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How Swiggy Makes Money?

When you want to eat your favorite food, you have to follow that usual tedious task. Go to the restaurant, order the food and wait until it arrives but now no more issues, you can Swiggy it.



BEGINNING AND THE PRESENT STAND

A start-up founded by Rahul Jaimini, Sriharsha Majety and Nandan Reddy which is a online ordering and delivery platform that allows us to order food form our nearby favorite restaurants. Currently Swiggy is present in states like Dehradun, Puducherry, Mysore, Vijayawada, Nashik, Ranchi,. Guwahati, Kanpur, Ludhiana, Ahmedabad, Bangalore, Chandigarh, Chennai, Delhi, Gurgaon, Hyderabad, Jaipur, Kolkata, Pune and Mumbai. 



BUSINESS MODEL

It is a location based search engine where you can order food for the restaurants nearby you location. Once the order is placed, Swiggy delivery personnel is assigned to the order who picks up the food from the restaurant and then delivers it to the doorsteps of the customer. It connects the neighbourhood restaurants with the foodies proving to be beneficial for both. This startup makes money by charging commision from restaurants, some revenue sources and from charging on delivery.  Commission from Restaurants:-

Swiggy charges 15% – 25% commission on the order bill amount received by the restaurant. This rate of commission depends on different factors such as the value of order, the popularity of the restaurant or on the full bill amount which is inclusive of the Goods and Service Tax charged over and above the menu price.

ALTERNATIVE SOURCES OF INCOME

They also earn from other sources such as:-  1. Featured list- They feature the restaurants on their curated list which helps the restaurants to get more bussiness.  2. Swiggy Access- It is a paid service which helps the restaurants to open delivery only kitchens i.e servicing only through Swiggy platform across the country. This helps the restaurants to expand their geographical presence. 3, Delivery charges- So when Swiggy got hold of the market, it started charging delivery charges to low order amounts depending and varying upon city to city. Chargers were around Rs 20 for order less than Rs 250. Sometimes Swiggy charges high during rains, special occasions or midnight delivery. This is how India's most lovable food delivery start-up works.

-Lipakshi Rathor

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