Digital Platforms and Data

Monetization – Final Project

 Roadmap

The New Platform to

Introduction rectify gaps How Platform Corrects

Current Business Potential

Model Problems
 What is a Platform?
Functions of platform business model

• A business model that creates value by facilitating exchanges between two or

more interdependent groups.

• It create communities and markets with network effect that allow users to
interact and transact.

• For example Facebook, Uber, or Alibaba, directly do not create and control
inventory via a supply chain the way linear businesses do. Platform businesses
don’t own the means of production— instead, they create the means of
What a platform does?
connection.

• Successful platforms facilitate exchanges by reducing transaction costs and/or by

enabling externalized innovation.

• Platform business is not just a technology but a holistic business model that
creates value by bringing together consumers and producers

 Founded: 2014
 Founders: Sriharsha Majtey
Nandan Reddy
Rahul Jaimini
 Headquarters: Bengaluru
 Employees: 4000
 Delivery Execs: 60000
Swiggy Boy Benefits
 Group Personal Accident
Insurance
 Group Medical Insurance
 Pre-loaded Food Card
 Paternity and adoption leave
policy
 Free assistance on tax and
investment planning
About Swiggy
Swiggy is a food ordering and
delivery company. It provides a
single window for ordering from a
wide range of restaurants, they
also have their own exclusive fleet
of delivery personnel for picking up
orders from restaurants and
delivering it to customers.
Key Selling Points
 No Minimum Order
 Live Order Tracking
 Lightning Fast Deliver
Competitors
 FoodPanda  Grofers
 Zomato  FreshMenu
 Licious
 Total Funding: $465.5 million
 Revenue: $1.5 billion
 Gross Profit: $1.5 billion
 Market Valuation: $1.3 billion
 Daily Orders Processed: 103,497
 Restaurants Onboarded: 35000
 Active Cities: 28
•Complete Ownership: Dominos &
Faasos -  take ownership of the entire
supply chain and production
•Asset light : Zomato & Food Panda
rely on large traffic volumes for order
generation but outsource delivery
•Hybrids : Swiggy - focuses on
providing a seamless user experience
by controlling the customer
 The Current Model

• Swiggy is delivery based business where one can order food online from the list of restaurants near his/her
location.

• Comission from restaurants

1. The quantum of commission depends upon a lot of factors which include the value of the order as well as the
location and popularity of the restaurant.
2. Featured Lists: It charges restaurants fees for featuring them in curated list of restaurants on the Swiggy
app/website.
3. Swiggy Access: It is a paid service which helps restaurants to open delivery only kitchens across various parts of
the country.

• Delivery Charges

Swiggy also charges delivery fees from customers in some locations. These charges go towards meeting the cost of
delivery personnel including their salaries, cost of fuel etc.
 Potential Gaps

• All the customers don’t wish to order restaurant food, instead some prefer home cooked food delivered to their doorstep.
• Some customers see it as a healthy alternative while others want to break the monotony of ordering restaurant food again
and again.
• India has tiffin services in localities but they operate at a very miniscule level and don’t have the logistical ability to cater to
a vast audience. Only customers residing nearby can be their target customers/audience.

Problem Statement: Make home cooked food available to customers within the same
platform by introducing a new entity of chefs who cook food in their homes but use the
logistical capabilities of Swiggy to cater to the potential customers.

• A large chunk of customers is left out who are looking for home cooked food and don’t get the options.
• This can act as a Point of Differentiation (POD) for Swiggy and give them an edge over Zomato, FoodPanda, UberEats,
etc.
• The tiffin services will get a boost as they have to pay a premium but can expand their business to cater to new audience
now.
• They can operate from their homes and use Swiggy’s huge fleet of delivery boys to deliver their food.
 The New Platform
Chefs
(New)

Consumers

Restaurants
(Existing)
Swiggy
Platform

Business Model Chef Rating Food Ordering

• Chefs - People who want to provide daily meals
– fixed or customized to consumers
• Consumers – There are people who want home
cooked fresh food – both fixed or customized
• Our platform will connect these. We as Swiggy Prioritizing of listing Select Add Select Payment
will have a fixed margin per order. Chefs will based on rating by Location Meal to Time Gateway
determine the cost of product. customers Cart
 The Proposed Model

Business Model
• Restaurants – places which provide meals to the customers – existing entity for the platform
• Chefs - People who want to provide daily meals – fixed or customized to consumers
• Consumers – There are people who want home cooked fresh food – both fixed or customized
• Our platform will connect these. We as Swiggy will have a fixed margin per order. Chefs will determine the cost of
product.
Revenue Model
• Restaurants – existing revenue stream for Swiggy – commission based order system
• The restaurants decide how much to charge from the customers with their fixed menus
• Chefs – additional revenue stream for Swiggy – additional costs for communication to the potential tiffin services
for registering on the platform – after that the tiffin services pay the fixed margin and also premiums to appear on
top of curated lists in the app.
• Consumers – There are people who want home cooked fresh food – both fixed or customized
• Our platform will connect these. We as Swiggy will have a fixed margin per order. Chefs will determine the cost of
product.
 Application Framework
Experience
Social
In app special Customer friendly layer Unified ID Loyalty points
promotions UI listening and
credentials blockchain
analytics
Curated lists with
Rich list of restaurants/chefs Swiggylytics –
restaurants/chefs suitable for Social media Beacon
based on
customer integration service
Enabling previous data
Technology
Analytics layer
integration for Live order tracking Location-
Cloud based Event
preferences aware
infrastructure producers
software

Contact info Tech

available
Infrastructure Real time Network
Layer queue constraint
 Comparison between Old and New Model
Potential Problems with Suggested Changes

DISCRIMINATION HIGHLY COMPETITIVE NO PARAMETERS OFFERING FALSE ISSUES WITH

BASED ON CASTE, PRICING SET BY THE SET FOR BEING INCENTIVES TO LONGER DELIVERY
RELIGION IF NAMES COMPANY – LEAVES ELIGIBLE TO SELL GET MORE TIMES &
ARE KNOWN VERY LESS MARGINS FOOD CAN LEAD REGISTRATIONS CONTACTING
FOR CHEFS TO BAD QUALITY ON THE APP DELIVERY PERSON
AND TASTE
 Corrections by the Platform
× Difficult to act on incentives promised at the time of sign up
× Pricing is generally competitive (set up by the company), which
cuts down the profits and earnings of the individuals

 By shifting the onus of pricing on the individual, we escape

problems which they occur due to incorrect pricing
 We become merely the intermediary (e-bay)
 Reduced cost

• Build a reputation system – Ratings × Free marketplace that allows

• Removal of all names and instead a
numbered approach
• Each profile is allowed a 100 word
bio
 Top 20 MasterChef Contestant
 Specialise in North Indian, Mughlai
 A simple demand-supply
 Prepare Vegan food
 Personal Recommendations from the
menu ______
the food maker to charger
whatever price they want
 However, the platform
marketplace automatically
punishes such policies since
there is intense competition
that acts as a deterrent
mechanism is at work in this
particular place
THANK YOU!