Swiggy Business Model Explained: How It Works & Makes Money in 2025

Need food fast? Groceries in minutes? Just Swiggy it.

• For Priya, a hot meal arrives at her doorstep with just a tap on the Swiggy food delivery app.
• For Rohan, groceries are delivered in minutes through Swiggy Instamart.
• For Anjali, a fresh meal reaches her train seat via Swiggy Food on Train.

Since 2014, Swiggy has grown from a simple food delivery app in Bengaluru to India’s leading food delivery app. It serves over 24.7 million weekly active users across 680+ cities in India.

In FY 2024–25, Swiggy’s consolidated adjusted revenue grew 44.4% year-over-year, reaching ₹4,718 crore. Its average monthly transacting users rose 34.5% year-over-year, totalling 19.8 million.

Swiggy delivers fast, reliable, and convenient services from meals and groceries to packages and travel-ready food. Behind this convenience is an innovative Swiggy business model that powers its growth and dominance in India’s hyperlocal delivery market.

How does Swiggy make all this possible and turn convenience into profit? Keep reading to uncover the secrets behind its success.

What is Swiggy?: An Overview

Swiggy is India’s largest online food ordering and delivery platform, operating a full-stack hyperlocal delivery model. It manages the complete customer experience—from placing an order to delivering it via its fleet of delivery partners.

Founders & Launch

Founded in August 2014 by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini, Swiggy began in Bengaluru and has since expanded nationwide.

Swiggy at a Glance (2025)

• Restaurant Partners: 250,000+
• Delivery Partners: 540,000+
• Cities in India: 700+
• Instamart Operations: 124 cities

Swiggy’s rapid expansion, especially in quick commerce through Instamart, reflects its strong focus on fast delivery and meeting growing consumer demand across Tier 1, 2, and 3 cities in India.

A look at Swiggy’s key milestones:

• 2014: Swiggy is founded in Bengaluru, starting as a dedicated food delivery service.

• 2017: Launches Swiggy Access, a program for cloud kitchens, allowing restaurant partners to expand their reach.

• 2019: Expands its offerings beyond food with Swiggy Stores (general product delivery) and Swiggy Go (parcel service), the latter later being rebranded as Swiggy Genie.

• 2020: Launches Swiggy Instamart, a quick commerce grocery delivery service, which experiences significant growth during the pandemic.

• 2022: Acquires Dineout, a dining and restaurant reservation platform, further diversifying its services.

• 2024: Converts to a public limited company and confidentially files for an Initial Public Offering (IPO).

• 2025: Discontinues its same-day delivery service, Swiggy Genie, in May, reflecting a strategic shift in focus towards profitability and its core food and quick commerce businesses.

Swiggy has grown beyond a simple food delivery service to become a multi-vertical platform that offers a range of services to meet the diverse needs of urban consumers.

• Swiggy Food: This is Swiggy’s primary service, a food delivery marketplace where customers can find and order meals from a wide selection of restaurants.
• Instamart: This quick commerce service allows users to order groceries and household items, which are delivered from a network of dark stores.
• Swiggy Dineout: Swiggy’s dining-out service helps users discover restaurants, book reservations, and pay for their meals while also offering promotions.
• Swiggy Giftables: This new instant gifting platform allows users to send curated gift packages, including premium chocolates, cakes, flowers, and electronics, with delivery times ranging from 10 minutes to one hour.
• Other Services: Swiggy also operates other business verticals, including Lynks Logistics for goods transport and Swiggy Minis, which helps local brands set up mini-storefronts on the platform.

This diversification makes Swiggy a food delivery app and a full-scale convenience ecosystem.

• Behind its diverse services, Swiggy operates on a technology-driven platform.
• It connects customers, restaurants, and delivery partners in real time.
• This enables seamless ordering, preparation, and delivery across food, grocery, and other convenience services.

How Swiggy Works: The Three-Sided Marketplace

Swiggy’s model is a three-sided marketplace that orchestrates a complex, real-time transaction among three distinct groups.

Customers (Demand Side):

A customer opens the Swiggy app, browses menus, places an order, and pays for it. They are looking for a convenient way to get food delivered without cooking or dining out.

Restaurants (Supply Side):

The restaurant receives the order through Swiggy’s platform. They prepare the food and notify Swiggy when it’s ready for pickup. They gain access to Swiggy’s large customer base and a managed delivery system, allowing them to focus solely on food preparation.

Delivery Partners (Service Side):

Swiggy’s proprietary algorithm assigns the order to a nearby delivery partner. The partner receives the order details, picks up the food from the restaurant, and delivers it to the customer’s location. They earn money for each successful delivery, with the flexibility to work independently.

Swiggy’s technology acts as the bridge that seamlessly connects these three entities. Its system manages everything from order placement and payment processing to real-time order tracking and route optimization for delivery partners. This interconnected model creates a powerful network effect: more restaurants attract customers, attracting more delivery partners, ultimately strengthening the entire ecosystem.

Curious how delivery startups monetize? Learn more in our deep dive on how food delivery startups make money.

Swiggy Business Model Canvas: A Blueprint for Success

The Business Model Canvas breaks down Swiggy’s operations into nine key components:

Swiggy’s Target Audience

• Tech-savvy Millennials and Gen Z: Value speed and convenience; core demographic.
• Food enthusiasts: Use the app to discover new cuisines.
• Students and working professionals: Need quick daily meals.
• Families and households: Use Instamart for groceries.
• Value-conscious customers: Respond strongly to discounts and offers.
• Restaurants and delivery partners: Benefit from flexible work and platform support.

Value Propositions:

• For Customers: Offers fast and reliable food delivery, live order tracking, a vast selection of restaurants and cuisines, and exclusive deals. Note that most orders now have a “small order fee” if the order value is below a certain amount (e.g., ₹149 or ₹199), and delivery fees are often applied based on distance and demand, unless the customer has a Swiggy One membership.
• For Restaurants: Provides access to a large customer base, a dedicated delivery fleet, and valuable data-driven insights to boost sales and efficiency.
• For Delivery Partners: Provides a flexible source of income, on-demand work, and a simple app to manage deliveries.

Channels:

Swiggy primarily uses its mobile app and website to interact with customers. It uses digital marketing, social media, and strategic partnerships to acquire new users and restaurants.

Customer Relationships:

Swiggy maintains a mostly automated, self-service relationship with customers through its app (live chat support, automated notifications). It has dedicated account managers for its key restaurant partners.

Revenue Streams:

Swiggy’s primary sources of income are:

• Commissions from restaurants (typically 15-25% on each order).
• Delivery charges are paid by customers, which can include “surge” pricing during high-demand times.
• Restaurants pay for advertising and promotions for better visibility on the app.
• Its “Swiggy One” loyalty program includes subscription fees, free deliveries, and other perks.

Key Activities:

The critical activities are developing and maintaining the core technology platform, managing and onboarding restaurants and delivery partners, and optimizing delivery logistics to ensure speed and efficiency.

Key Resources:

Swiggy relies on its robust technology platform (app, website, and algorithms), extensive network of restaurant partners, and a massive fleet of delivery partners.

Key Partners:

The core partners are the restaurants that provide the food and the delivery partners who handle the logistics. Payment gateways are also crucial for seamless transactions.

Cost Structure:

Significant costs include salaries and incentives for employees and delivery partners, technology development and maintenance, and considerable spending on marketing and advertising.

Explore more on the cost of building similar apps via our blog on on-demand food delivery applications like Zomato & Swiggy.

Swiggy’s Cost Structure

The expenses for a company like Swiggy are substantial and critical to its operations. The main cost centres include:

Delivery Partner Salaries & Incentives: This is the single most significant expense, covering the per-delivery payments and incentives that keep the delivery fleet motivated and on the platform.

Technology Infrastructure: The cost of maintaining servers, developing new features, and managing a complex digital platform.

Marketing & Promotions: Heavy spending on advertising, brand building, and customer discounts to maintain market share against fierce competition.

Customer Support & Operations: The cost of running a 24/7 support team and managing order-related issues.

Curious how delivery startups monetize? Learn more in our deep dive on how food delivery startups make money.

How Swiggy Makes Money: A Multi-Pronged Revenue Model

While delivery fees are what most users see, Swiggy’s revenue model is far more complex and diversified. The company generates revenue from multiple sources, allowing it to build a more sustainable and profitable business.

1. Commission on Sales

This is the primary revenue stream. Swiggy charges its partner restaurants a commission on every order placed through its platform. This commission typically ranges from 18% to 30% of the order value and can be higher for premium restaurants that want better visibility. This percentage is not fixed and is negotiated based on the restaurant’s size, order volume, and tier.

2. Delivery Fees

Users pay a variable delivery fee based on distance, time of day (peak hours), and weather conditions. Swiggy also charges a “platform fee” on every order, a simple and effective way to boost revenue. As of late 2025, Swiggy had reportedly increased its platform fee to ₹14 in select locations.

3. Vendor Partnerships & Advertising

• Sponsored Listings: Restaurants can pay a premium to appear higher in search results or get featured on the app’s homepage.
• Data Analytics Services: Swiggy offers data-driven insights to its partners, helping them optimize their menus, pricing, and promotions.

4. Subscription Services (Swiggy One)

The Swiggy One membership program generates recurring revenue. Subscribers pay a monthly or yearly fee for benefits such as free food deliveries, free Instamart grocery deliveries, exclusive discounts on Swiggy Dineout reservations, and other premium perks. This also significantly increases customer loyalty and retention, with the membership base crossing 5.7 million members in 2025.

5. Diversified Revenue Sources

Swiggy has strategically expanded into new verticals, each with its own revenue model:

Swiggy Instamart: The quick commerce arm delivers groceries and essentials in minutes. Revenue comes from commissions from merchants, delivery fees, and advertising.

Swiggy Dineout: A platform for restaurant reservations and dining deals. It earns money through commissions on table bookings and bill payments. The segment reportedly turned profitable in Q4 FY2025.

Swiggy’s diversification allows it to compete effectively while keeping revenue streams strong. For an even deeper dive into this topic, check out our blog on on-demand food delivery apps like Swiggy.

The Cost of Building a Swiggy-like App

For entrepreneurs looking to enter this space, replicating a platform like Swiggy is a significant investment. The cost can vary widely, but a basic app with core features could cost anywhere from $10,000 to over $50,000. The main cost factors are:

Platform: Developing a native app for both iOS and Android.

Features: The complexity of features like live tracking, payment gateways, and AI-based recommendations.

Technology Stack:  The choice of programming languages (e.g., Python, Swift), databases (e.g., PostgreSQL, MongoDB), and scalable cloud services (e.g., AWS, GCP).

A full-service software development partner like iCoderz Solutions can help you build a custom, scalable app that meets your unique needs. Rather than opting for a generic template, partnering with a company that offers end-to-end development ensures you get an innovative and robust solution. This strategic approach allows you to launch a unique product tailored for your market, backed by professional support and technical expertise

Conclusion: Swiggy Success Formula: Tech, Speed & Growth

Swiggy started as a simple food delivery app and grew into India’s leading on-demand delivery platform. Its secret? A tech-driven, customer-first approach that connects customers, restaurants, and delivery partners seamlessly. Expanding into Instamart, Dineout, and Swiggy turned convenience into a complete hyperlocal ecosystem. Fast logistics, innovative technology, and multiple revenue streams keep it ahead of the competition.

Ready to launch your app with a similar impact? Collaborate with iCoderz Solutions for a seamless, customer-centric build. Contact us now!

FAQs

What is the Swiggy Business Model called?

It is primarily known as the Aggregator Business Model or a Three-Sided Marketplace.

How does Swiggy make money?

Swiggy makes money through multiple revenue streams, including commissions from restaurants, delivery fees from customers, subscription fees from Swiggy One, advertising revenue from sponsored listings, and other ventures like Instamart and Dineout.

What is the benefit of building an app like Swiggy?

The main benefits are scalability, high potential for market growth, and the ability to tap into the growing demand for on-demand services.

Is Swiggy B2B or B2C?

Swiggy is primarily a B2C (Business-to-Consumer) platform, as its core service is delivering to individual customers. However, it also has strong B2B (Business-to-Business) partnerships with restaurants, merchants, and logistics partners.

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