Why Demand for App Like Swiggy is Rising Among Entrepreneur Fraternity

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Since the invention of sliced bread, food delivery apps have been considered the best invention ever.  We cannot imagine how we could live without it. It makes our daily lives so much easier and more efficient. That’s why Swiggy and other food delivery apps have become so popular with young people.

In the otherwise lackluster restaurant industry, millennials, who are time-starved and looking for convenience, are showing a growing affinity for food delivered to their homes. Is it possible that this behavior spells the end of home-cooked meals and kitchens? “Is the kitchen dead?” was the title of a recent report from” investment bank UBS echoed many other studies and predicted increased sales of food orders via the internet globally.

UBC estimates global delivery sales could rise from $35 billion to $365 billion by 2030, an increase of more than 20%. The lockdown period has been a time when consumers have spent more time with their devices than ever before, boosting engagement in many mobile app verticals.

As one of the fastest-growing verticals of 2020, food delivery offered consumers safe, convenient, and socially-disconnected services. This convenience is the primary reason food delivery apps have gained traction, according to Forrester’s research. Apps for food delivery are breaking records every day due to their popularity among consumers.

The rapid growth of restaurants that have taken swift digital turns can be easily seen in the rapid adoption of food delivery apps. The purpose of this post is to help you understand why food delivery app like Swiggy is trending. Nonetheless, before we move forward, let’s review how COVID-19 affected the food industry and how the process of food delivery changed in response to the pandemic.

Food at Your Couch: The Rise of Food Delivery Apps

The Rise of Food Delivery Apps

Source: Research and Markets

These days, food delivery is nothing luxurious as it was considered previously. With more people working from home and increasing purchasing power, there is now a higher demand for delicious meals and these are the two major reasons food delivery apps are so popular and compelling restaurant owners to go digital. 

As a result, entrepreneurs want to taste their luck in this industry, and demand for food delivery app development is increasing. Want to know where the food delivery market is heading? Checkout following statistics, 

  • Online food ordering and delivery have grown 300% faster than conventional dine-in sales since 2014. 
  • Another research conducted by Statista reports that the platform to consumer delivery sector is forecasted to cross $96.8  million globally by 2024. 
  • Considering the sudden outbreak condition, this growth will keep increasing for the foreseeable future. 
  • Indeed, the pandemic has changed the way people shop and eat, increased the need for doorstep deliveries and social distancing protocols are another major reason the food delivery market is experiencing major growth. 

It would not be wrong to say that the year 2020 seems to have marked a golden era for the food delivery market especially for the third-party delivery apps like UberEats, Deliveroo, Postmates, and Zomato. Not only the food delivery market but grocery delivery service provider, Instacart also reported that they have achieved the goal for the next two years in just three weeks of the first global lockdown. 

No doubt, the competition is cut-throat but novice entrepreneurs should not think twice before entering the market because if your idea is unique and comes up with amazing solutions with the latest features, there is a chance to surpass all these rivals in no time. Competitor analysis and analyzing gaps in their services can help you come up with top-notch solutions. 

From the above statistics and researches, one thing is clear that restaurants and other food delivery providers need to stay abreast of ongoing trends to stand tall in the crowded market. The underneath trends are ruling the food delivery market and will continue to do so for the upcoming years. 

  • Third-party food delivery apps dominate the market 
  • Restaurants will start to rely on their delivery fleets
  • Cloud kitchen business model
  • Order via multiple options including tweet, smartphone, tv, etc.
  • Delivery transformation channels
  • Subscriptions for food delivery is on the rise

In a nutshell, the global food delivery market is skyrocketing but here we will further talk about the Indian food delivery market and why an app like Swiggy is trending and making headlines. 

How Swiggy Is Eating Up Big Bite in Indian Food Delivery Market 

Indian Food Delivery Market

Source: Business Insider India

The Indian food delivery market is touching the sky. With Zomato’s acquisition of UberEats’ India business for USD 206 million last March, funding of Swiggy from SoftBank, and Amazon’s entry into the food delivery market, the Indian food delivery market is getting hotter and catching the attention of global investors. 

Known as one of the few sectors to grow at a double-digit compound annual growth rate (CAGR), the global online food delivery market is expected to reach USD 113 billion in 2020. One of the fastest-growing sectors and one of the largest investments is the online food delivery market in India, which is worth almost USD 4.66 billion in 2020.

Instamart, one of Swiggy’s grocery delivery services, will receive $750 million as part of an investment by the Indian startup to ensure its viability in a highly competitive market. Launched last year in Bengaluru and Gurugram in India, Instamart is expected to reach a run rate of $1 billion in annualized gross merchandise value in the next three quarters, Swiggy said. 

The company will also begin 15-minute deliveries in top cities by January 2022, which will cover 18 cities in the country and serve more than 1 million orders weekly. Food and grocery delivery apps like Swiggy benefited from the lower number of people stepping out during last year’s pandemic-related lockdown because of health concerns. 

It means Swiggy is successful in both segments whether it’s food or groceries, this is why entrepreneurs want to create an app like Swiggy as there is a sudden surge in digital ordering victoriously right after the lockdown. And if you are still skeptical about making a food delivery app like Swiggy and how it might be beneficial for your business, here we have presented some reasons. Let’s explore. 

Time is Crucial for Millenials 

Delivery apps promise to satisfy customers by speeding up the process. In addition to delivering food in a timely manner, they also work best during holidays and rush hours, when food establishments are too busy to accommodate diners in-store. Fridays, Saturdays, and Sundays are usually the busiest days for online platforms since 74% of orders are placed during these days.

Payments Made Everything Easy

Since millennials are not into carrying a lot of cash, food delivery apps have become so popular among them. An app like Swiggy makes it easy for users to pay for food using their smartphones by incorporating easy payment gateways. 

It is particularly useful for users who do not have enough cash and do not want to withdraw money from an ATM. It is now possible to order food with the food delivery app without the hassle of not having enough cash. Don’t forget to add online payment integration to the list of features you need for your app similar to Swiggy if you are thinking about how to create one.

Coupons and Discounts 

Who does not like to enjoy a delicious meal at their home on weekends with lucrative discounts? We all, right? Customers have become tech-savvy and always looking for hot deals to satisfy their needs. Besides, restaurants also come up with attractive offerings to make their customer base strong. 

Today, more restaurants either list themselves on apps like Swiggy or come up with their own solution because it adds another revenue channel to their profitability and also stays ahead in the volatile business scenario. 

The Impeccable Marketing Power

It is said that more than 90% of customers heard about the services and products from social media platforms. Facebook, Instagram, and WhatsApp have been taking over the social media market and keeping customers engaged with informative content.  And an app like Swiggy is great at advertising and engagement on social media. 

This will not only boost customer engagement but also allow restaurants to get better exposure over time. Social sharing, push notifications, email marketing tools, reviews, and feedback, etc. help entrepreneurs to make a strong online presence. 

Now, It’s Your Turn

We live in a world that is increasingly based on convenience – almost anything you want can be delivered to your home at the click of a button. Food delivery is no exception. Customers, particularly Millennials, who represent a growing proportion of the population, are increasingly seeking out their favorite foods whenever and wherever they want to.

With the COVID-19 crisis, it quickly became a necessity. Mobile food delivery was among the fastest-growing trends during the previous decade. Investor opportunities and competition are abundant in the industry. The chances of success are good depending on how smart the business strategy is and how agile the product development is. 

Food delivery apps are growing significantly amid COVID, indicating a multidimensional growth potential in the future. The need for digitalization in the food delivery business is becoming increasingly apparent as customer preferences and behavior change. However, it will take time for it to reach its full potential before it delivers on the promise it makes.

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