How to build a food-delivery product in order to compete with the likes of Swiggy and Zomato.

For better understanding i have segmented this blog into following parts

1. Understanding the market

2. User research

3. Business Model Canvas

4. Product Artifacts - ■ User Persona ■ User Journey Map

5. MVP Creation

6. Sketching

7. Wireframing & Prototyping

UDERSTANDING THE MARKET

Target Market Identification by Guesstimate method

Target Market -

Total population = 1.3 bn

Total rural population = 65%

Total Urban population = 35%

TAM(Total available market) = Urban population*total population*smartphone penetration = 35%*1.3 *60% = 273 Mn.

SAM(Serviceable available market) = TAM * People belonging to upper and middle class= 273*50% = 136.5 Mn

Target = % of Population of Tier 1&2 cities * SAM * % of population belonging to 15-45 age * % of student/working professional population*%population who stay alone or with friends = 60%*136.5*45%*70%*70% = 18.06 Mn

Out of 18.06 million - 60% are male = 10.8 Mn

- 40% are female = 7.2 Mn

Assuming 70% of male and 50% of the female will order = 10.8*70% + 7.2*50% = 11 Mn

So the Target Market is 11 Mn.

Porter’s Five Forces

Competitor Analysis

Direct competitors	Indirect competitors
Swiggy	Licious
Zomato	Dunzo
Eatsure	Dine in restaurants

Goals

Swiggy: Swiggy’s objective is to integrate with restaurant partners and provide an optimal experience to our customers

Zomato: Connecting customers to restaurants is Zomato’s main goal.

Company Name	No.of Employees	Delivery Executives
Swiggy	5000+	2 lakh+
Zomato	3755	1.5 lakh+

Particulars	Swiggy	Zomato
Founded year	2014	2008
Founders	Sriharsha Majety, Nandan Reddy, Rahul Jaimini	Deepinder Goyal, Pankaj Chaddah
No. of cities	500	556
Revenue FY19	2,345*	1,011*
Revenue FY20	3,788*	2,386*
% of growth Fy19-20	62%	136%
No of orders/day	14.5 lakhs	10.9 lakhs
Average order value	Rs. 252-278	Rs. 243-300

Acquisitions

Swiggy

Company	Date	Investment	Status
Kint.io	Feb 4, 2019	---	Kint.io acquired by Swiggy
Supr Daily	Sep 1, 2018	---	Supr Daily acquired by Swiggy
Scootsy	Aug 2, 2018	$8M	Scootsy acquired by Swiggy
48East	Dec 13, 2017	---	48East acquired by Swiggy

Zomato

Company	Date	Investment	Status
FITSO	Jan 20, 2021	$1B	FITSO acquired by Zomato
Uber Eats - India	Jan 21, 2020	$206M	Uber Eats - India acquired by Zomato
TongueStun	Sep 5, 2018	$18M	TongueStun acquired by Zomato
Runnr	Jun 6, 2017	---	Runnr acquired by Zomato
Sparse Labs	Sep 26, 2016	---	Sparse Labs acquired by Zomato

Business Model

Zomato

• Advertising - Zomato now charges from restaurants to be positioned prominently on the feed.

• Food delivery - Zomato charges a commission to the restaurants on the basis of orders.

• Subscription programs - With Zomato Gold for consumers and users, and subscription solutions for restaurants, Zomato opened up a steady stream of revenue.

• Zomaland - With Zomaland, Zomato entered the branded live events market last year. Zomato charges users an entry fee to attend Zomaland, where besides food, they can witness live musical performances and other acts.

• White Label Access - Zomato also enables services such as Zomato Whitelabel under which they give offers to the restaurants to develop a customized food delivery app.

• Zomato Kitchens - In order to be able to provide kitchen infrastructure services to select restaurant operators, Zomato works with entrepreneurs to set up and operate Zomato Kitchens under different labels.

Swiggy

• Priority listing - Well, nothing comes for free and better things command higher prices! Swiggy charges premium from restaurants who wish to occupy the top spots in the recommendation list

• Commissions - Swiggy eases the process of delivery for partner restaurants and charges a commission of about 15- 20% from their partners for each order

• Promotions - Swiggy constantly engages in the promotion of various restaurants. Regional places get higher exposure and visibility via banner promotions and they are charged by Swiggy for the same.

• Affiliate income - Swiggy partners with various financial institutions to help their customers pay. This is like a twoedged sword but with benefits on both sides. Essentially, both parties earn.

• Swiggy Super - Inspired by the freemium model, this is a concept via which customers pay for subscribing to Swiggy, and in return, they get to enjoy unlimited free deliveries for orders above Rs 99. No surge fee & exclusive offers are few more add-ons for Swiggy Super subscribers

• Swiggy Go - Just when we thought what else is there for Swiggy to explore, Swiggy understood their customers and came up with Swiggy Go: a pick and drop service for almost anything.

• Swiggy Access - So, what if your restaurant doesn’t operate in a particular area? You can still serve customers via hosting Swiggy delivery-only kitchens.

Value added services

Swiggy -

To customers - Swiggy super, Swiggy go

To restaurants - Swiggy Access

Zomato -

To customers - Zomato Pro, Zomaland.

To restaurants - White label access, Zomato Kitchens.

Shift in Business Model

Swiggy

• Swiggy Instamart - Apart from Swiggy Stores' which lists products from nearby local stores, Swiggy is preparing to launch a chain of virtual convenience stores to deliver grocery and household items within 45 minutes.

• Swiggy Genie - Swiggy started providing a way to get orders from a nearby store as well as allows pickup and drop to send or receive packages from anywhere across the city. The service applies charges on the basis of total distance between the pickup and drop points.

• Swiggy Access - In Nov 2017, Swiggy launched Access, a programme to house multiple restaurant partners under a Swiggy operated central delivery kitchen facility in order to help partners expand to neighbourhoods they don't operate in.

Zomato

• Zomato - Around 2010-11, it came up with an idea to get domain for the purpose of displaying delicious food and launched Zomato.

• Citibank Zomato Restaurant Guide - In May 2012, it launched food print guide named "Citibank Zomato Restaurant Guide," in collaboration with Citibank, tied up with the e commerce behemoth, Flipkart but it has since been discontinued.

• Zomato Gold to Zomato Pro - In August 2020, it upgraded Zomato gold to Zomato pro with extra benefits.

• Contactless Dining - In April 2020, Zomato introduced Contactless Dining to get ready for a post-lockdown world.

• Zomato Market - Signing off - Just after 2 months of launching Zomato Market (to deliver grocery items) amid COVID, it announced that it is going to wind up and it will focus on order - in and dine - out.

Strengths and Weaknesses

Swiggy

Strengths -

• Swiggy is into grocery delivery with its Insta-mart.

• It has its own chain of restaurants (Bowl company, frosty crumble, Art of delight).

• It has delivery fleet called Swiggy genie.

• Better user interface.

Weaknesses -

• Sometimes multiple deliveries are delivered by one person.

• No control over food quality.

• Lack of customer loyalty.

Zomato

Strengths -

• Global presence.

• It has facilities like booking table in restaurant for dine in.

• “On time or free” strategy.

• It has advantage of funding through public offering.

Weaknesses -

• No presence in grocery market.

• No control over food quality.

• Lack of customer loyalty.

Pain Points

Swiggy -

• Sometimes multiple deliveries are delivered by one person.

• 100% cancellation charge when cancelled after 1 minute.

Zomato -

• The Zomato customer service support is non-existent. You can't reach out to them on the instance you have a problem. You have to write an email to which they respond within 48 hours.

• Customer reps not much focussed.

Future Initiatives

Swiggy

• Plans to file for an IPO in the second half of 2021.

• To target the offline eating habit of consumers, Swiggy may start partnering with restaurant owners to enter into table reservations space.

• To earn high margin and to get control on food quality, it may increase investment in independently owned restaurant chain brands such as The Bowl Company in the upcoming year. It may also start utilizing demographic data of users for any kind of campaign and marketing initiative for independently owned brands.

Zomato

• Zomato is coming up with the concept of Cloud restaurants wherein restaurants will not have to get a physical space to actually sell their food products. Instead, they can sell.

• Zomato, in the future, plans to use drones to deliver food directly at the location shared by the customer.

• Investing in small independent business chains or acquiring them could help grow their business

USER RESEARCH

Objective -

• To understand our target population, their experience and expectation from a food delivery app.

Hypothesis -

• People who are not staying with family prefer to order food online order 3 times week.

• Most of the people between the age group 15 to 45,living in a Tier 1 city have ordered food online. • Most people prefer to order lunch/dinner.

• Most people prefer order from same restaurant.

• Most people would prefer to order items from multiple restaurants in the same order.

• Most people prefer deliveries with minimal interactions (restaurants / delivery/ Support).

• Most people prefer payment method which require minimal user input.

Survey Link - https://forms.gle/zoGCt4RiAsi3T5BM8

Survey Response Link - Click here

Insights drawn from Interviews

Hypothesis - 1

• People who are not staying with family prefer to order food online order 3 times week.

• Only 30 % of people who are not staying with family prefer to order food online 3 times a week.

Hypothesis - 2

• Most of the people between the age group 15 to 45,living in a Tier 1 city have ordered food online.

• 80 % of people between the age group 15 to 45, living in a Tier 1 city have ordered food online.

Hypothesis – 3

• Most people prefer to order lunch/dinner.

• 85 % of people prefer to order lunch/dinner.

Hypothesis – 4

• Most people prefer order from same restaurant.

• 50 % of people prefer order from same restaurant.

Hypothesis – 5

• Most people would prefer to order items from multiple restaurants in the same order.

• 55 % of people would prefer to order items from multiple restaurants in the same order. Hypothesis – 6

• Most people prefer deliveries with minimal interactions (restaurants / delivery/ Support).

• 72 % of people prefer deliveries with minimal interactions (restaurants / delivery/ Support). Hypothesis – 7

• Most people prefer payment method which require minimal user input.

• 40 % of people prefer payment method which require minimal user input.

BUSINESS MODEL CANVAS

Introduction and Analysis

The food-tech companies in India have witnessed an exponential growth over the last few years. Currently, Swiggy and Zomato are the market leaders in the Indian food-tech industry. There were other players in the market, but they could not sustain in the competitive market and, hence, sold their businesses.

The industry offers massive opportunity for potential new players who can offer a unique and better experience to the consumers.

Lets discuss various key points of food-tech industry -

• Key partners – key partners are relationships that a company have with other entities that help the business model to work (for instance restaurants, delivery persons, investors, payment gateway partners)

• Key activities – key activities are the things that you need to do in order to deliver your value proposition to customers.

• Key resources – key resources is the building block describing the most important assets needed to make a business model work.

• Value propositions – A value proposition is a promise of value to be delivered, communicated, and acknowledged. It is also a belief from the customer about how value will be delivered, experienced, and acquired.

• Customer relationships – customer relationships describes the type of relationships a company establishes with specific customer segments. A company should clarify the type of relationship it wants to establish with each customer segment.

• Channels – channels are the ways in which the company communicates its offer to individual customer segments. In BMC, channels are located between value proposition and customer segments.

• Customer segments – Your customer segments are the different groups of people or organizations your enterprise aims to reach and serve. This includes users who might not generate revenues, but which are necessary for the business model to work.

• Cost structure – cost structure describe the costs that business occurs through its operation. This include employees, infrastructure, costs associated with all activities.

• Revenue streams – A revenue stream represent the economic value customers are willing to pay for the products and services offered. However, a revenue stream is not a business model, but it does influence how a business model works. In short, revenue streams are the total sales of all products and services.

PRODUCT ARTICRAFTS

User Persona

User Journey Map

MINIMUM VIABLE PRODUCT

Features/Functionalities

• Landing page - Initial screen after the application is launched after download. Provides a way where user can either signup or login.

• Sign-up page - Allows user to sign-up for the app. User can either sign up using google, Facebook, any mail or using mobile number.

• Sign-up verification page -If the user chooses to sign up using mobile number, he needs to validate by entering the OTP.

• Login page - Allows user to login by using their user ID and password.

• Home page - This shows nearby restaurants that are popular. One can view by brands, cuisines etc.

• Search view - This shows recently searched food items/restaurants. User can search by restaurant name or food name.

• Restaurant list view - This shows the list of items that are available in the restaurant along with rating and approximate time to deliver.

• Food list view - Shows the list based on food items. For each food item approximate delivery time and rating is shown.

• Account view - Shows options for handling My account, help and logout.

• My Account/Profile -This helps in addresses. settings. To check the refund status and payment methods used.

• Help - Used for navigating to general issues faced by user and other legal and privacy policies.

• Help and Support (General issues) - Has FAQs and answers to the general issues faced by using while placing an order or delivery tracking etc.

• Help and support (Legal & Privacy) - Lists the terms of use, privacy policy and cancellation policies.

• Cart view -Shows the list of items in cart once items are added and browse restaurants option when there are no items in cart.

• Payment page - Once the items are added to cart and proceeded to payment this view is shown. User can select one of the payment option from wallet, cards, net banking, UPI or Cash on Delivery (COD).

• Order confirmation - This is shown once the payment is successful the order is placed.

• Track order - A feature to track order so that user is aware how long it takes for the food to be delivered.

• Feedback and review - Once the order is delivered, use can rate the food and delivery and give the feedback for the same

Must Have Features

Feature	Rationale behind choosing
Sign-up/login	One cannot use the app without signing up for the app and login as this is used to authenticate the user.
Home Page	To view the nearby restaurants
Search	To search by restaurant name or food name
Restaurant List view/ Menu	To list the items available and add items to cart to place an order
Cart view	To view the items in cart and add increase the quantity to place an order
Order Confirmation	So that the user is aware that the order is placed successfully
Payment	To make payment for the order
Track	To track the order and know the delivery status
Help	For any FAQs, help on terms and conditions or cancellation procedures

Nice to Have Features

• Order details/detailed summary

• Offers & Restaurant discounts

• Subscriptions/Membership

• Reward points/Loyalty program

• Order history

• Multiple filters to ease the navigation

• Faster delivery with subscription/membership plans

• Customer feedback and reviews

• Customer support(Call/Chat)

• Profile page for managing addresses and other personal settings

• Refund options along with Status

• Better navigation view of maps

• Food quantity customization

• Contactless delivery

SKETCHING AND WIREFRAMING

Features selected for sketching and wireframing

Page Name	Explanation
Login page	Initial screen after the application is launched after download. Provides a way where user can either sign-up or login.
Signup page	Allows user to sign-up for the app. User can either sign up using google, Facebook, any mail or using mobile number.
Delivery address detection page	Detects either devices location or any delivery address that user provides and helps in finding restaurants nearby
Home page	This shows nearby restaurants that are popular. One can view by brands, cuisines etc
Restaurant menu page	This shows the list of items that are available in the restaurant along with rating and approximate time to deliver.
Checkout page	Shows the list of items in cart once items are added, delivery location, ETA, Promo/offers, cost breakdown and, the liberty to go back to the menu page of any nearby restaurant
Payment page	Once the items are added to cart and proceeded to payment this view is shown. User can select one of the payment option from wallet, cards, net banking, UPI or Cash on Delivery (COD).
Tracking and feedback page	A feature to track order so that user is aware of where the food is, chat with support/ restaurant/delivery. user can rate the food and delivery and give the feedback for the same.

Wireframes in Navigational Flow format

PROTOTYPE

Prototype link - https://www.figma.com/proto/nAydB5ah8ZAyVPaBFP0BaP/Food-Delivery-App?page-id=0:1&node-id=1:3&viewport=241,48,0.51&scaling=scale-down&starting-point-node-id=1:3