At a time most food delivery startups are failing and running out of investor’s money, Swiggy has achieved what most could not in first few years of operations.
Ola, which was primarily running on cab-aggregation also closed its cafe business this year since there were not many takers for the service. Tinyowl, a food delivery startup, shut down most of its operations last year as well, while Peppertap shut its grocery delivery operations and Grofers shut its operations in 9 cities across India.
Emerging from the rubble of failed startups, Swiggy has achieved 1 Million orders in April 2016, a staggering average of 33,400 orders every day in the month. A growth of 25% over March 2016 has been observed, an amazing feat for Swiggy at a time when the food-delivery industry seems to be slowing down.
How did Swiggy achieve this figure?
There is no secret recipe to success. Smart work along with trusted investments can help you achieve a good spot in the industry. However, one thing which set Swiggy apart from other startups was that they did not unnecessarily provide huge discounts to grow volumes.
Instead Swiggy focussed on growing its portfolio organically, by inculcating feedbacks from customers and improving customer service to not lose potential clients. There are about 4,200 delivery boys with Swiggy right now which have been a major push in growing its sales since January 2016.
Swiggy’s Co-Founder Nandan Reddy pointed out that Swiggy is only one of the few which charges a delivery fee, and yet has grown in huge proportions in the last few months. The Bengaluru-based startup in profitable in Bengaluru, Mumbai and Delhi-NCR, which is three out of the eight cities it operates in.
Most food-delivery startups, including Foodpanda, rely on excessive discounts which in long-term hurt the sales and revenue of the company itself.
As you might have guessed, the next steps for Swiggy are to become profitable in rest 5 cities before expanding to more areas. This strategy is very well thought of and should inspire budding entrepreneurs and other startups in the same space to chalk their path forward.
