Food & Grocery

How to Make An App Like Swiggy and UberEats?

  • Published on : November 9, 2018

  • Read Time : 25 min

  • Views : 156

on-demand-food-delivery-app

Millennial and middle age people have settled into the reality that only food delivery apps connecting an extensive range of restaurants, hundreds of cuisines and the flexibility of secured online payment system can delightfully make the way to their stomach.

On the same fervor for Food Delivery App Development, the industry is blooming digitally and made it almost mandatory for every restaurant to get registered in the app those lacking online presence. Apps like Swiggy, UberEats, JustEat and Grubhub seems to have captured the market and set themselves as a statement of a quintessential food delivery app.

If you are a business scrambling to find how food delivery app like Swiggy is created and operated here is your go-to guide with Ready made food delivery app like grofee.

What is Swiggy?

Swiggy, India’s largest online food ordering and delivery platform, operates on a hyperlocal business model. The company aggregates a wide range of restaurants and maintains a dedicated delivery fleet, ensuring swift delivery of orders within 30 minutes. With the user-friendly Swiggy app, customers can effortlessly browse nearby restaurants and explore various cuisines.

Placing an order is as simple as a few taps on the screen. Once the order is received by Swiggy, the restaurants promptly prepare it for delivery. Swiggy’s reliable delivery personnel, known as delivery boys, collect the order from the restaurant and bring it right to the customer’s doorstep.

Founded in July 2014 by Nandan Reddy and Sriharsha Majety, both graduates of BITS Pilani, Swiggy aimed to revolutionize the way India eats through hyperlocal food delivery. Their vision was to bridge the gap between food ordering and delivery, making it seamless and convenient for users. This innovative idea paved the way for the creation of the Swiggy app, which has become a household name across 500 Indian cities as of September 2021.

Swiggy’s success not only lies in its efficient operations but also in its revenue generation strategies. The company earns revenue through various channels, including commissions from partner restaurants, delivery charges, in-app advertisements, and affiliate income. This diverse revenue model enables Swiggy to sustain its operations while providing customers with a seamless and hassle-free food ordering and delivery experience.

Swiggy maintains a strict policy of not sharing customer data with restaurants. Hence, in order to generate higher revenue, restaurants are solely reliant on increasing their visibility on the platform rather than accessing customer data.

What is Swiggy Access?

Swiggy Access, a unique facility resembling a central kitchen base, has been introduced in multiple cities since its launch. This innovative cloud kitchen concept enables restaurants, including Swiggy’s own labels, to establish their kitchens in areas where they may not have a physical presence.

Starting in Bangalore, Swiggy Access has rapidly expanded its reach and is now operational in various cities such as Kolkata, Delhi, Mumbai, and Hyderabad. As a result, this addition has significantly strengthened the existing Swiggy business model, benefitting both restaurants and consumers alike.

How is Swiggy’s business model evolving?

Swiggy’s business model is rapidly evolving with the introduction of new features and services. One notable enhancement is the ability for customers to pre-order meals through Swiggy Scheduled. This new feature allows customers to place orders in 30-minute increments, with a minimum advance time of two hours and a maximum of 48 hours.

By providing this option, Swiggy aims to improve the overall experience for its customers, particularly those who order frequently.

The company is constantly working on expanding its range of offerings and options. This diversified approach includes introducing a plethora of different choices to cater to the diverse needs and preferences of its customers. By doing so, Swiggy aims to gain a competitive advantage and increase its customer base by offering unique and innovative features that set it apart from other food delivery services.

What sets Swiggy’s business model apart is its commitment to organic growth. The introduction of these diverse features and continuous innovation allows the company to naturally attract more customers and expand its market presence. Rather than relying on external factors or acquisitions, Swiggy’s growth is driven by its ability to provide a superior customer experience through its evolving business model.

As Swiggy continues to evolve, the company is poised to position itself as a leader in the food delivery industry. By consistently introducing new features, expanding its range of options, and prioritizing organic growth, Swiggy is setting itself up for sustained success in the coming years.

Key Takeaways:

• To build a successful food delivery app like Swiggy or UberEats, focus on a user-friendly interface and extensive restaurant partnerships.
• Understand the business models, revenue streams, and innovations driving Swiggy’s success in the competitive market.
• Overcome challenges such as fierce competition, finding the right restaurants, and deciding on MVP features.
• Prioritize features like easy navigation, multiple device support, quick data accessibility, secure payment methods, and enticing rewards.
• Choose the right technologies and assemble a skilled development team for a seamless app development process.
• Swiggy’s marketing strategies involve online campaigns and active engagement on social media platforms.
• During challenging times like the COVID-19 pandemic, food delivery apps adapt by moving towards hyperlocal models and diversifying services.

Types of Food Delivery Business Model

A. Aggregator Business Model

In this type of model the middlemen or third party handle the customers and restaurants, make the restaurants their partners, and sell their services under their own brand. The app in this model allows user to log in into the app, view menu items, pricing restaurant details, reviews and feedback. The user can order the item and the delivery is handled by the delivery boy of restaurant.

On Swiggy, you will find a diverse range of restaurants to choose from. This includes local eateries, well-known chains, and even upscale dining establishments. The availability of restaurants may vary depending on your location, but Swiggy’s extensive network ensures that you have access to a wide selection of cuisines and dining options.

B. Food Delivery System With Logistics Delivery Service

This model provides complete logistics support to restaurant partners thus, helping small startup restaurants, food joints and store fronts to manage their operations seamlessly. Also, it becomes a great help to restaurants who can’t initially afford the expenses of logistics operations.

Apps like Swiggy and Ubereats runs on the same food delivery model.

Swiggy Business Model

Swiggy’s business model involves offering a complete food ordering and delivery solution that connects existing neighborhood restaurants with urban foodies. This benefits both the restaurants and the customers, creating a platform where customers can easily order food from a variety of listed partner restaurants and have it delivered to their doorsteps.

Swiggy operates its business on hyperlocal business model. That means the food delivery company aggregates restaurants as well as delivery fleet which collects the food from restaurants and deliver it in less than 30 minutes.

Swiggy charges restaurants for priority listing by implementing higher commissions compared to their current average commissions for delivery-only orders on their platform. This creates a potential revenue stream for Swiggy as they charge a premium to restaurants in exchange for prioritized placement on their platform.

The cost for a restaurant to be listed higher on the platform increases as their position moves up the list, establishing a direct correlation between visibility and the amount restaurants pay for this service. In essence, restaurants that are willing to invest more by paying higher commissions are granted this priority listing, ensuring better exposure and potentially attracting more customers.

The business model works in four steps:

  1. The app allows users to search nearby restaurants or cuisines.
  2. Place an order by opting mode of payment (online or COD).
  3. Restaurants receive the order from Swiggy and they make the order ready to deliver.
  4. Swiggy’s Delivery boy collects the order from the restaurant and deliver it to the customer.

Swiggy generates revenue from the following sources:

  1. Commission from Restaurants : Swiggy earns its major part of revenue from Restaurant Commission for serving as their delivery partner and featuring them on their app that helps them in gaining popularity, get more orders, and make new customers.
  2. Delivery Charges : Swiggy also earns from customers by charging them delivery fees on orders below a certain threshold and certain other conditions such as distance, high order demand, and extreme weather condition.
  3. In-App Advertisements : Other secondary but major sources of income of Swiggy comes from Advertisements. The company earns from promotional banner ads and priority listing on Swiggy app featured by restaurants to earn greater visibility and more orders.
  4. Affiliate Income : Nowadays, apps like UberEats and Swiggy also earn from affiliates like banks and financial institutions by luring customers to use their credit cards in exchange of offers. This way banks can easily sell their credit cards to customers.

Swiggy Competitors

Swiggy is in direct competition with major on-demand food aggregators like Zomato and UberEats. Whereas, other small food-delivery startups like FreshMenu, Foodpanda, and Licious also make in the list.

On-demand Food Delivery App Features

Customers can order from Swiggy by opening the Swiggy app on their smartphones or visiting the Swiggy website. They can search for nearby restaurants or cuisines and place their order through the app or website. Once an order is placed, the restaurant receives the order details through their own Swiggy app. They can view the order and begin preparing it for delivery.

Swiggy integrates the Google Maps API into its app, allowing customers to track their orders in real-time. They can see the location of their order and the estimated delivery time.

Swiggy connects with delivery drivers through their driver applications. When an order is placed, a broadcast signal is sent to nearby drivers who have the app. The drivers have the option to accept the order and deliver it to the customer.

A. Customer App

  1. Easy Registration : Customers should be able to easily register in the app through email id, or mobile no. verification and password.
  2. Customer Profile Management : Customers should be able to manage their profile by entering important details like name, address, phone no, email id, etc.
  3. Search By Area And Current Location : This user-friendly feature will allow customers to search restaurants located nearby their current location and saved addresses.
  4. Choose Your Cuisine : Customers can discover nearby restaurants as per their favorite cuisine.
  5. List Of Restaurant Based On The Area Search : In this feature, based on the areas entered by the customer a list of restaurant is displayed. Clicking upon it, customers will be redirected to restaurants website or individual page.
  6. Place Order : Customers can easily place order by adding the selected cuisines or dishes into the cart.
  7. Apply Coupon : Customers can check the offers, coupon codes, discounts given by the restaurants and redeem them at the time of making payment.
  8. Review : Customers can check the reviews and ratings given by the customers to the restaurants for their services, quality of food, and hospitality.
  9. Select Delivery Choice : Customers should be able to select takeaway or delivery option based on their choices while ordering food.
  10. Secured Payment Integration : Customers should be able make their payments using secured payment gateways like credit/debit card, UPI, mWallet or COD.
  11. Push Notifications : Keep customers informed by sending them the status of delivery like when the order is prepared, packed, out for delivery, and on the door.
  12. Track Delivery Boy : Geolocation integration to track the real-time location of Delivery boy from the restaurant to delivery address.

Read also: Unveil the Most Crucial Features of Online Food Delivery App

B. Restaurant Owner App

  1. Instant order notification : As soon as the customer places order restaurants will receive instant notifications so that they can process the orders quickly.
  2. Assign order to driver : Restaurant owners can assign single or multiple delivery orders to drivers.
  3. Check Order list : Restaurant owners should get order reports to analyze the sales including total customers, total orders and total revenue generated.
    • New Order list: An overview of new customers placing orders can be fetched.
    • Accepted Order list: Orders accepted by the restaurants can be extracted.
    • Delivered Order list: All the orders delivered to the customers are displayed.
  4. Set Order Status : Restaurants can accept/cancel order received by the customer.
  5. Order History : Restaurant owners can track and analyze their business performance by checking the order history and reports of daily sales.
  6. Restaurant Profile Management : Restaurants can create profile, manage addresses, change password, and logout.

C. Delivery Boy App

  1. Registration : Delivery boy can register by entering the email id, personal details and password.
  2. Accept Bookings : Delivery boy has the controls to accept/reject new booking requests.
  3. Route Optimization : While assigning delivery, the app picks the nearest delivery boy and assigns the shortest & fastest routes for on-time delivery.
  4. Manage Status : Delivery boy can update the status of an order placed like order picked up, on the way and order delivered.
  5. Booking History : Delivery boy can easily check the completed bookings.

D. Admin Panel

  1. Admin Dashboard : Through dashboard admin can view total orders, commission earned, total sales and daily turnover.
  2. Category Management : Category management allows admin to search based on the categories like keywords, status (active/inactive), item description etc. Admin can also update them by adding and editing new categories.
  3. Manage Restaurants, Customers and Drivers : Admin can manage and add new restaurants, menu, offers, and reviews. Likewise, Admin can also manage customers’ information with an option to activate/inactivate customers. The admin can add, manage and reassign Drivers.
  4. Manage Location : Admin can manage countries, state, city, area/zip code.
  5. Reports Management : Report on sales per month/per week and orders per month/per week can be extracted by Admin.

Challenges Faced While Entering In The Food Delivery Market

1. Fierce Competition

The food delivery industry is already a crowded space where new entrants have to face stiff competition from the giants like Swiggy, UberEats, Zomato, and other local competitors. These giants are in the market for a long time and have acquired a huge customer base, hence leaving a tiny room of scope for the new players. It is one of the greatest challenges for new businesses to build a good business, gain market traction, and customer response.

2. Finding Partnering Restaurants

Identifying and partnering with the right restaurant partner requires a lot of effort, time, and local market study. Associating with renowned and quality restaurants and listing them on the platform will support to design a good brand image. But, the challenge is to find and filter the right food outlet from the plethora of options.

In addition to that, introducing a straightforward restaurant onboarding process can also give a push to restaurants to get associated with the food delivery app platform and diversify their business presence.

3. Deciding the MVP Features

The analysis of existing competitors and the prospect of restaurant businesses that can be associated with the platform can help to decide which MVP features can be added or excluded in the final version of the app. The MVPs of any product can heavily influence to deduce the cost of food delivery app development.

Apart from that, the food delivery app development company or agency can support precisely in defining the features and cost of the app, which would help to raise a highly effective business.

4. Finding a Reputed App Development Partner

Finding the right tech partner that can convert your business idea to a fully-functional live app is quite difficult. A detailed interview and a number of industry and project related questions needed to be asked before hiring a food delivery app development company. So, despite getting into a rush, take the time and find a suitable partner to take your dream into reality.

Things To Consider To Create An App Like Swiggy and UberEats

1. Easy and Attractive User Interface

A food delivery app should be easy to navigate for users, as the partnering businesses are taking their processes and the entire hotel/restaurant on the app. Likewise, the app should be attractive and easy for users to move from one page to other. Such convenience will make user to return back and enable restaurants to earn loyal customers and build a competitive business.

2. Multiple Device Support

An app should be adaptable to a great variety of devices, in terms of screen sizes and platforms. It is an easy way to grab a wide range of users, as they like to place an order through mobile apps and websites. Such convenience will make user return back on the same platform to place their new order or explore the platform for other options.

3. Quick Data Accessibility

Quick and easy accessibility of all the available data on the platform is the major deciding factor to ensure the users stay and return back. Thus, make sure the data is well-organized and easy to access different restaurants, dishes, menus, and delivery details. These facilities enable the user to place orders effortlessly and engage users in the right manner.

4. Secure and Multiple Payment Methods

In a food delivery app, payment is one of the tedious processes for one, but it can be eased by providing a digital mode of payment. As a requirement, the platform can integrate multiple methods of payment to facilitate a wide range of users instantly. The multiple payment methods provide a sense of security and confidence in the user, which supports building a long-term relationship.

5. Provide Rewards and Offers

Every user appreciates saving a few bucks on their order, this makes their food tastier and turn up a happier user. So, providing offers and rewards is one of the secret ingredients to building a successful and competitive food delivery services platform. These pocket-friendly deals and offers can engage more users with time.

6. Push Notification

Push Notifications are the widely accepted and diversely practiced feature for any online business to engage more users and build a competitive market. This feature makes people aware of the latest introduced offers and services by boosting a personalized experience.

Technologies and Development Team Required To Shape An Online Food Ordering App

As per our experience and industry expertise, we’ve singled down the requirement of technologies and development team required to build a food delivery app like Swiggy and UberEats.

Technologies Required

  • Programming Language- Kotlin (Android) and Swift (iOS)
  • Back-End Development- JavaScript
  • Payment Gateway- PayPal, Braintree
  • Push Notification- Amazon SNS, Firebase Cloud Messaging
  • Mailing Service- Amazon SES
  • Navigation- Google Maps, Google Places API
  • Social Media Integration- Facebook SDK
  • SMS Services- Twilio
  • Restaurant Listing- Grubhub API, FourSquare API
  • Cloud Storage- Amazon S3
  • Database- MongoDB, Redis
  • Analytics- Google Analytics, Mixpanel

Development Team or Required Resources

Swiggy Marketing Strategies

Majorly, Swiggy uses online marketing campaigns for its promotion on various social media platforms like Facebook, Twitter, Youtube, Instagram and Pinterest.

Some of its campaigns include:

  • #Secondtomom
  • #DiwaliGharAayi
  • #SingwithSwiggy

Swiggy’s regular update on Facebook is another marketing effort that opens the gate to customer engagements through promotional offers, giveaways, and for handling customer grievances.

Swiggy and Zomato Marketing Efforts During COVID-19

swiggy-zomato

In the wake of increasing demands for daily essentials being unmet by disrupted supply chains, food delivery apps like Swiggy, Zomato, Grofers, Dunzo are capitalizing by moving from multinational to hyperlocal. These market players are scheduling pickups from local stores, running same day delivery model, offering contactless and cashless delivery. Thus, providing convenience and safety to consumers.

Some of the ways that are helping these unicorns gain tighter grip on consumers are:

  • Doorstep delivery of Alcohol or Liquor
  • Partnering with FMCG firms for delivery of Grocery and other essentials
  • Tie-up with wholesale establishments that don’t often supply walk-in customers
  • Leveraging the under-utilized labor for smoother product deliveries
  • Enters the cloud-kitchen concept or plug-and-play kitchen space

Having said that, these unicorns are competing fiercely even in these challenging times and hitting all the right notes by foraying into the hyperlocal market.

Cost to Create an App like Swiggy and UberEats

1. App Development for the Customer

The customer-based app mainly comprises a dish catalog or services to grab the user’s attention. The user interface of the app design should be straightforward and easy for the customers.

The basic and must-have features of the customer app, includes user registration, placing order, different payment methods, order tracking, delivery time estimation, review, and simple yet attractive design. Such food delivery apps are usually average in complexity and the development costs for these types of apps could be $20,000 to $30,000 or more.

2. App Development for the Restaurant

The restaurant app development is for managing orders and authenticating the user. It is a simple app with the functionality to approve the order, meet the special demands of the customer, and deliver the order. Apart from that, the restaurant app user can modify their menu, access complete delivery details of the customer, track all the upcoming orders and ensure timely delivery.

To develop such an app with a user-friendly design and easy navigation, the average development cost could be about $6,000 to $10,000 or more.

3. App for Delivery Only

The delivery app development is for tracking the order status and ensuring the right and timely delivery. The functionality includes agent registration, order status, and order management- all such features that can be helpful to carry out the order successfully.

To develop such a feature-rich app that facilitates timely and accurate order delivery, its average development cost could be about $8,000 to $12,000 or more.

Overall Development Cost of A Food Delivery App

After analyzing the average cost of all the stakeholder’s app development, the estimated cost of food delivery app development could be around $35,000 to $50,000. This variation in the cost occurs under the influence of various factors and most importantly is due to the addition of features and custom features, as per the requirement of the client.

If you are into restaurant business or any food delivery business, or just an aggregator thinking of on-demand food delivery app development, Codiant can be of your great help for value-added technological solutions and cutting-edge marketing strategies.

Why wait? Launch Your Own Online Food Ordering Mobile App & Web Portal Now!

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Frequently Asked Questions

Swiggy incurs significant administrative and advertising costs to keep the business running and maintain partner satisfaction. These costs cover various operational expenses, such as overhead costs, staff salaries, legal and regulatory compliance, and other administrative functions. The advertising costs are incurred to promote the Swiggy brand and attract customers, ensuring a steady flow of orders to keep the delivery partners engaged and satisfied.

A large portion of the revenue generated by Swiggy is used for maintaining and developing applications and websites. This investment ensures that Swiggy’s technological infrastructure is up-to-date and can provide a seamless experience for customers and delivery partners.

The cost of Swiggy’s delivery fleet is determined by various factors. These factors include the frequency of deliveries, meaning the more deliveries being made, the higher the cost. The location of operations also plays a role, as certain areas may require more resources or have higher operating costs. Additionally, the profile of delivery partners, including factors like their compensation and benefits, can impact the overall cost.

Swiggy manages and incentivizes its delivery fleet by allocating a portion of its revenue to this purpose. The cost of managing the delivery fleet is determined by factors such as the frequency of deliveries, the location of operations, and the profile of delivery partners.

Swiggy spends money on various activities to provide its services and stick to its business model. These activities include managing the delivery fleet, maintaining and developing applications and websites, and incurring administrative and advertising costs.

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