How Swiggy, Zomato, and Foodpanda are Working? – A Case Study
Food delivery market in India is valued at around $15 billion. An exponential growth is expected in the coming future. There is a trend now in people to get their favorite food from their favorite restaurant delivered at home. There are several players in the market who caught this trending stream and started online food ordering and delivery business. Swiggy, Zomato, and Foodpanda are the names of those players. This post discusses, in brief, the working of these companies.
Founding: It was founded in 2008 by Deepinder Goyal and Pankaj Chaddah. It is headquartered in Gurgaon, Haryana and currently operating in 24 countries. Both founders worked together at Bain and Company and saw people waiting in the queues for looking up the menus for the food order. It was the time when they both decided to put these menus online for the access of customers. Initially, they started this venture with the name Foodiebay. They left the Bain and Company when their business reached 4 different cities. They Later changed the name of their business to Zomato.
Business Model: Zomato provides a platform for restaurant search and in-depth information of over 1.4 million restaurants spread across 24 countries. It also provides their menu and public reviews. It has been estimated that over 90 million users visit Zomato every month to search for a good restaurant of their choice. They earn in mainly in three ways:-
- Advertisements from restaurant owners.
- Online food ordering and delivery service.
- Consulting service with restaurant data.
Funding: Fund-Raising from investment partners like Info Edge and Vy Capitals, Sequoia India etc.
(Also Read: E-Commerce Market in India and It’s Shining Growth)
Founding: This company was founded in Bangalore in August 2014 by Nandan Reddy, Sriharsha Majety, and Rahul Jaimini. Nandan (29 Years old) and Sriharsha (31 Years old) are the alumnus of BITS Pilani while Rahul (31 years old) is an alumnus of IIT Kharagpur. Nandan and Sriharsh started their first business named Bundl which was providing courier services to small and medium companies. Later they started Swiggy along with Rahul.
When Swiggy was started in 2013, it had 6 delivery executives and 25 listed restaurants on its dashboard. In the next 3 years, these numbers scaled up with 6,000 delivery executives and thousands of restaurants across India. It receives around 1 lakh orders per day.
Business Model: They generate revenue in mainly three ways:-
- It sets commission from listed restaurants for lead generation and delivery service.
- It charges a delivery fee from customers in some cases, generally when the order price is low.
- Paid promotions by the restaurants and other advertisements.
Funding: It receives funding from many investment partners through fund-raising schemes.
(Also Read: Startups in India – Facts Behind the Figures)
Founding: Foodpanda was founded in the year 2012 in Berlin, Germany by 4 partners – Ralf Wenzel, Benjamin Bauer, Felix Plog, and Rohit Chadda. It currently operates in 10 countries and territories. Its business in India was acquired by cab-aggregator Ola in December 2017.
Business Model: Foddpanda also provides the online food ordering and delivery service. It allows its users to select from the local restaurants and order online via mobile application and website as well. It also generates revenue in similar ways:-
- Takes commission from the restaurant on food order.
- Charges from restaurants for advertisement and promotion.
Funding: From Investment partners through fund-raising.
Case Study Conclusion: Online Food Ordering and Delivery Business
All of the above 3 Online Food Ordering and Delivery companies provide the following services:-
- Online food ordering and delivery.
- Provide foods from local restaurants.
- Help customers in finding the favorite food item from the favorite restaurant.
- Provide delivery at a shorter time.
- Give customers the promotional offers
All of the 3 Online Food Ordering and Delivery companies earn in the following ways:-
- Fix a lower price (from what they display on the platform) of the food items from the listed restaurants.
- Take commission from the listed restaurants for order generation and delivery services.
- Take charges from restaurants in terms of advertisement, promotion and search appearances.
#Swiggy #Zomato #Foodpanda #Online Food Delivery