- Builds partnership with retail shops and eating places.
- Hiring delivery partners on full time or part time basis.
- Acquires customers attentions and caters to their needs.
- Managing customers and partners relations by properly managing profits and income.
- Payroll expenses for workers with incentives and benefits.
- Cost of managing application and websites.
- Maintenance cost.
- Advertisement and marketing cost
- Order Returns, Cancellation & refund expenses
- DELIVERY CHARGE : A nominal charge is always charged to customer for delivery. Anyone who orders food of Rs. 500 is capable to pay a nominal fee or Rs. 20-40. Only in some condition these charges are raised like harsh weather conditions.
- ADVERTISMENT & METHODS :
- By raising up banners of different food joints on their app and website and promoting them, swiggy earns a lot through their advertisement
- Swiggy has a list of restaurants, and if they want to get above in the list, they need to pay some price for it. It helps both swiggy to earn money and the food joint to come first in the eyes of a customer.
- With the new idea of swiggy access, they provide food joints read to use kitchen spaces to its partners who don’t operate in that particular area. Earning around 25% of income swiggy is enhancing their read to use kitchen more and more.
- By launching “swiggy super” people are now subscribing it. Its main function is to provide free delivery of food if they are above Rs. 99. Through this they earn by getting subscriptions.
- Swiggy also earns through partnering with financial institutions like HSBC and ICICI banks where both the bank and swiggy earns a lot of profit.
- Build relation with food joints and encourages them to Partner with zomato.
- Has mixed customer experience, focuses on customers who generally give reviews and help them grow.
- To strengthen their delivery network & customer acquisition they keep on raising funds as their priority.
- Payroll expenses for workers with incentives and benefits.
- Cost of managing application and websites.
- Maintenance cost.
- Advertisement and marketing cost
- Order Returns, Cancellation & refund expenses
- ADVERTISMENT & METHODS :
- Zomato has earned approx $38 million only by add sales. It just like swiggy, allows restaurants to advertise about them. These advertisements can cost from Rs. 5000.
- Food deliveries count 18% of its revenue in 2017 and by 2018, zomato earned 30% its revenues by dileveries.
- Just to provide some exclusive food experience, zomato launched “zomato gold” and has almost 106k subscribers for it.
- Poor logistics problem like swiggy has its own people for delivering food items across different places. If anything wrong happens then it will be responsibility of swiggy and not the restaurant from where food was ordered.
- There is a very less profit one makes by offering service in swiggy. Although the company earns a huge amount but for a restaurant sometimes it is not enough.
- Packing the food is sometimes a big task for restaurants as they have to put money on buying things on their own and one of course cannot charge people for cutlery.
- Delivery on time or money back is a serious issue. Delivery boys sometimes suffer due to offers like these made by companies.
- Not having a delivery system like Swiggy is a major setback for Zomato. Having no delivery system of their own makes things difficult and problematic for zomato.
- The boom that zomato gold got in no time is making restaurant owners lose their interests back. Making this a huge problem and loss for zomato.
As there is a super fast growth of ecommerce businesses like amazon and flipkart, the food and craving business also entered the ecommerce world indirectly. Yes! We are talking about zomato and swiggy. The two business startups that changed the face of dining world.
About SWIGGY
| Company | SWIGGY |
| FOUNDED IN | 2014 |
| FOUNDED BY | Sriharsha Majety, Nandan Reddy, Rahul Jaimini |
| HEADQUATERS | Bangalore, India |
After the failure of “Bundl” due to poor logistics, these entrepreneurs came up with new business idea with a proper mind map and execution. Within few months of launching swiggy, it became very popular. It is based on the principle of hyper local on-demand food delivery business. Without involving any 3rd party company to deliver food, they gained their success!
CUSTOMER SEGMENT
Swiggy mainly focuses on for people who love ordering food and are too lazy to go out. After the expansion of swiggy, people can get other products like groceries, electronics, flowers, etc.
NO MINIMUM ORDER REQUIRED
Swiggy does not impose restrictions on minimum order and has every possible payment method from COD to net banking or Paytm.
CUSTOMER RELATION
Swiggy provides 24/7 service and has support chat if you face any problem.
KEY FUNCTIONS
COST STRUCTURE
REVENUE MODEL
All of us at some part have thought how these sites earn when all they provide is service to other food joints! Have a look beneath to understand their mind and intellect to earn money.
About ZOMATO
| Company | ZOMATO |
| FOUNDED IN | 2008 |
| FOUNDED BY | Deepinder Goyal, Pankaj Chaddah |
| HEADQUATERS | Gurugram, India |
Zomato had a pretty smooth set up unlike swiggy. At the start, it was named as “foodiebay” but changed to “zomato” as they owners thought that it sounded more like ebay. Starting their service from Delhi-NCR, now zomato is all over the world. Growing at a fast rate, zomato has acquired Poland’s and Italy’s food services. Zomato has also acquired over Uber-eats and till date zomato has earned billions and is in no way going to stop by anyone.
CUSTOMER SEGMENT
Zomato mainly focuses people of age 18-35 who are a foodie and want to try new food joints or order things at home. It aims to create a place where people share food habits and share their tastes with suppliers.
Although unlike swiggy, who prefer to build customer relations, zomato is a bit professional and looks for their profit before the consumers. Although people prefer zomato more than swiggy and hence makes zomato a bit ahead of swiggy.
CUSTOMER RELATION
Zomato generally has a mixed service. Unlike swiggy, zomato is not able to maintain their delivery service and hence some people experience bad services.
KEY FUNCTIONS
COST STRUCTURE
It’s almost like swiggy, as both brands work almost with a similar motive; their business strategy is also a bit same
REVENUE MODEL
Now from here you can analyze the difference and similarities in the functioning of both swiggy and zomato!
| ZOMATO | SWIGGY |
|---|---|
| It has both reviews and rating | It only has ratings |
| Complex order and service methods | Simple order and earning methods |
| Zomato Gold charges for delivery | Swiggy super does not charges for delivery |
Although there actually can’t be a comparison between swiggy and zomato. Both have different motives and work accordingly. But zomato has a vast function like seat reservations, locality check and places near me; whereas swiggy has main function for delivery of food items and easy access to things.
PROBLEMS WITH STARTUPS LIKE SWIGGY AND ZOMATO
SWIGGY
ZOMATO
By different times we are going through right now, zomato to cope up with the loss occurring these days lave launched contactless delivery. This is an amazing idea with which swiggy couldn’t come up with. Zomato is pretty ahead of swiggy on finding creative new ideas which sometimes results in zomato ahead of swiggy.
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