Swiggy, a leading online food delivery platform, has announced a major milestone in its journey. Since its inception in 2014, Swiggy has been dedicated to enhancing the quality of life for urban consumers by providing unmatched convenience. It started as a food delivery service in an industry where the economics were uncertain and many viewed it as an unviable business model. However, Swiggy took on the challenge and pioneered a full-stack food tech offering with a seamless consumer experience from ordering to delivery.
Over the years, Swiggy has invested heavily in the food delivery space to drive category growth and achieve economic viability. The company has introduced innovative offerings such as Gourmet and Guiltfree, expanding its presence in the food delivery market. In a significant move, Swiggy acquired Dineout last year, enabling it to cater to consumers for both delivery and dining out experiences. With Dineout fully integrated into Swiggy, the platform has become the leader in the dining out category, collaborating with over 21,000 restaurant partners across 34 cities.
In a remarkable development, Swiggy’s food delivery business has achieved profitability as of March 2023, considering all corporate costs except employee stock option costs. This achievement is not only significant for Swiggy but also for the global food delivery industry. Swiggy is now among the few food delivery platforms worldwide to attain profitability within just nine years of its establishment.
The company’s success can be attributed to its customer-centric approach and continuous innovation. Swiggy has consistently prioritized customer satisfaction, resulting in high Net Promoter Scores (NPS), repeat orders, and customer retention rates. The platform has gained popularity even in Tier 2 and 3 markets, further expanding its consumer base. Swiggy has also focused on enhancing the experience of its restaurant partners, resulting in a significant improvement in restaurant NPS over the past eight quarters.
Moreover, Swiggy has been proactive in supporting its delivery partners by introducing initiatives like the Swiggy Skills Academy, an on-demand and free ambulance service, and an enhanced insurance policy to prioritize their safety and well-being. These efforts have solidified Swiggy’s position as the top on-demand delivery platform in the country, as confirmed by independent third-party reports.
Looking ahead, Swiggy remains optimistic about the growth potential in India’s food delivery and eating-out sectors over the next two decades. The company plans to continue investing strategically to outpace industry growth and serve underserved segments of the market. In addition to its success in food delivery, Swiggy is excited about its quick commerce business, Instamart, which has gained momentum and is on track to achieve contribution neutrality soon.
Swiggy’s commitment to innovation and its builder mindset have allowed it to expand beyond food delivery into other hyperlocal services such as grocery, hyper-local commerce, and concierge services. The company’s ability to experiment with low-investment, high-value initiatives has proven to be a strength, saving substantial acquisition costs and preserving equity.
While Swiggy celebrates this significant milestone, it remains focused on its mission and aims to achieve more such milestones in the future. The company’s dedication to execution and success is reflected in its continuous innovation and commitment to serving customers and partners alike.
