Swiggy Business Model How Does to Make Money

Swiggy Business Model How Does to Make Money
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Swiggy is a brand That needs no introduction. This company founded in 2014, Swiggy is based out of Bangalore, India. Today it has become a common household name for anyone who wants to food online.

They have created over 2,18,000 jobs and generated annual revenue of around 875 Crores in November 2019. As a march 2019, they have served food in around 400+ cities across India.

How Are they Actually Making Money?

A major part of Swiggy’s revenue comes from commissions, which they charge from their Partnered restaurants. They charge typically  15% – 25% commission on the order bill amount received by the restaurant. This commission is charged on the full bill amount(GST included)

The percentage of the commission depends on various factors like this number of orders, locations of the restaurant, the commission charged by competitors,ect.,

Swiggy Business Model How Does to Make Money

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Swiggy earns revenue through advertisement in 2 ways

1.Banner Promotions

2.Featured List

Swiggy Promotes restaurants by showing their banner to the customers according to their respective locations. They also feature of the respective location. They also feature the restaurants in their special featured list as a measure to boost their visibility and increase their orders. The higher up the list, the restaurant is displayed, the higher is the cost the restaurants have to pay. Swiggy Business Model How

Delivery Charges

This is another way to make money. Swiggy Charges a nominal delivery fee of Rs 20 to Rs .40 from its customers on orders below a threshold value of Rs.250.

Swiggy Raises the charges during high order demands, unusual weather conditions, Special occasions, and midnight delivery in selected markets.

This acts as a business strategy, as customers tend to order more than the threshold amount in order to avoid the delivery charge.

Swiggy Business Model How Does to Make Money

Swiggy Access

Swiggy Access is another variable of swiggy’s revenue funnel.

It is a cloud kitchen model provides ready to use kitchen spaces to its restaurants’ partners in those arrears where they don’t currently operate in.

Multiple restaurants operate in these kitchens. Restaurants on Swiggy access have to pay higher commissions than the existing average commissions that the platform charges for delivery only. Swiggy Business Model How

Affiliate income

Swiggy also makes money in the form of affiliate income by referring credit cards to its customers. Including banks like American Express, Citibank, ICICI Bank, HSBC,etc.,

Swiggy Super

Swiggy Super is another customer-generated revenue model of the company. It is a membership program for customers that offers unlimited free delivery on all orders above Rs99(now Rs.149) and no surge in pricing for which the customer has to pay a fixed amount.

The membership has two plans

1)one month @rs 149

2)Three Month @rs 349

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