Business Model of Swiggy [Case Study]

Swiggy Business Model - Delivery Boy


Imagine a tiresome day where you are craving delicious food but you are way too tired to walk or drive into the restaurant. Thankfully, a modern solution to this problem exists! You can simply deliver the food online. One of those food delivery apps is “Swiggy.” The first thing that comes to your mind after hearing the term “Swiggy” is one of the best food delivery apps. 

Swiggy Business Model - Delivery Boy

You must have seen the delivery men of Swiggy here and there in the traffic and busy roads. Have you ever wondered how did they become so popular to establish their presence in almost every part of the country? The secret of their success lies in their business model and strategy. This written piece explains the “Business Model of Swiggy.”

Working Strategy

It operates on the dual-partnership model. In simple words, it is an online platform that performs the function of safe delivery of food from restaurants to customers like you. Isn’t it amazing?  

They have a mobile application where a large number of restaurants are registered (partnered) and the customer can order food from any of these restaurants of their choice. Then, the delivery partners pick up the placed orders (food) from that specific partnered restaurant and deliver them to the doorstep of the customer within the stipulated time. Thus, it is a kind of symbiotic relationship where all the parties i.e., restaurants, customers, and Swiggy get significant benefits.

  • Benefits of the restaurants– They get a greater number of customers which ultimately helps to increase their sales. Also, the restaurants do not need to use their efforts and costs to deliver the food.
  • Benefits of the customers– They get their favorite food on their doorstep which saves a considerable amount of time and energy. Swiggy provides 24/7 customer care services. It also has social media pages and a feature of “Customer Support Chat.” A rate, review, and feedback system are also available for each type of food from different restaurants. It helps the customers with the selection of food.
  • Benefits of Swiggy– It earns through delivery charges, commissions, and advertisements. 

Swiggy Working Model

Marketing Strategy

The following strategies have acted as the pillar for Swiggy’s distribution and helped build its reputation-

  • Digital Marketing – Being an online business, Swiggy heavily relies on digital marketing to promote its products and services to hit the target audience. It uses the following digital marketing products.
  • Search Engine Marketing Strategy– Suppose you type the term “online food delivery” on the search bar of google. What do you see? You will get a list of food delivery apps including Swiggy. Thus, optimizing its visibility on search engines is the core of digital marketing. It uses high-volume keywords in the content that effectively improve the rankings on the SERPs (Search Engine Result Pages). 
  • Social Media Marketing Strategy– This is the most effective way to promote the brand to the millennials. You might have seen funny posts and memes regarding food delivery apps. Swiggy effectively utilizes this strategy to create brand awareness in social media.
  • Campaigns– Do you remember the #SwiggyVoiceOfHunger challenge back in 2019 on Instagram where the customers got food vouchers for the whole year? This was one of the successful campaigns that helped Swiggy to enhance its followers by up to 40%.
  • Email Marketing– With email marketing, it gained its user base by 25%. Also, it successfully received a click-through rate of 7%. With the help of marketing automation and artificial intelligence, Swiggy is capable of sending more than 95% of emails directly to the inbox of users.
  • Offline Marketing– You must have seen large banners on road and advertisements for Swiggy on Youtube and television. These are part of offline marketing strategies. Offline marketing or conventional marketing creates brand awareness by hitting a broad range of audiences.

Partnerships & Channels

As you know the significance of partnership in the success of every startup, Swiggy worked successfully to create a broad network among its partners. It has many partnerships which help in the successful operation of the company:

  • Local Partners (Restaurant Partners): The restaurants and shops which prefer the delivery of food to the customers through Swiggy apps are the restaurant partners of Swiggy. It is the main resource of this app.
  • Delivery Partners: It comprises a group of delivery personnel i.e., the ones whom you see on the road with the logo of Swiggy. Their responsibility is to pick up the ordered food from the restaurant and deliver it to the hands of the customer. They have their administrative system. It employs more than 50,000 delivery personnel. They can be either freelancers or full-time employees. The delivery boys are paid INR 4.00 for the first 4km and INR 6.00 per km after the first 4km. Also, they get an extra INR 4.00 for delivering the items in harsh weather like rain or excessive heat.
  • Technology Partners: Expert technologists are one of the crucial parts of Swiggy. They handle the application of Swiggy (Swiggy App). An updated and advanced IT (Information Technology) system is essential to operate all the online tasks for the smooth functioning of the website. They helped to launch various channels of wiggy like Swiggy stores, mobile applications, Swiggy goes, and Websites through innovations and digital marketing.

Value Propositions

It is the key feature of the business model of Swiggy. Did you ever experience any hindrance while using Swiggy? Not! Because it does not pose any restriction on the users regarding the food orders. So, the key elements of the value propositions of this app are-

  • No restriction on minimum orders: You can avail of the food even if it costs less than INR 100.00 without any restriction. Due to this, Swiggy has more than a 10-15million orders every month.
  • Easy access: The customers and the restaurant partners can easily access the Swiggy app. It provides the best customer care service and also the restaurant partners save almost more than 25% on their operational costs.
  • Items: Other than the food, you can also buy multiple things like groceries, medicines, bouquets, etc. They will deliver it to your doorstep within a stipulated time. Not only this, but you can also track the food that you ordered.
  • Swiggy Genie: It is the latest launched service, where you can send parcels like packages, tiffin boxes, and documentary files to anyone across the city.

Mode Of Payments

Being an advanced platform, Swiggy is equipped with a wide range of payment systems. The flexible mode of payment helps you as well as the company to enjoy the services. The various modes of payment are-

  • Digital Wallets– This is a simple form of online payment system. Here, you can get exciting offers and deals by paying through digital wallets. For example- PhonePe, Paytm, Amazon pay, Freecharge, etc.
  • Cards– Swiggy has a net banking facility as well that supports payments through credit and debit cards.
  • Cash-on-delivery– This is one of the most admired options if you prefer offline payment through cash.

Revenue Systems

You must be wondering Swiggy gives so many benefits to its clients as well as its customers. But how does it earns the money? This company earns through the following revenue pathways-

  • Delivery Charges– Swiggy sets the delivery charges according to the situation normally it charges INR 20.00 per delivery and up to INR 40.00 in unusual circumstances like rains or storms.
  • Commissions– Swiggy collects nearly 15-25% of commissions from local partners for the delivery of each order. 
  • Advertisements– Swiggy promotes restaurants of different regains via display ads by charging fees.
  • Affiliate Income– It is a successful revenue system that it earns by partnering with financial institutions like ICICI and Citibank.


So, these are the secrets behind the leading food ordering and food delivery app in this nation. You might have observed how Swiggy changed the entire scenario of the eating habits of the people. It is the king of the food-tech market due to its highly effective business model.

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Published By: Supti Nandi
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