds of these:

On the internet, there are wallets.

Paytm – Get a range of excellent specials and culinary bargains by using your Paytm account.
Pay with PhonePe, the world’s simplest digital wallet for online payments for maximum convenience.
Swiggy has added Freecharge as an online payment option to make things easier for its customers.

Mobikwik – By engaging in Mobikwik’s offerings, you can now earn SuperCash. So get ready to save a ton of money on a range of services.


Cards such as credit and debit are accepted. Swiggy’s net banking service accepts any debit or credit card. You can also receive great discounts on them and store your credit card details for future transactions.

Ticket Restaurants Meal, Sodexo Meal, and Zeta Food Card — Ticket Restaurants Meal, Sodexo Meal, and Zeta Food Card — Have you gotten your meal cards yet? Great! Use these to place Swiggy food orders.


Swiggy offers LazyPay to help you with your lazy payment moods, whether you want to pay now or later for your meals.
C.O.D. (Cash-On-Delivery) – Isn’t it true that “ancient” is better than “new”? Pay in cash if it’s more convenient for you.

Orders from Swiggy.

The company’s capacity to deliver is another advantage. It now employs 45,000 individuals in its delivery fleet.
It has nearly 20,000 active restaurant partners on its network.

Now has eight sites and has even set up a central cooking base facility for several restaurants. Swiggy’s app has over a million downloads.

Customer Relationships at Swiggy

Swiggy has a positive relationship with its customers. It provides active customer care 24 hours a day, 7 days a week, to help customers whenever they need it. It employs a service known as ‘Customer Support Chat.’

Also has active social media outlets to which it responds quickly. It has developed excellent rating, review, and feedback systems to stay in touch with its consumers and partners.

Swiggy’s Channels

Swiggy uses mobile apps, the internet, and digital marketing as marketing mediums. It is available on both Android and iOS as a mobile app.

Swiggy Stores and Swiggy Go were created in 2019 to expand their company beyond meal delivery.

The Most Valuable Assets of Swiggy

Local partners are its most valuable assets, as it has relationships with local restaurants and retailers.

Swiggy’s most popular restaurants include Biryani Blues, Keventers, BombayKery, Wok Paper Scissors, and Yogisthaan.

Important resources include delivery providers and internal human resources to manage administrative and technical operations. Technology is another resource it uses to run its apps.

Swiggy’s Main Functions

Its primary functions are as follows:

  • creating partnerships with restaurants and retailers
  • Recruiting delivery providers and suppliers (full-time, part-time, and freelance)
  • Obtaining consumers and maintaining a record of their orders
  • Assisting with delivery and payment procedures
  • Taking responsibility for the technical side of things
  • I.T. infrastructure development and system updates

Swiggy’s Most Important Partners

Swiggy has several major partners, including:

Restaurants and retailers

– Restaurants that desire to provide their customers with on-demand meal delivery services. Apart from restaurants, Swiggy’s key partners are businesses (such as pharmacies, grocery stores, and so on) who want to offer their products and services through Swiggy.

Big Partners

Grocery stores including Sodhi Super Marche, Garg Dastak, and Best Basket are Swiggy’s partners. It is now in exploratory talks to develop a relationship with various online pharmaceutical companies, including MedPlus, Medlife, PharmEasy, and Myra.

Social Media partner

Swiggy and Instagram have teamed up to allow companies to share Instagram’s food order sticker with customers on their stories. By touching on Swiggy’s website stickers, users can place comparable orders.

Swiggy’s Business App is available to restaurant operators.

Restaurant Owners: Swiggy’s Business App | Swiggy’s IOS App Store

The ones who make the deliveries are the delivery providers. They could be full-time employees or freelancers looking for extra money. Swiggy pays delivery boys Rs. 4 per kilometer for the first four kilometers. It pays Rs. 6 per kilometer once they have driven 4 kilometers. In addition, in unseasonal situations, such as rainy days, they get paid an extra Rs.20. Incentives are also given based on a person’s productivity.

Swiggy’s Partners’ Delivery App

The Cost Structure of Swiggy

Charges and expenditures are necessary for Swiggy’s day-to-day operations. The main cost sources are as follows:

Payroll expenses for workers and delivery partners. Swiggy’s incentives and bonuses for businesses are also included. For example, they were given a commission of approximately 2% to 3%.

Costs of application and website development

  • Fees for operations and maintenance
  • Administration, promotion, and marketing expenses
  • Expenses incurred as a result of promotional offers and customer benefits
  • Costs of installation and upkeep for a kitchen base facility
  • Refunds, returns, and other out-of-pocket expenses
  • Revenue Streams at Swiggy

Now, let’s get down to business: what is the most crucial question?

Revenue comes from a variety of sources.

We need to look at Swiggy’s revenue model to get a good answer. Swiggy’s revenue sources are steadily growing as it extends its business strategy and operations.

Swiggy now gets money largely through six revenue streams:

1. Delivery charges

Swiggy’s primary revenue source is its customers. On orders of less than Rs. 250, customers are charged a nominal delivery cost of Rs. 20 to Rs. 40. When there are a lot of orders or if the weather is bad, Swiggy raises the prices.

2. Commissions are paid

Swiggy makes a considerable amount of money from commissions. Restaurants are compensated in exchange for generating sales leads and having their meals delivered by Swiggy’s fleet. Restaurants must pay a 15 percent to 25% fee for every order placed through Swiggy’s website.

3. Promotion

Swiggy generates revenue through advertising in the following ways:

It uses banner promotions to promote and display advertisements for various restaurants on its app. Restaurants worldwide pay a charge to have their page is shown and profit from improved visibility through banner advertising.
Restaurant priority listing – Swiggy charges a fee to place restaurants at the top of the list of available restaurants. A restaurant must pay a fee to appear higher on the list.

4. Swiggy Access

Swiggy launched its Swiggy Access service, a brand-new concept based on the cloud kitchen concept. It provides ready-to-use cooking areas to its restaurant partners in locations that do not operate.

Swiggy allows restaurants to set up kitchens in new places and have food delivered as soon as possible to bring cuisine closer to its customers.

Swiggy is expanding its cloud kitchen idea to 30 restaurants with 36 kitchens in four more cities, with sales set to grow by 25% in two years.

5. Swiggy Super

Swiggy has created the ‘Swiggy Super’ customer loyalty program. For an indefinite period, this membership provides free delivery on all orders over $99. Customers who sign up for this service will not be charged surge pricing during high-demand periods.

6. Swiggy Go

It is a concierge service launched in 2019 to provide quick pick-up and drop-off service, is another source of revenue for the company.

Swiggy Go makes money by aiding customers with sending, picking up, and dropping off products at various locations throughout the city.

7. Affiliate Commissions

Swiggy makes money by partnering with banks, including Citibank, HSBC, and ICICI Bank. This affiliate revenue is a new but lucrative revenue stream that benefits both parties.

Those financial firms may also make multiple credit card offers to customers.


We’ve made it to the last part of the blog. Do you have any ambitions to establish a business comparable to Swiggy, UberEats, or even Zomato as an entrepreneur? There’s nothing to be concerned about. Whether you need an UberEats clone, Swiggy clone, Zomato Clone, or any other on-demand delivery business, we have the perfect clone script for you.

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