The IUP Journal of Entrepreneurship Development
Case Study
Swiggy's Delivery Model

Article Details
Pub. Date : Mar, 2021
Product Name : The IUP Journal of Entrepreneurship Development
Product Type : Article
Product Code : IJED30321
Author Name : Shubhanjali Chakravarty and Sanjib Dutta
Availability : YES
Subject/Domain : Management Journals
Download Format : PDF Format
No. of Pages : 13

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Abstract

The case study "Swiggy's Delivery Model" discusses how online food delivery company Swiggy used technology to power its delivery model. Swiggy was the brainchild of two engineers who were staying away from home and were struggling to get good food delivered at their doorstep. The duo worked on the idea of hasslefree food delivery, giving rise to Swiggy in 2014. Swiggy initially started taking online orders from customers in the Koramangala locality in Bengaluru which housed some of the best restaurants in the city. It gradually expanded across Bengaluru and other Indian cities like Delhi, Pune, Gurgaon, Hyderabad, and more. It launched its mobile application in May 2015. The case describes how Swiggy created a system that connected all the three partners in the delivery model - Delivery Executives (DEs), customers, and restaurant partners - seamlessly. The case also discusses the challenges Swiggy encountered when it began scaling up in 2016 and the initiatives such as Just in Time (JIT) assignment, Next Order Assignment (NOA), and batching that it took to overcome the challenges. The case concludes with Swiggy's plans for the future such as diversifying into medicines and grocery and the use of Artificial Intelligence (AI) technology for further scaling up and expansion.

Swiggy's goal is to revolutionize the food delivery market in India by providing a cheap, fast and efficient alternative to taxing the already short-staffed restaurateurs. There are several existing and even more upcoming food-ordering platforms in the country. However, Swiggy sets itself apart from the competitors by having their own delivery fleet, thereby minimizing the risks in delivering an order.1

- Sriharsha Majety (Majety), Co-Founder and CEO of Swiggy, in 2019


Introduction

On December 20, 2018, India-based online food delivery company Swiggy raised $1bn in the largest-ever funding round by an Indian food tech startup. Post that round, Swiggy's valuation went up to $3.3 bn.2


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