Swiggy has become a household name, and it is the first name that comes to one’s mind when we think of ordering food. This company has witnessed a phenomenal growth and it has changed lives of thousands. If you too want to partner with Swiggy, but are stuck with a question of why and how to open a franchise with Swiggy, then you have landed at the right place.
In this article, you will get a detailed guide on how you can start your franchise journey, and be successful in your own life.
After, reading this article, we are sure that you will not have an iota of doubt in your mind, and you will be well versed with how you can be a partner of the India’s largest food delivery platform.
What Is Swiggy?
Swiggy is a popular food ordering and delivery platform based in India. It was founded in 2014, and is currently operating from more than 500 cities of the country. Swiggy is based in Bengaluru, and it was founded by Sriharsha Majety and Nandan Reddy. Later on, they were joined by Rahul Jaimini.
The idea behind opening Swiggy came up in the minds of its founders after they saw that there was a huge untapped gap between food ordering and delivery in India. They decided to cash in the opportunity by bridging this gap. Consequently, they started an online food delivery website, and later an app, that has more than 10 crore downloads on the Google Playstore.
Currently, Swiggy boasts of having presence in more than 500 cities, 250000 plus restaurants, 15 to 30 minutes delivery, the real time order tracking and contact less food delivery.
Swiggy Business Model
Swiggy’s business model is based upon hyper-local on demand food delivery system. It consists of two main parties, and they are:
- Restaurant Partners: These are the restaurants or kitchen owners, who are listed on the Swiggy app. They get their food orders through the Swiggy app and then they deliver it through the same app.
- Delivery Partners: These are the people who are associated with picking up of food items from the restaurant partners and then delivering it to the customer.
The main purpose of Swiggy here is bringing more and more restaurant owners on platform, recruiting and supervising delivery partners, data handling, management of operations and payments, and grievance resolution.
How Swiggy Makes Money?
Before you set out to open your franchise in your city, you should know how swiggy makes money. Swiggy has various ways, through which it makes money, and they are:
- Delivery charges
- Revenue From Advertisements.
- Income From Swiggy access.
- Earning from affiliates.
They are elaborated below:
In order to facilitate the business, Swiggy charges a commission to the tune of 15% to 25% on the order value from the restaurant partners.
2. Delivery Charges
Swiggy takes a delivery charge for orders amounting to less than Rs 250. The charges for such small orders are typically around 20 Rs.
3. Revenue From Advertisements
Swiggy also earn from advertisements on its platform as it provides paid banner promotions and priority restaurant listing to the restaurants.
4. Income from Swiggy Access
Swiggy access is a paid cloud kitchen service, through which restaurants can function in such areas, where they are not actually present.
5. Earning from Affiliates
This is yet another revenue stream for Swiggy. The company sells various affiliate products to its customers, which include credit cards and other financial services, and earn a huge amount of commissions.
So this was all about how Swiggy makes money. We are sure that you might have understood the Swiggy business model now.
Before we set out to answer your query on how to open a Swiggy franchise, you should know whether it is worth it or not. Further, you should check whether this Franchise Business is profitable or not.
Why should I get A Swiggy Franchise?
You should get a Swiggy Franchise in your city, because;
- It will give you a larger reach, as Swiggy is the largest on hyper-local food delivery platform of India.
- It will enhance the visibility of your brand.
- doing so will make a larger fleet of delivery partners available to you.
- it will make your business grow and reap more profits.
- Being listed on Swiggy app will make you get your first order very quickly.
- Swiggy provides technical support and proper training to its partners from time to time.
Is Franchise Business With Swiggy Profitable?
Swiggy has shown an enormous growth in the last few years. It has expanded its operations through out the length and breadth of the country, and running a Swiggy franchise is going to be very profitable.
The variety of food items, the short delivery times, the cloud kitchens, the data driven business and the busy nature of people are the various factors that make Swiggy and its franchises reap good profits.
The profits, however vary from one franchise to another, and it depends upon;
- location of your business.
- your operational and management costs.
- types of food that you deal in.
- how well do you use the customer data.
- the quality and price of your food items.
Clearly, the trust and the popularity of Swiggy is what will make its franchises profitable.
How To Get A Swiggy Franchise In Your City
In order to get a franchise in your city, you will require the following documents;
|FSSAI Licence||This license is required to run any food business in India.|
|Aadhar Card||This is required for KYC purposes|
|Restaurant Menu||This is to ascertain the items that you will deal with.|
|Bank Account Details||This is also for KYC purposes|
|PAN Card||This is to ensure that you are tax compliant|
|Cancelled Cheque / Bank Passbook||This is to confirm your bank details|
|Phone Number||It will act as a mode of communication|
Now, if you have your documents ready, you can apply for Swiggy franchise by following the steps given below:
- Go to the official website of Swiggy.
- Now click on “partner with us” section.
- Enter your Phone number, and click on get OTP.
You will receive an OTP. Enter that to continue.
- Enter your details, like restaurant details, PAN details etc, and click on submit.
After successfully submitting the application form, you will get approval within 7 to 14 days.
It is pertinent to mention here that you should have a name for your restaurant in order to apply for the franchise.
Swiggy Franchise Cost
So, if you are planning to open a Swiggy franchise in your city, then you must be wondering about its cost. There is a good news for you as getting a Swiggy franchise is totally free of cost.
Since, Swiggy is not a restaurant itself, it is just a platform that allows restaurants to list themselves so as to maximise their reach. It therefore does not take any franchise costs from the restaurant partners.
There is, however a one-time fee onboarding fee charged by Swiggy towards the system & admin costs. It is cut from the weekly payouts once you start receiving orders from Swiggy.
Profit Potential Of A Swiggy Franchise
On your own, your restaurant may be known only in your local area, but with it being listed on the Swiggy platform, it will have a very wide reach. This wide reach will bring you more customers and hence more sales. More sales means more profit.
In general, it is estimated that restaurant owners working as franchise owners will make a profit of 20% to 35% of the total sales made by them. The profit percentage depends upon the area of your operation, the food items you deal with, and the demand of your food.
While selling your items on the Swiggy platform, the franchise owners should keep all the commissions and charges, that they have to pay to various parties in their mind. The charges include commission to Swiggy and GST, among others.
Swiggy Contact Details
If you want to contact Swiggy company, you can do so on their phone number and email address given below;
Regional Office of Swiggy: 3rd floor, Maruti chambers, Survey no17/9B Bangalore.
Phone Number: +91,080, 600, 06600
Official address of Swiggy: Kurla road, Mumbai, Maharashtra, 400072, India
So this was all about ” how you can start a franchise with Swiggy“. We are sure that you would have loved reading this article. If you did, kindly share this article with your friends.
Getting a Swiggy franchise is very easy. All you have to do is to go to the Swiggy website at www.swiggy.com. After this go to the “partner with us” section, and fill the application form. That is all. You will get the the approval within 7 to 14 days from your application date, if everything is found acceptable.
In order to open a Swiggy franchise, you will require various documents like FSSAI license, Aadhar card, Restaurant menu, cancelled cheque, bank account details and a PAN number.
Getting a franchise of Swiggy is free of cost. All you have to do is to apply for a franchise on the Swiggy website, and if everything is found correct, you will get an approval notice within 7 to 14 days. But, a one time onboarding fee will be charged from you, that you will have to pay on weekly basis, once you start your operations.