Acquisition project | Swiggy 10-min Delivery

• Core Benefit: In today’s fast-paced world, consumers, especially working professionals, millennials, and Gen Z, are increasingly prioritizing speed and convenience when it comes to food delivery.
• • Swiggy BOLT is solving the need for ultra-fast food delivery.
  • The core benefit is eliminating the wait time associated with traditional food delivery services, making dining more convenient and satisfying.

• Basic Features and Functionalities:
• • Fast Delivery: The primary feature of Swiggy BOLT is its 10-minute delivery promise, achieved by partnering with nearby restaurants and offering a curated menu of quick-prep items.
  • Curated Menu: The product offers a wide range of quick-prep dishes that can be freshly prepared and delivered within the 10-minute window.
  • Restaurant Selection: BOLT partners with local restaurants that are geographically close to the user, ensuring that the delivery time is minimized.
  • Variety of Cuisines: BOLT provides user with plethora of choices in terms of Cuisines to order from. Whether it is Late night snacks, Early morning Breakfast or Lunch/Dinner plans, BOLT has got users covered with relevant options available.

• Present Alternatives:

1. Zepto Cafe: Zepto Cafes function as mini cloud kitchens within dark stores and source from brands like A1 Samosa, Chaayos, Blue Tokai, and Rachel's Sassy Teaspoon. The platform is also aiming to achieve a 10-minute delivery time for their food orders. Zepto Cafe operated from dark stores and manages their own item inventory.
2. Quick-Commerce Platforms: Before Swiggy BOLT, users were turning to quick-commerce platforms like Zepto, Blinkit, and Instamart, which deliver groceries and snacks in a short time frame. These platforms were often used for quick snacks or beverages, but they didn’t offer freshly prepared meals.
3. Traditional Food Delivery Services: Users were also relying on traditional food delivery services, including Swiggy’s regular offerings, Zomato, and others. However, these services typically have longer delivery times, especially for full meals, which can range from 30 minutes to over an hour.
4. Home-Cooked or Pre-Prepared Meals: Some users may have resorted to pre-prepared meals or home-cooked food to meet their need for quick meals. However, these options require planning and preparation, which BOLT eliminates by offering freshly prepared food on demand.
5. Fast Food Chains: Another alternative was ordering from fast food chains that offer relatively quick delivery, but these often come with limited menu options and may not always meet the user’s desire for freshly prepared meals

Since Swiggy BOLT is a new product in an existing category (food delivery), we will analyze both direct and indirect competitors in the quick-commerce and food delivery space.

1. TAM (Total Addressable Market)

Definition: TAM represents the total revenue opportunity if Swiggy BOLT were to capture 100% of the market for the two prioritized customer segments (The Busy Office Professional and The Solo Urban Dweller).

Steps to Calculate TAM:

• Step 1: Identify the total population of Tier 1 cities in India.
• Step 2: Estimate the percentage of the population that fits into the two ICPs (Ideal Customer Profiles).
• Step 3: Estimate the average annual spending on food delivery for each ICP.
• Step 4: Multiply the number of potential customers by their average annual spending to get the TAM.

Assumptions:

• Tier 1 Cities: According to various sources, Tier 1 cities in India include Mumbai, Delhi, Bengaluru, Hyderabad, Chennai, Kolkata, Pune, and Ahmedabad. The total population of these cities is approximately 50 million.
• ICP 1 (Busy Office Professional):
• • Age: 22-28
  • Income: ₹50,000 - ₹75,000 per month
  • Lives with family
  • Assumed to be 10% of the Tier 1 population (based on age and income distribution).
  • Estimated population: 5 million.
  • Average annual spending on food delivery:
  • • Average Order Value (AOV) = 200 Rs.
    • Monthly Ordering Frequency (Repeat Rate) = 8 Orders
    • Monthly Spend = AOV x Repeat Rate = ₹1,600 per month
    • Yearly Spend = ₹19,200 per year.
• ICP 2 (Solo Urban Dweller):
• • Age: 25-32
  • Income: ₹1.2 lakhs - ₹2.5 lakhs per month
  • Lives alone
  • Assumed to be 5% of the Tier 1 population (based on age and income distribution).
  • Estimated population: 2.5 million.
  • Average annual spending on food delivery:
  • • Average Order Value (AOV) = 400 Rs. (As higher earning potential and more spending power)
    • Monthly Ordering Frequency (Repeat Rate) = 10 Orders
    • Monthly Spend = AOV x Repeat Rate = ₹4,000 per month
    • Yearly Spend = ₹48,000 per year.

TAM Calculation:

• ICP 1: 5 million people × ₹19,200 = ₹96,000 million (₹96 billion)
• ICP 2: 2.5 million people × ₹48,000 = ₹120,000 million (₹120 billion)

Total TAM = ₹96 billion + ₹120 billion = ₹216 billion.

2. SAM (Serviceable Addressable Market)

Definition: SAM is the portion of the TAM that Swiggy BOLT can realistically serve based on its product offering and geographical reach.

Steps to Calculate SAM:

• Step 1: Identify the percentage of the TAM that Swiggy BOLT can serve based on its current operational capacity and geographical presence.
• Step 2: Adjust the TAM to reflect the serviceable market.

Assumptions:

• Swiggy BOLT is currently operational in select Tier 1 cities (e.g., Hyderabad, Bengaluru, Mumbai, and Delhi). Let's assume Swiggy BOLT is available in 50% of the Tier 1 cities.
• Swiggy BOLT focuses on quick delivery (10 minutes), which may appeal more to The Solo Urban Dweller (ICP 2) than The Busy Office Professional (ICP 1). Therefore, we assume Swiggy BOLT can serve 70% of ICP 2 and 50% of ICP 1.

SAM Calculation:

• ICP 1: 5 million people × 50% (cities served) × 50% (serviceable) × ₹19,200 = ₹24,000 million (₹24 billion)
• ICP 2: 2.5 million people × 50% (cities served) × 70% (serviceable) × ₹48,000 = ₹42,000 million (₹42 billion)

Total SAM = ₹24 billion + ₹42 billion = ₹66 billion.

3. SOM (Serviceable Obtainable Market)

Definition: SOM is the portion of the SAM that Swiggy BOLT can realistically capture in the short term, based on competition, market share, and operational capacity.

Steps to Calculate SOM:

• Step 1: Estimate Swiggy BOLT's market share in the serviceable market.
• Step 2: Multiply the SAM by the estimated market share to get the SOM.

Assumptions:

• Swiggy BOLT is a relatively new service, and given the competition from other food delivery platforms (e.g., Zomato, Dunzo), we assume Swiggy BOLT can capture 10% of the SAM in the short term.

SOM Calculation:

• Total SOM = ₹66 billion × 10% = ₹6.6 billion.

Summary of Calculations*:

Conclusion:

• TAM: ₹216 billion represents the total potential market for Swiggy BOLT if it were to capture 100% of the market for both ICPs.
• SAM: ₹66 billion represents the portion of the market that Swiggy BOLT can realistically serve based on its current geographical presence and product offering.
• SOM: ₹6.6 billion represents the portion of the SAM that Swiggy BOLT can realistically capture in the short term, considering competition and market share.

*These calculations are based on several assumptions, including the population distribution, income levels, and Swiggy BOLT's current operational capacity.

For the fast-paced urbanites

Who crave fresh & quality meals delivered instantly

Swiggy BOLT is a hyper-fast food delivery service

That delivers an effortless dining experience—delicious meals, prepared by top local restaurants, and delivered to your doorstep in just 10 minutes.

• Swiggy BOLT helps customers satiate their instant cravings by reliably delivering their favorite items within 10 mins.

1. Early Adoption - Swiggy BOLT currently have a good number of users regularly ordering from the flow over weeks. (can't divulge confidential numbers).
2. AHA Moment - Swiggy BOLT delivers on it's promise and has helped multiple customers happy with the service. (Source - We have a very high compliance number to 10 mins delivery and we have done consumer surveys where users are really happy with the speed at which they receive their orders).
3. Repeat Purchases - Swiggy BOLT is now consistently contributing to Swiggy's daily Orders with x % orders daily being BOLT orders since launch. x has been constantly rising and can't be revealed due to confidentiality.

Not able to do a deepdive into data but sharing a high level strategy which I would have researched and detailed out if I had more time and access to existing search data (tried few platforms but all are paid)

Strategy -

Utilize Swiggy BOLT to generate 10 minute delivery related content that can also compete with existing set of Keywords (eg. Food Delivery, 10 minute Delivery etc.) and helps you find whitespaces like 10 min food delivery, quick food delivery. Exact content can be generated basis the existing search volumes for different keywords.

Considering there is very limited direct competition in India for 10 min food delivery, this is a good whitespace to enter and compete with Quick commerce and food delivery in one go.

1. Hook -

Every time a user's Swiggy BOLT order gets delivered in 10 mins and He/She gives more than 4 start ratings on the post order ratings screen.
This ensures that our key promise is fulfilled and user had a great experience (>4 star ratings). As the only time it makes sense to nudge the user to share the experience is this case.

2. Content Creator -

Swiggy BOLT Customers will be the content creator. Our Brand will provide the content template which the user can simply share on his/her preferred social media platform upon a happy experience.

3. Distribution Channel -

Social Media will be the primary choice of distribution channel with LinkedIn being the choice of platforms.

Considering our primary ICPs are both working professionals, LinkedIn makes for an ideal social media channel to propagate positive content loops.

There will be also option to share on other social media platforms as well.

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⭐⭐⭐⭐⭐

Detailed Ratings

• Food Quality: ⭐⭐⭐⭐⭐
• Delivery Time: ⭐⭐⭐⭐⭐
• Packaging: ⭐⭐⭐⭐⭐

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Not able to do a deepdive into data but sharing a high level strategy which I would have researched and detailed out if I had more time and access to Keyword data (tired few platforms but all are paid)

Strategy -

Considering Food Delivery and Quick Commerce are crowded markets and hence there will be a lot of competition for this keywords making them cost ineffective for Paid Ads for Swiggy.

With BOLT, Swiggy can now utilize new set of Keywords (eg. 10 min Food, BOLT Delivery, Quick Food Delivery etc.) to find whitespaces where it can do paid ads with much lesser cost than today. Exact keywords can be selected basis the existing search volumes.