Have you ever wondered how you can start a swiggy franchise in your city? If yes then here you will find all the answers that you need to know about the swiggy franchise before you take steps into this business.
Swiggy is a food ordering and delivery service business in India. It was started in July 2014 and it has shown significant growth in the last few years because it covered around 300 plus cities across India.
So if you are planning to get a swiggy franchise then you should know all the aspects of swiggy how the business works, how you can get a franchise, its cost and profit, and other things as well.
We have discussed so many different things that you should know before you start a swiggy franchise.
Is the swiggy franchise profitable?
The first question that should come to your mind when you are planning to start a swiggy franchise is about the profitability of the swiggy franchise.
The answer to the simple question is yes it is a profitable option to start because swiggy has become a popular online food delivery service business that provides so many great features that makes it easy for the customers to order food online.
Now, most people prefer to buy food online and swiggy provides the best facility for the same.
So the popularity and the trust that swiggy has gained all these years and because of the quality services they provide makes it one of the most profitable businesses to start in India.
Information about Swiggy
Swiggy is a private organization and an online food ordering platform that was founded in July 2014 by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini. The revenue of the swiggy company as per the report of 2020 was 360 million dollars. And now in 2022, it may have reached even more.
Currently, it operates in more than 300 plus cities in India, and the owner of the franchise is Naspers.
The headquarters of the swiggy company is in Bangalore, Karnataka and the current CEO of the company is Sriharsha Majety.
Why should you choose a swiggy franchise?
There are so many reasons for choosing the swiggy franchise. Initially, the swiggy showed slow growth but in the last few years, it has joined the billion-dollar club. It is the leading food chain business that is recruiting numerous employees for food delivery to capture a large market.
Swing [provides so many features that make it easy for customers to order and track food and also to own a swiggy franchise you don’t have to spend a large capital. Their franchise policy is very different from other businesses and is adaptable and friendly to acquire. So, these are some reasons for choosing this franchise.
Now we will discuss the steps that you need to follow to get a swiggy franchise and also please remember that you should own a restaurant because it is a food delivery service business, not a restaurant franchise.
How to get a Swiggy franchise in your city?
Documents You Need
Before you apply for the swiggy franchise they are certain documents that you need to have. Here is the list of documents that you should keep ready for smooth signup for swiggy:
- FSSAI Licence copy
- Aadhar card copy for KYC
- Your restaurant menu
- Bank Account Details
- GST details (optional)
- PAN card copy
- Canceled cheque
All these documents are listed on the official website of swiggy you can visit their “partner with us” section where all these documents are mentioned.
If you already have these documents for your restaurant you can easily go to their website and sign up and wait for them to make your restaurant live on the platform.
Process for Approval
It has a very simple process for approval. After the required documents have been received by the swiggy they will verify them within 7 to 10 working days and after finalizing your documents they will put your restaurant on the platform.
For this process, there is a fee charged by the system and admin cost but it will be weekly deducted after you receive orders on swiggy.
We will discuss later how the swiggy business model works, and how they earn money so you can get a better idea about the benefits received by both parties.
Cost of The Swiggy Franchise
There is no one-time fee that they will charge but there is a weekly payout that they will receive as a commission after you start receiving orders on the swiggy platform.
It varies according to the city so you need to contact them and ask them how much commission they will charge you as per your city. Usually, it ranges from 10 to 25%.
We all know that as your sales increase your profit increases so the swiggy helps you in increasing sales and giving you more customers. That is how you can earn profit in this business.
So you have to set the prices which include delivery charges, your profit, and also the commission that you have to give to the swiggy.
There is no 10 to 25% of profit potential because it is a delivery service company that can give opportunities to reach more customers so that they can earn more profit by selling food to more customers.
Regional Office: 3rd Floor Maruti Chambers Survey Number 17/9B Bangalore
Phone Number: +9108060006600
Timing: Monday to Saturday (9 Am to 6 Pm)
Office Address: Kurla Road, Mumbai, Maharashtra, 400072, India.
How Swiggy Makes Money From Its Customers
I know you are wondering how swiggy makes money from its business? Here is a list of ways by which they earn money:
Swiggy normally charges a 10% – 25% commission from customers. This commission is charged on the full bill plus goods and service tax.
Swiggy continuously attempts to get restaurants on board to be accessible on the Swiggy platform. In this record, certain advantages are given to them such as more noteworthy perceivability and a drop in the commission of about 2% – 3%.
The level of the commission relies upon different variables such as the requests, location, and so forth.
Swiggy began acquiring publicizing income using two models – Banner advancements and posting.
Swiggy as of late began with banner advancements to remove a leaf from Zomato and Foodpanda’s books. Restaurants are advanced and shown in their application and site relating to locales.
Various districts on the show page shift in their rates depending on the perceivability. The main hindrance is that Swiggy doesn’t share client information, so the restaurant depends on producing crude income through higher perceivability as it were.
Swiggy doesn’t have a base request prerequisite for delivery which implies that Swiggy frequently gets orders adding up to not as much as Rs 100. This builds the coordination cost per request.
Along these lines, after Swiggy got a solid hold of the market, it began charging conveyance charges to low request sums (depending and differing from city to city).
Conveyance charges are ordinarily around Rs 20 for orders not as much as Rs 250. Swiggy some of the time likewise charges a conveyance cost amid appeal, downpours, exceptional events, and noon conveyance in select markets.
This furthermore helps in pushing clients requesting over the edge to abstain from paying conveyance charges.
Swiggy has as of late propelled Swiggy Access, a focal kitchen base-like office that houses kitchens of various restaurants including Swiggy’s private brands. This cloud kitchen model will assist in setting up kitchens in areas even where they are absent.
Propelled in Bangalore a year ago, it has extended to 30 restaurants with 36 kitchens for new urban communities including Kolkata, Delhi, Mumbai, and Hyderabad.
This between-city model is required to be a distinct advantage for infiltration into level 2 and level 3 urban communities.
Right now, in business sectors where it is propelled, about 8% – 25% of request volumes come using Access kitchens.
Swiggy has as of late propelled Swiggy Super which is a participation program for clients. It offers boundless free conveyance on orders above Rs 99.
Accessible alternatives incorporate a one-month enrollment for Rs 149 and 3-month participation for Rs 349 which are being offered at a starting cost of Rs 49 and Rs 129 individually.
This sum notwithstanding the recurrent requests Swiggy expects through this enrollment program is relied upon to expand income.
Other than the center business rehearses, Swiggy likewise brings in cash as partner pay by alluding charge cards to its clients. The organization has collaborated with monetary foundations and banks like American Express, Citibank, ICICI Bank, HSBC, and so forth to sell their Mastercards to clients. Clients see the charge cards offered on the request following screen.
Future of the Swiggy Organisation
Swiggy as of late turned into the principal aggregator to offer the 30 minutes or free conveyance highlight to clients. It is accessible at select restaurants in select urban areas.
When it is completely propelled – Swiggy will bear 70% – 80% of the expense if it neglects to convey on schedule while the rest will be borne by the restaurant.
Swiggy additionally propelled the Swiggy POP which centers around giving single-serve suppers that spare time. It is focused on time-squeezed experts who are progressing and need an idiot-proof blend for their everyday needs.
Swiggy now likewise permits clients to pre-request their dinners through Swiggy booked. They would now be able to put in their requests in spaces of 30 minutes, at least two hours, and a limit of 48 hours ahead of time. This improves the experience of the individuals who request from Swiggy routinely.
Swiggy Business Model and How it Functions
The Swiggy business model defines the process of how it works. Because it has become a successful business and people want to know how they work and function.
This business model of swiggy is well developed by most known professionals to make it successful.
Much the same as Grubhub in the USA, Swiggy works on a hyperlocal on-request nourishment conveyance business model. It totals restaurants as well as sorts out an armada of conveyance accomplices which convey the nourishment (in under 30 minutes) on request.
The accomplices can be isolated into two classifications:
- Delivery Partners
How does Swiggy Works?
Swiggy gives an online stage to requests from a wide scope of recorded neighborhood accomplice restaurants and has their armada of conveyance workforce who get the requests from the accomplice restaurant or cafe and convey them to the clients at their doorsteps.
Swiggy works by giving total nourishment requesting and conveyance arrangement that associates the current neighborhood restaurant with the urban foodies ending up being gainful for both.
You can open the Swiggy application on your cell phone or visit the Swiggy site and you will locate an entire rundown of restaurants to arrange from.
When the restaurant is chosen and the request put, the restaurant which has its Swiggy application gets the request subtleties and starts planning for the request.
A communication signal is then sent to all the drivers in the region who have their driver applications. Those ready to acknowledge the request can decide to acknowledge and convey it.
Like other on-request conveyance new companies, Swiggy additionally has coordinated the Google Maps API which tells the clients where their request is and the measure of time it will take for their request to get conveyed progressively.
Swiggy Business Model Canvas
In portable mode do a long push on the picture and afterward, you will get the alternative to spare it.
The following things are referenced in the canvas in very subtleties:
- Income stream (income model of swiggy)
- Cost structure
- Key exercises
- Distinct advantages
- Key accomplices
- Client fragment
- Client relationship
Swiggy is an online nourishment conveyance stage that lets the restaurant list/notice their business on it and furnishes the menu with estimating.
It causes the eatery to build its benefit without accomplishing any difficult work.
Consequently, Swiggy charges commission as I referenced previously. A client when visiting the application or site gets a choice to choose the café depending on the area nearby. At that point request the nourishment thing from their menu.
The client can likewise pick the nourishment first at that point and select the restaurant where that nourishment is accessible. You can likewise pick those restaurants or cafes that are far away from your area however the conveyance time will increase.
After the request, the young men of Swiggy get the message and area. Just Those conveyance young men get messages who are close by to the restaurant.
This conveyance framework is claimed and run by Swiggy. And afterward, the conveyance is done within 30 min. Swiggy maintains the cash of control and everything and following seven days they give the cash to the particular restaurant or cafe.
Now we have talked about many aspects of the swiggy franchise business such as how it works, how to start one, and other aspects as well. The figures mentioned in the article may vary from time to time because they constantly adopt new prices as the market changes. I hope this information was useful for you.