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The online food delivery market in India was valued at INR 45.58 Bn in 2017 and is
expected to expand at a compound annual growth rate (CAGR) of ~38.08% from 2018 to
2023.
This growth has triggered a massive influx of investments into online food delivery services
such as Swiggy which has raised $1.31 billion in three rounds during 2018.
Zomato, which leveraged its large base of restaurants in the country, launched its food
ordering service ZomatoOrder in April 2015.
The recent innovations in the global market are:
Mobile ordering
iPad order kiosks
Facebook ordering
Tabletop e-waiter & checkout
Digital menu boards + smartphones
Demand Drivers
• 1. Encouraging Demographics
• 2. Promising Income & Consumption Levels
• 3. Favourable Lifestyle Changes
• 4. Rising Number of Working Women
Supply Drivers
• Chef’s Onboard
• Retaining Customers
• Food Standardization
• Pricing
• Earning Higher Profits
• Managing Logistics
• Freshness of Food
• Type: Private
• HQ: Bangalore, IN
• Founded: 2014
• Website: www.swiggy.com
• Tagline: When you are hungry think of us
• Mission statement: Change the way india eats
• Swiggy was founded in August, 2014 byNandan Reddy,
SriharshaMajety& Rahul Jaimini.
• Ordering food online & providing delivery solutions at your doorstep
from the best restaurants in your neighborhood.
• Accepts online payments for all orders with no minimum order policy.
• Has own fleet of delivery personnel
SWIGGY’S BUSINESS MODEL
SWIGGY SWOT ANALYSIS
Strengths
• Quick Delivery
• Good brand image
• Trained delivery personnel’s
• Responsive customer support
• Wide range of restaurants offered
Weakness
• Location based restaurant finder
• Marketing, Brand awareness
• Delivery charges for orders below Rs.250
• Menu and App price difference
• Opportunities
• Pioneer in food delivery business
• Growing market
• Increasing market share
• Minimal competition
• Lack of market leader
• Threats
• Unstable and low customer base
• Increasing health consciousness
• Increasing potential competitors
• Laws and government regulations
• Zomato is an Indian restaurant search and discovery service founded
in 2008 by Deepinder Goyal and Pankaj Chaddah. It currently
operates in 24 countries.
• Acquisitions
• Zomato has acquired 12 startups globally.
• Investments
• In October 2018, Zomato raised $210 million from Alibaba's payment
affiliate Ant Financial. Ant Financial received an ownership stake of
over 10% of the company as part of the round, which valued Zomato
at around $2 billion. Zomato had also raised an additional $150
million also from Ant Financial earlier in 2018.
• History
• The restaurant search and discovery platform began its operations
under the name, Foodiebay. In November 2010, the brand was
renamed as Zomato.
• By 2011, Zomato launched in Bengaluru, Pune, Chennai, Hyderabad
and Ahmedabad.
LITERATURE REVIEW
• Growth of Food Tech: A Comparative Study of Aggregator Food Delivery
Services in India
Mr. Mustafa Abbas Bhotvawala, Nishant Bidichandani, Harsh Balihallimath and Dr. M. P. Khond. (2016)
• The study compares growth and operating strategies of four such aggregator
food delivery companies in a booming Indian market (Swiggy, Zomato,
FoodPanda, and TinyOwl).
• A combined result of a SWOT analysis along with a comparative analysis of
models found that there are a few bottlenecks to early food aggregator
services.
• a) Scalability
• b) Innovation
• c) Cash-burn
Innovative strategies of startup firms in India - A
study on online food delivery companies in India.
Dr. vijaya Lakshmi kanteti (2018)
• This paper discusses and analyses the type of online delivery service
models of four different companies like swiggy, zomato, food panda
and Fassos.
• Full customer transparency: Food delivery companies will have to be
able to match their level of service and transparency, via Smartphone.
In addition, they help businesses optimizing routes and managing
their fleet in real time.
• Drone delivery: The top most valued, unexplored and toughest model
is the home cooked food model. This is truly where the greatest
potential lies and innovation can spin off this industry in a wholly new
direction.
Key Success Factors of Online Food Ordering Services: An
Empirical Study
Zulkarnain Kedah , Yusof Ismail, A.K.M. Ahasanul Haque & Selim Ahmed (2015)
0% 0% 0% 0%
10%
15%
90% 85%
Q. What is your gender?
Zomato Swiggy
Male Female Male Female
25%
35%
65%
75%
Q. What is your education level?
Zomato Swiggy
High school & below senior secondary Graduation Post Gratuation& above High school & below senior secondary Graduation Post Graduation
0% 0%
7% 8%
13%
25%
68%
79%
Q. Do you order food online, if yes from which
company do you prefer?
Response No’s
Zomato 20 (50%)
Swiggy 20 (50%)
Total 40
Q. On the scale of 5, how much are you satisfied
with food delivery service provider?
Zomato Swiggy
1 2 3 4 5
1 2 3 4 5
0% 0% 0%
0%
6% 5%
25% 28%
67%
69%
Q. Would you recommend others to buy food
online?
Response No’s
Yes 40 (100%)
No 0 (0%)
Total 40
CHI-SQUARE TEST
Asymptotic Significance
Value df (2-sided)
Pearson Chi-Square 2.170a 4 .705
Likelihood Ratio 3.481 4 .481
Linear-by-Linear Association
1.351 1 .245
N of Valid Cases 40
Relationship between Education and Satisfaction level:
• H0= There is no relationship between Education and Satisfaction level.
• H1= There is relationship between Education and Satisfaction level.
Chi-Square Tests
Asymptotic Significance
Value df (2-sided)
Pearson Chi-Square 7.565a 12 .818
Likelihood Ratio 11.083 12 .522
Linear-by-Linear Association
1.117 1 .291
N of Valid Cases 40
Relationship between Gender and Satisfaction level:
• H0= There is no relationship between Gender and Satisfaction level.
• H1= There is relationship between Gender and Satisfaction level.
Chi-Square Tests
Asymptotic Significance
Value df (2-sided)
Pearson Chi-Square 1.663a 4 .797
Likelihood Ratio 2.285 4 .684
Linear-by-Linear Association
.028 1 .867
N of Valid Cases 40
Paired Sample T-Test
• Small sample size: The sample size was only 40 respondents which a very
small size to base a research and give conclusion about the industry.
• Time and correspondent bound: The research was conducted in a short
span of time
• and the respondents mostly comprised of students. The responses of the
respondents may be affected by some particular situation prevailing at
that particular time.
• Might get biased response: As discussed earlier that the sample size was
small also considering that the interview were conducted in a short span of
time, there is high probability that the respondents might have given
biased responses
REFERENCES
• Dr. vijaya Lakshmi kanteti, Innovative strategies of startup firms in India - A study on online food delivery
companies in India. (2018)
• Dr, Neha parashar ,Ms. Sakina ghadiyali, A STUDY ON CUSTOMER’S ATTITUDE AND PERCEPTION TOWARDS
DIGITAL FOOD APP SERVICES, Jan (2017) .
• Dr.Mitali Gupta, A Study on Impact of Online Food delivery app on Restaurant Business special reference to
zomato and swiggy , January (2019).
• H.S. Sethu, Bhavya Saini, Customer Perception and Satisfaction on Ordering Food via Internet, a Case on
Foodzoned.Com, in Manipal , July ( 2017 )
• Mr. Mustafa Abbas Bhotvawala, Nishant Bidichandani, Harsh Balihallimath and Dr. M. P. Khond. (2016). A
Comparative Study of Aggregator Food Delivery Services in India, September (2016).
• Mrs. I.karthika, Miss. A.Manojanaranjani , A Study on the various food ordering apps based on consumer
preference, (2018).
• Surayadev Singh Rathor, Mahik Chaudhary, consumer’s perception on online food ordering, December (2018).
• Warrington, T., Abgrab,N.J., & Caldwell, H. (2000). Building trust to develop competitive advantage in E-Business
Relationships. In Competitive review ( 160-168).
• Zulkarnain Kedah , Yusof Ismail, A.K.M. Ahasanul Haque & Selim Ahmed, Key Success Factors of Online Food
Ordering Services:An Empirical Study , July (2015).
• Website references (www.swiggy.com, www.zomato.com, www.foodpanda.com, www.ubereats.com)
• Websites for Numerical data (www.crafts.co, www.mckinsey.com)