Swiggy: Delivering on Business Continuity Amidst COVID-19
| Case Code: BSTR617
Case Length: 13 Pages
Pub Date: 2020
Teaching Note: Available
| Price: Rs.400
Themes: Business Continuity Planning, Crisis Management, COVID-19, Response Strategies
Abstract Case Intro 1 Case Intro 2 Excerpts
The coronavirus pandemic caused by the severe acute respiratory syndrome coronavirus 2 (SARS‑CoV‑2) came to light in December 2019 when a cluster of cases was reported in Wuhan city in Hubei Province, China. The World Health Organization (WHO) named the coronavirus disease COVID-19 and declared it a pandemic on March 11, 2020. The coronavirus disease, a respiratory illness, spread largely through droplets in the air which were expelled when an infected person coughed or sneezed...
According to Swiggy, demand had bounced back to pre-COVID levels as it onboarded thousands of restaurants every month and more customers ordered food online. In October 2020, Swiggy announced that its pan-India food delivery had recovered to around 80-85% of pre-COVID-19 order value as the unlock phase progressed and more restaurants resumed operations. The recovery was further fueled by IPL 2020 which led to a surge in orders. “Our pan India food delivery has recovered around 80-85 per cent of pre-COVID order value. In many markets, it is at 95 per cent, some even over 100 per cent. Overall Swiggy has delivered over 100 million orders since the beginning of the lockdown,” stated the company...
According to analysts, though Swiggy’s food orders were reaching pre-COVID levels, it faced several challenges going forward. One of the biggest challenges was growing competition. In May 2020, ecommerce giant Amazon launched its online food delivery service called Amazon Food in Bengaluru. According to some analysts, Amazon’s entry into the food delivery space would impact the business of Swiggy and its competitors including Zomato and Uber Eats. “We believe the entry of a cash-rich player such as Amazon has the potential to impact the path to sustainable profitability for both the incumbents [Zomato and Swiggy] over the medium-to-long-term,” stated a report by financial services company, JM Financials. Some analysts were skeptical about Swiggy’s foray into hyperlocal deliveries and grocery and wondered whether it would pay off as the market was very challenging. “Grocery is a thin margin business. If they cannot make food delivery viable, making grocery delivery work will be a greater challenge,” said Rohan Agarwal, Director of RedSeer Management Consulting...
Exhibit I: A Note on Design Thinking (DT)
Exhibit II: Key Financials of Swiggy (2018 and 2019)
Exhibit III: Top Food Delivery Apps Worldwide for January 2020 by Downloads
Exhibit IV: Average Daily Orders for Swiggy and Zomato (Jan 2020-April 2020)
Exhibit V: Food Order Journey at Swiggy
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