Swiggy's recipe for success: Innovation, customer focus, and social responsibility
Rohit Kapoor, Chief Executive Officer of Food Marketplace, Swiggy tells how the 10-year-old foodtech company is revolutionising the way India consumes.
Ten years ago, ordering in was a luxury, reserved for special occasions. But everything changed when Swiggy entered the picture.
Its USP was simple: You desire it, we’ll deliver it. That commitment has evolved from delivering the spiciest biryani to the latest headphones.
What started with six delivery partners, delivering food from 25 restaurants, has now grown to millions of orders a day and hundreds of thousands of restaurants, stores and retail outlets—all covered in that one nifty app.
Swiggy has revolutionised consumption.
"If you take companies born in the last decade, Swiggy will be one of the top two or three most valued names," says Rohit Kapoor, Chief Executive Officer of Food Marketplace, Swiggy, in an exclusive interaction with YourStory.
But the best is yet to come. With an imminent public market debut, and changing consumer preferences driving the business to new heights, the company is optimistic about the future.
Whether being the first to adopt a full-stack delivery model or introducing quick commerce before it became a buzzword, Swiggy has always been ahead of the curve. "The core of our success is the ability to be humble, and the ability to identify the seeds of an idea, and be willing to experiment with it," Rohit adds.
Quick commerce
India is seeing a massive rise in quick commerce, the delivery of goods within minutes. The growth of the segment has taken off since the pandemic, and the market is projected to reach $5.5 billion by 2025, as per an industry report.
This growth is being fuelled by changing consumer behaviour and technological advancements. But Swiggy gets to the core of consumer behaviour to understand what is driving this trend.
The consumer, explains Rohit, breaks a purchase into two parts: discovery and transaction. The time taken for discovery, or zeroing in on the products they want to purchase, is invariably the one that takes a long time. But once they’ve made the choice, they expect immediate delivery. “There is no value-add to wait,” he adds.
He further explains that the success of quick commerce is not a passing trend but is backed by data.
“It’s not just a buzzword. When we see the consumer cohort, we see families ordering 30 times a week,” Rohit says. And this is not just limited to the urban or metro cities. The demand for instant gratification is rising among a vast number of Indians, and companies are rushing to fulfil this demand.
There is also headroom for growth in Tier II, III, and IV cities to address their unmet demand for quick commerce. The reason is that access to product information for consumers across India is practically the same because of high digital penetration, but supply and purchasing power differ.
Shifting attitudes power the future of food delivery
However, it is not just quick commerce that is growing. Rohit is a firm believer that India’s food delivery business is also poised for significant expansion. On average, an Indian household goes out to eat or orders food 7-8 times a month. In Singapore, that number is 50. In the US, it is 20-30. He gives the example of Beijing, where the restaurant density is way higher than in India. Lastly, the purchasing power in India is on an upward trajectory.
All these are indicators that "there is ample room for growth...as more people adopt online ordering," he says.
Fuelling the shift towards food delivery is convenience and a subtle but sure shift in generational attitudes where cooking was seen as the primary responsibility of the woman in the household. “Cooking is a choice, not an obligation,” says Rohit.
Women are increasingly placing emphasis on using their time effectively to be the best version of themselves, and Swiggy hopes to be a partner in powering that convenience.
Swiggy's commitment to its delivery partners
For any delivery business to be effective, the most important work is done by its delivery partners. The gig economy underlying this workforce has been the subject of much discussion, especially concerning work conditions and compensation.
Rohit acknowledges the challenges faced by gig workers but insists that this work is a stepping stone for better things for these workers.
"The term ‘gig work’ does a disservice to the profession," he says, "I've met students in smaller towns who supplement their studies by working a few hours a day.”
In his conversations with the delivery partners, Rohit has found they value the flexibility and control that gig work offers. “Many of them tell me they were unable to attend important family events while working traditional jobs. Now, they appreciate the freedom to prioritise their personal lives," he adds.
He also emphasises the importance of fair compensation for delivery partners and urges customers to tip generously, recognising that it can make a significant difference in the earnings of these workers.
The IPO and beyond
While Swiggy's core DNA is building capability, the company has also acquired businesses such as Dineout, adopting a flexible approach to growth and a willingness to consider both organic and inorganic strategies.
As the company gears up for its upcoming IPO, Rohit acknowledges it as a significant milestone but not the end of the journey. “It feels exactly like turning 18. It is not a culmination, but a pit stop in our journey,” he signs off.