Project Report

On
Market Research & Competitive Analysis of Online Food
Delivery App - SWIGGY

SUBMITTED BY:
MEDHANA BHATT
SnO Intern (SWIGGY)

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 TABLE OF CONTENT

S.NO PARTICULARS PAGE NO.

1. EXECUTIVE SUMMARY 3-4
2. INTRODUCTION 5
(SECTOR)
3. ORGANIZATION 6-7
REVIEW, SWOT
4. INDUSTRY ANALYSIS 8
5. COMPETITOR ANALYSIS 9-13
6. ANALYSIS GRID 14-15
7. SUGGESTION 16

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 Executive Summary
Initially in 2014, the temporary position was pointed towards the dispatch of the Bangalore's
freshest online Nourishment Requesting Application, SWIGGY. The fundamental destinations
of this entry level position were-

• Identifying the Intended interest group.

• Where to discover the Intended interest group.

• How to contact them in the best way.

Everyone was given 3 regions to work upon and understanding the purchaser conduct and
sustenance requesting examples of people. The temporary job likewise goes for increasing
exhaustive comprehension of Swiggy item separation from contenders and energizing elements
in the Swiggy Application.

The underlying period of temporary job manages the planning of poll for the centre gatherings
and afterward connecting with them and making them go through various researches and
studies. The following stage included contender’s examination of the organization and their
different promoting systems and SWOT investigation initially.

Study was readied in view of specific parameters, for example,

• Age bunch
• Preferred mode of ordering food.
• Frequency of requesting nourishment
• Average sum spends per meal.
• Preferred Restaurants.
• Entertainment inclinations
• Preferred cuisines

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This report covers various aspects that includes the market research and competitive analysis
of food delivery app Swiggy. This study is completely based on the secondary data and the
sources are mentioned in the bibliography part. Apart from that the study has also covered the
analysis of the influencing situation of the competitors of Swiggy. The considered competitors
which are included are:

Zomato Uber Eats

Food panda

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 INTRODUCTION

Introduction (Sector)
Nourishment conveyance market in India worth more than US$8,167, online sustenance
conveyance is contributing more than 15% every quarter to this business sector. More than
70,000+ eateries in India gives home conveyance, demonstrates a high potential and
undiscovered business sector in online sustenance conveyance space.

Players in the business extensively characterized into three classifications -

 Fully incorporated: The individuals who process sustenance and conveys (Dominos,
McD and so forth)
 Delivery as an Administration
 Aggregators: Gives a stage to clients where they could find eateries, explore through
menus of various cooking styles, and select the sustenance. Conveyance made by the
eatery. So, totals data about sustenance for clients and capacity as a request creating
channel for eateries. (Uber Eats, Zomato, Food Panda etc.)

Purposes behind development in online nourishment conveyance industry:

 Increase in discretionary cash flow and more profound web infiltration of clients
(web/portable).
 Restaurants tying up with online nourishment conveyance stages case to get a net
revenue of more than 12% to 15% than feast INS.
 Nowadays' Agg(s) are inclined to putting in sustenance requests online and
underwriting this pattern a considerable measure of eateries is yielding great profits by
enrolling themselves for internet requesting destinations like Food panda, Uber Eats
and Swiggy so on and numerous similar applications are likewise sticking to this same
pattern.

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 # Significant players
Online nourishment requesting is at an energizing stage now. Numerous players are there in
the market including both local and national players. With the hike of 7% from the initial year.
This sector is growing rapidly amazing with the current state of having contribution of 15%
every quarter. In this rapidly growing sector there are few players that are doing great in the
national market. And these few players are our competitors including Zomato, Uber Eats and
Food panda. Etc.

Organization Review

Sriharsha Majety, a BITS Pilani and IIM-C former student, was filling in as a broker at a
speculation bank in London before turning a 'merry drifter' who traversed South-east Asia and
Europe in his bike. Nandan Reddy, another BITS Pilani former student, was an expert and had
developed a begin (Galla) around a tablet-based POS for eateries subsequent to heading
operations of Source Pilani, India's first provincial BPO.

The two were building a logistics stage called Bundl which was closed in June 2014. Taking a
shot at Bundl and following the logistics space energized both the prime supporters of the
capability of hyper neighbourhood conveyance in Indian metros. Thusly, when they chose to
close down Bundl, they had effectively wanted to get into hyper neighbourhood conveyance.
This energy alongside the bother of requesting nourishment, was persuading enough for the
couple to dive in and begin Swiggy, alongside Rahul Jaimini, an IIT-Kharagpur graduate, who
was acting as an engineer at Myntra. Swiggy is the new nourishment requesting and
conveyance organization based out of Bengaluru. Swiggy began operations in August 2014
from Koramangala, Bengaluru's start-up centre point. Inside eight months of its dispatch,
Swiggy has secured $2 million subsidizing from Accel Accomplices and SAIF Accomplices.

“On 20th December 2018, Naspers; the largest technology investor

in the world, announced that it has executed definite agreements to
lead a USD one billion series H round in SWIGGY.

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SWOT ANALYSIS (SWIGGY)
Strength Weakness
 Brand Equity  Application related issues
 SLA (quick delivery)  Focuses on bulk hiring
 Trained fleet  Poor counter policies
 Sources of funding  No minimum order
 Quality management  Cost inefficiency

Opportunities Threat
 Emerging in new markets  Only national presence
with new businesses  Rivalry policies and
 Pioneer in Indian online food strategies
delivery  Increase in health
 Large customer base consciousness in the
customer

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 Industry Analysis
The e-Services market segment Online Food Delivery contains the user and revenue
development of two different delivery service solutions for prepared meals: (1) Restaurant-to-
Consumer Delivery and (2) Platform-to-Consumer Delivery. Revenue includes the gross
merchandise value (GMV) which is defined as the total sales dollar value for merchandise/food
sold through the Online Food Delivery marketplace.

Online Food Delivery comprises services which deliver prepared meals and food that was
ordered online for direct consumption. The Restaurant-to-Consumer Delivery segment
includes the delivery of meals carried out directly by the restaurants. The order may be made
via platforms (e.g. Delivery Hero, Just Eat) or directly through a restaurant website (e.g.
Domino's).

The Platform-to-Consumer Delivery market segment focuses on online delivery services that
provide customers with meals from partner restaurants that do not necessarily have to offer
food delivery themselves. In this case, the platform (e.g. SWIGGY, ZOMATO) handles the
delivery process.Not included are orders by telephone, unpacked food for immediate
consumption as well as non-processed or non-prepared food (e.g. HelloFresh).
All revenue figures refer to Gross Merchandise Value (GMV).

 Revenue (2019)
+16.5% yoy
US$8,167m
 User (2019)
+11.7% yoy
189.1m

Industry Revenue (as of 2019)

Revenue Revenue Growth

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 Competitor Analysis
There are many players in the online food delivery industry. In concern with Swiggy which an
aggregator is we have taken four of our core competitors as an aggregator which are.
 Zomato
 Uber Eats
 Food panda

ZOMATO
Zomato is a fastest growing restaurant discovery website, established in 2008 by Deepinder
Goyal and Pankaj Chadha. Initially, it was named as Foodiebay but in 2010, it was renamed as
Zomato. It provides not only information related to nearby restaurants but also provides
facilities such as online ordering, table reservations and management.
Between 2010-13, Zomato raised approximately US$16.7 million from Info Edge India, giving
them a 57.9% stake in Zomato. In November 2013, it raised an additional US$37 million from
Sequoia Capital and Info Edge India.
In November 2014, Zomato completed another round of funding of US$60 million at a post-
money valuation of ~US$660 million. This round of funding was being led jointly by Info Edge
India and Vy Capital, with participation from Sequoia Capital.
In April 2015, Info Edge India, Vy Capital and Sequoia Capital led another round of funding
for US$50 million. This was followed by another US$60 million funding led by Temasek, a
Singapore government-owned investment company, along with Vy Capital in September.
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.

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SWOT ANALYSIS (Zomato)
Strength Weakness
 First mover advantage  Application security issues
 Fast expansion  Poor Marketing strategies.
 Number of users  Poor Fleet training
 International presence  Dish database
 Brand Equity

Opportunities Threat
 Online Market
 Emerging Markets  Intense competition
 New Services  GP can affect business model
 New Technology  Flaws in application
 New Markets
 International Expansion

Uber Eats
Uber Eats (previously stylized as UberEATS) is an American online food ordering and
delivery platform launched by Uber in 2014 and based in San Francisco, California. Users can
order food from participating restaurants on their website or with a smartphone/tablet
application (only iOS and Android)
Users can read the menu, order, and pay for food from participating restaurants using their
device using an application on the iOS or Android platforms or through a web browser. Users
additionally have the option of giving a tip for delivery. The app detects the user's location and
displays restaurants open at the time separately from those that are closed. Payment is charged
to a credit/debit card on file with Uber. Meals are delivered by couriers using cars, bikes, or on
foot. Upon ordering, the customer is notified of the total price combining delivery fee and meal
price. Customers can track the delivery status after the order is placed. As of August 2018,
Uber Eats changed its flat $4.99 delivery fee rate to varying fee according to the distances. The
fee ranges from $2 to $8 as the minimum and maximum rate varying according to the distance
covered by delivery services. The platform occasionally features food from local celebrity
chefs wishing to increase their public visibility, including some who do not have physical
restaurants.

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SWOT ANALYSIS (Uber Eats)
Strength Weakness
 Brand association  Poor SLA
 Marketing strategies  Poor training for fleet
 International presence  Poor market audit
 Source of funding  Inefficient policies

Opportunities Threat
 Effective business model  Substitution options
 New Emerging Market  Discount and offers strategies
 Vast User base of rivalries
 Flaws in application

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 Foodpanda
Foodpanda (stylized as foodpanda) is a German mobile food delivery marketplace
headquartered in Berlin, Germany, operating in 10 countries and territories. The service allows
users to select from local restaurants and place orders via its mobile applications as well as its
websites. The company has partnered with approximately 30,000+ restaurants in 193 cities and
works with over 15,733 delivery riders. The firm was acquired by Delivery Hero in early
December 2016.
Foodpanda’s business in India was acquired by Indian cab-aggregator Ola on 29 December
2017 for an undisclosed amount.
The company raised a total of $318 million in venture capital. Foodpanda raised $20 million
in initial funding from Investment AB Kinnevik, Phenomena Ventures and Rocket Internet in
April 2013.In September 2013, iMENA Holdings invested $8 Million. In February 2014, there
was another funding round of $20 million from a group of investors, including phenomena
Ventures. On August 11, the company announced that it has collected another $60 million in
financing from a group of investors. In March 2015, the company announced it has raised over
$110 million from Rocket Internet, as well as other investors. Less than two months later, a
group of investors, including Goldman Sachs, invested over $100 Million in Foodpanda.

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SWOT ANALYSIS (Foodpanda)
Strength Weakness
 Brand association  Poor SLA
 Cost efficient model  Internal controversies
 International presence  Revoking restaurants
 Lower consumer base

Opportunities Threat
 Growing market for  Increasing potential
potential customers competitors
 New Emerging Markets  Negligence of potential
 Vast User base competitors

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 Analysis Grid

PARTICULAR SWIGGY ZOMATO UBER EATS FOOD PANDA

S
LATELY  Swiggy  Zomato  Uber is  Ola-
FUNDING raises $1 raised allocated backed
billion in $410 Mn to invest Foodpand
funding in 2018. $200 a pumps
from
 The million in fresh
Naspers
latest into its funds of
in
Decembe funding food Rs 400 Cr
r 2018. round delivery to enhance
will business, its
reportedl Uber delivery
y be at a Eats, here network
premium in
to the India, by
last May,
round 2018

CURRENT  Swiggy  Paytm  Uber Eats  Ola cuts

FEED makes Partners ties up investmen
first with with Tata t in
acqui- Zomato AIG to Foodpand
hire of to Add offer a, to
the year Food insurance narrow
with AI Ordering to focus on
start-up to Its delivery cloud
Kint.io App fleet kitchen
private
labels

UPCOMING  Swiggy  Zomato  Uber Eats  Cancellatio

PROJECTS DASH, in talks and Café n
beyond to sell Coffee restaurants
online UAE biz Day enter in order to
food to strategic make it a
delivery. cost-
which
German partnershi efficient
would co for p to business
deliver $200m launch a model
medicine multi-
s and brand
hyperloc chain of
al virtual
groceries restaurant
s in India

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PURPOSE Biggest focus: Zomato “the “Get the food "Food Panda -
“never let our ultimate you want, from Your One Shop
customers stay destination for the Tampa Stop for
restaurants you
hungry; Hunger all things food” Delicious Food"
love, at uber
saviour” speed.”

PRINCIPLE Online & Online and “make your Online & Mobile
PRODUCT Mobile mobile platform selection, and platform to
platform - Open for discovery of watch in real discover and
market place time as we
restaurants, table order from nearby
that enables deliver your
online ordering bookings, home combo directly to restaurants.
from nearby delivery and your doorstep”
restaurants & payments.
picks up and
delivers
MARKETING online ads, online online marketing, tv ads, online pop
CAMPAIGNS logos and marketing, ads through uber ups, stickering at
stickering stickering at app, tv ads, restaurants,
restaurants, restaurants, ads marketing
sponsorships, through Ola app
organizing
events, proms
distributions, tv
ads, pop ups

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 Suggestions

 In instance of WIs, showcasing exercises with promo codes and accentuation on combo
offers will be compelling.
 When it comes to understudies, they are more pulled in towards the free supper offer,
which empowers them to procure cash into their Swiggy account effectively. Promoting
exercises with accentuation on this offer will make enthusiasm for understudies towards
the application.
 Marketing exercises are the most vibrant vertical company could focus upon. So, every
company going same with its marketing strategical pace except Uber Eats (signed Alia
Bhatt as its brand ambassador)
 Amongst all the four competitors SWIGGY is the only one which is expanding its
verticals by going beyond only online food delivery. This could be a step positive step
in the direction of diversification but with this idea its must shouldn’t deviate from its
core business.
 With the huge customer base Swiggy is at the front in the online food delivery in India,
but in the contrast the other three competitors are having international presence. So, this
could be an upcoming challenge for Swiggy to cater the non-domestic areas also.
 In the concern with today’s generation trend is working the favour of health
consciousness every single aggregator is just focusing on delivery junk food and calorie
filled meal.in this scenario going with the healthy food options could provide an edge
to the SWIGGY in terms of competitive advantage.

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