INTRODUCTION

The online food delivery market in India was valued at INR 45.58 Bn in 2017 and is
expected to expand at a compound annual growth rate (CAGR) of ~38.08% from 2018 to
2023.
This growth has triggered a massive influx of investments into online food delivery services
such as Swiggy which has raised $1.31 billion in three rounds during 2018.
Zomato, which leveraged its large base of restaurants in the country, launched its food
ordering service ZomatoOrder in April 2015.
The recent innovations in the global market are:
Mobile ordering
iPad order kiosks
Facebook ordering
Tabletop e-waiter & checkout
Digital menu boards + smartphones
Demand Drivers
• 1. Encouraging Demographics
• 2. Promising Income & Consumption Levels
• 3. Favourable Lifestyle Changes
• 4. Rising Number of Working Women
Supply Drivers

• 1. Expanding Variety of Cuisines

•
• 2. Upgrading of Retail Formats
• 3. Rising of Contract Cultivation
• 4. Emerging of Logistics Providers
• 5. Growing of Delivery - dedicated Formats
Challenges of Online Food Delivery Business

• Chef’s Onboard
• Retaining Customers
• Food Standardization
• Pricing
• Earning Higher Profits
• Managing Logistics
• Freshness of Food
• Type: Private
• HQ: Bangalore, IN
• Founded: 2014
• Website: www.swiggy.com
• Tagline: When you are hungry think of us
• Mission statement: Change the way india eats
• Swiggy was founded in August, 2014 byNandan Reddy,
SriharshaMajety& Rahul Jaimini.
• Ordering food online & providing delivery solutions at your doorstep
from the best restaurants in your neighborhood.
• Accepts online payments for all orders with no minimum order policy.
• Has own fleet of delivery personnel
SWIGGY’S BUSINESS MODEL
 SWIGGY SWOT ANALYSIS
Strengths
• Quick Delivery
• Good brand image
• Trained delivery personnel’s
• Responsive customer support
• Wide range of restaurants offered
Weakness
• Location based restaurant finder
• Marketing, Brand awareness
• Delivery charges for orders below Rs.250
• Menu and App price difference
• Opportunities
• Pioneer in food delivery business
• Growing market
• Increasing market share
• Minimal competition
• Lack of market leader
• Threats
• Unstable and low customer base
• Increasing health consciousness
• Increasing potential competitors
• Laws and government regulations
• Zomato is an Indian restaurant search and discovery service founded
in 2008 by Deepinder Goyal and Pankaj Chaddah. It currently
operates in 24 countries.
• Acquisitions
• Zomato has acquired 12 startups globally.
• Investments
• In October 2018, Zomato raised $210 million from Alibaba's payment
affiliate Ant Financial. Ant Financial received an ownership stake of
over 10% of the company as part of the round, which valued Zomato
at around $2 billion. Zomato had also raised an additional $150
million also from Ant Financial earlier in 2018.
• History
• The restaurant search and discovery platform began its operations
under the name, Foodiebay. In November 2010, the brand was
renamed as Zomato.
• By 2011, Zomato launched in Bengaluru, Pune, Chennai, Hyderabad
and Ahmedabad.
LITERATURE REVIEW
• Growth of Food Tech: A Comparative Study of Aggregator Food Delivery
Services in India
Mr. Mustafa Abbas Bhotvawala, Nishant Bidichandani, Harsh Balihallimath and Dr. M. P. Khond. (2016)
• The study compares growth and operating strategies of four such aggregator
food delivery companies in a booming Indian market (Swiggy, Zomato,
FoodPanda, and TinyOwl).
• A combined result of a SWOT analysis along with a comparative analysis of
models found that there are a few bottlenecks to early food aggregator
services.
• a) Scalability
• b) Innovation
• c) Cash-burn
Innovative strategies of startup firms in India - A
study on online food delivery companies in India.
Dr. vijaya Lakshmi kanteti (2018)
• This paper discusses and analyses the type of online delivery service
models of four different companies like swiggy, zomato, food panda
and Fassos.
• Full customer transparency: Food delivery companies will have to be
able to match their level of service and transparency, via Smartphone.
In addition, they help businesses optimizing routes and managing
their fleet in real time.
• Drone delivery: The top most valued, unexplored and toughest model
is the home cooked food model. This is truly where the greatest
potential lies and innovation can spin off this industry in a wholly new
direction.
Key Success Factors of Online Food Ordering Services: An
Empirical Study
Zulkarnain Kedah , Yusof Ismail, A.K.M. Ahasanul Haque & Selim Ahmed (2015)

• This study examines the determinants of the customer ordering

experience, which include website trust, customer satisfaction and
loyalty.
• Results suggest that online food ordering companies have to
emphasize on information quality, website design, security/privacy
and payment system towards their customers in order to increase the
level of web trust and satisfaction
Customer Perception and Satisfaction on Ordering Food via
Internet, a Case on Foodzoned.Com, in Manipal
H.S. Sethu, Bhavya Saini (2017)

• The study was aimed to investigate the student’s perception, behavior

and satisfaction of online food shopping and provide solutions to
online sellers based on the results of the research.
• Most of the respondents disagree to the fact that online websites
charge high delivery fees. All respondents were aware about food
zoned website. Almost all customers felt safe paying online. It was
also found that customers buying decision gets affected by the
opinions and experience of friends, family and discussions on online
forums
A Study on Customer’s Attitude and Perception towards Digital
food app services
Dr, Neha parashar ,Ms. Sakina ghadiyali (2017)

• The main objective of the paper was to understand the relation

between facilities and the purchase behavior. Secondly to find the
most popular app in the food delivery industry and understand how
technology has played an important role in the restaurant industry.
• At the time of this study cash on delivery was the most preferred
option of payment by the respondents but other digital techniques
were also in the growth stage. It also discusses that the firms must
also make sure that the apps are comfortable and user friendly.
A Study on the various food ordering apps based on
consumer preference
Mrs. I.karthika, Miss. A.Manojanaranjani (2018)
• In this paper it was found that online food ordering apps nowadays
become fast moving in India, people do not find adequate time to go
for ordering food, because of fast pace of life. It gives a different
experience and consumer can make the food ordering more
fashionable over the internet as they getting used it and becomes
more enjoyable and easier.
A Study on Impact of Online Food delivery app on Restaurant
Business special reference to zomato and swiggy
Dr.Mitali Gupta (January 2019)
• The main objective of this research was to study the impact of
zomato and swiggy on restaurant business.
• The changing urban way of life of the normal Indian is sufficiently
emotional to be ideal for the food-on-the– go and fast home delivery
models to develop at higher rates.
Consumer Perception towards ‘Online Food
Ordering and Delivery Services’: an empirical study
• The aim of this research paper was to discuss the consumer’s
perception towards the online food ordering and delivery services in
Pune.
• it was concluded that Zomato gained positive opinion of majority of
the consumers in comparison to other service providers. It was
mainly because of their better on time delivery and better discounts.
Zomato has been in the first position in online food delivery service
provider and if it includes the minor improvements, it will sustain its
upper hand in forthcoming future.
Consumer's Perception on Online Food
Ordering
• In this research paper, two objectives were set for study. The first one
was to identify the factors which influence the consumer to order
food online and the other one was to know the consumer preferences
on online food ordering services provider.
• The study highlights the fact that youngsters are mostly poised to use
online food ordering services. The study also reveals that the price of
the products, discounts and special offers have the most influencing
factor on online food ordering. The second most influencing factor
was the convenience, the next most influencing factor was on-time
delivery.
OBJECTIVES

• To study general prospective of the Food Industry and identify major

players
• To understand current position of zomato and swiggy in online food
Industry
• To find the leading player amongst zomato and swiggy on the basis
of service quality offered by them
 RESEARCH METHODOLOGY
• Research design: Descriptive research design
• Research Approach: Survey method through questionnaires.
• Sample Unit: Students
• Data Collection Method: This survey is done through primary data collection
method with the help of questionnaires.
• PRIMARY DATA
• Students from different colleges.
• Personnel who continuously use zomato and swiggy app to order their food
• SECONDARY DATA
• Company database
• Internet
• Online advertisement sites
DATA ANALYSIS AND INTERPRETATION
• Q. What is your age?
Zomato Swiggy
Below 20 Between 20 & 30 Between 30 & 40 Above Below Between 20 & 30 Between 30 & 40 Above

0% 0% 0% 0%

10%
15%

90% 85%
Q. What is your gender?

Zomato Swiggy
Male Female Male Female

25%

35%

65%

75%
Q. What is your education level?

Zomato Swiggy
High school & below senior secondary Graduation Post Gratuation& above High school & below senior secondary Graduation Post Graduation

0% 0%

7% 8%
13%

25%

68%
79%
Q. Do you order food online, if yes from which
company do you prefer?
Response No’s

Zomato 20 (50%)

Swiggy 20 (50%)

Total 40
Q. On the scale of 5, how much are you satisfied
with food delivery service provider?
Zomato Swiggy
1 2 3 4 5
1 2 3 4 5

0% 0% 0%
0%
6% 5%

25% 28%

67%
69%
Q. Would you recommend others to buy food
online?
Response No’s

Yes 40 (100%)

No 0 (0%)

Total 40
CHI-SQUARE TEST

• Relationship between Age and Satisfaction level:

• H0= There is no relationship between Age and Satisfaction level.
• H1= There is relationship between Age and Satisfaction level.
Chi-Square Tests

Asymptotic Significance
Value df (2-sided)
Pearson Chi-Square 2.170a 4 .705
Likelihood Ratio 3.481 4 .481
Linear-by-Linear Association
1.351 1 .245

N of Valid Cases 40
Relationship between Education and Satisfaction level:
• H0= There is no relationship between Education and Satisfaction level.
• H1= There is relationship between Education and Satisfaction level.

Chi-Square Tests

Asymptotic Significance
Value df (2-sided)
Pearson Chi-Square 7.565a 12 .818
Likelihood Ratio 11.083 12 .522
Linear-by-Linear Association
1.117 1 .291

N of Valid Cases 40
Relationship between Gender and Satisfaction level:
• H0= There is no relationship between Gender and Satisfaction level.
• H1= There is relationship between Gender and Satisfaction level.

Chi-Square Tests

Asymptotic Significance
Value df (2-sided)
Pearson Chi-Square 1.663a 4 .797
Likelihood Ratio 2.285 4 .684
Linear-by-Linear Association
.028 1 .867

N of Valid Cases 40
Paired Sample T-Test

• H0: Average is same (mean difference is equal to zero)

• H1: Average is not same (mean difference is not equal to zero)
 FINDINGS AND CONCLUSION
• Our brief research clearly shows that there is a positive outlook for
online food delivery apps in terms of satisfaction level and it is
independent of factors like age, education level, and gender.
• If we talk about the difference in satisfaction level between Swiggy and
Zomato we do not found much difference in that so it clearly implies
that there is cutting edge competition between the industry leaders.
• So it will now all depends on their future strategies-that may include
expanding in new cities, deploying high tech technology that may
include use of drones and chat bots for reducing operational cost and
increasing responsiveness.
LIMITATION

• Small sample size: The sample size was only 40 respondents which a very
small size to base a research and give conclusion about the industry.
• Time and correspondent bound: The research was conducted in a short
span of time
• and the respondents mostly comprised of students. The responses of the
respondents may be affected by some particular situation prevailing at
that particular time.
• Might get biased response: As discussed earlier that the sample size was
small also considering that the interview were conducted in a short span of
time, there is high probability that the respondents might have given
biased responses
 REFERENCES
• Dr. vijaya Lakshmi kanteti, Innovative strategies of startup firms in India - A study on online food delivery
companies in India. (2018)
• Dr, Neha parashar ,Ms. Sakina ghadiyali, A STUDY ON CUSTOMER’S ATTITUDE AND PERCEPTION TOWARDS
DIGITAL FOOD APP SERVICES, Jan (2017) .
• Dr.Mitali Gupta, A Study on Impact of Online Food delivery app on Restaurant Business special reference to
zomato and swiggy , January (2019).
• H.S. Sethu, Bhavya Saini, Customer Perception and Satisfaction on Ordering Food via Internet, a Case on
Foodzoned.Com, in Manipal , July ( 2017 )
• Mr. Mustafa Abbas Bhotvawala, Nishant Bidichandani, Harsh Balihallimath and Dr. M. P. Khond. (2016). A
Comparative Study of Aggregator Food Delivery Services in India, September (2016).
• Mrs. I.karthika, Miss. A.Manojanaranjani , A Study on the various food ordering apps based on consumer
preference, (2018).
• Surayadev Singh Rathor, Mahik Chaudhary, consumer’s perception on online food ordering, December (2018).
• Warrington, T., Abgrab,N.J., & Caldwell, H. (2000). Building trust to develop competitive advantage in E-Business
Relationships. In Competitive review ( 160-168).
• Zulkarnain Kedah , Yusof Ismail, A.K.M. Ahasanul Haque & Selim Ahmed, Key Success Factors of Online Food
Ordering Services:An Empirical Study , July (2015).
• Website references (www.swiggy.com, www.zomato.com, www.foodpanda.com, www.ubereats.com)
• Websites for Numerical data (www.crafts.co, www.mckinsey.com)