IDHAYA COLLEGE FOR WOMEN, KUMBAKONAM

(Run by Immaculate Sisters)

Affiliated to Bharathidasan University, Trichirappalli
G.O. No. 237/ dt 22.06.2000
UGC Recognized 2(f) & 12 (B) Institution

DEPARTMENT OF
MANAGEMENT

INTERNSHIP REPORT
October 2021

Name:
Regd. No.:
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 REAL TIME CHALLENGES AGGREGATOR BUSINESS –
SWIGGY

INTRODUCTION

Swiggy is India’s largest online food item ordering & delivery chain, it also tops the map of India
Unicorn nascency lists. It’s a Bangalore grounded nascency started in 2014, and as of now, it’s
expanded to further than 100 Indian cosmopolises, Swiggy propelled quick pick and drop food
delivery operations to make the life of people simpler. It gives a single window to request from an
extensive variety of caffs along with an entire food entering and vehicle arrangement that connects
neighbourhood eateries with savorers. Swiggy is a food ordering and delivery platform in India.
It acts as a ground between guests and caffs. It employed a technology platform that allows
guests to order food from near caffs and get it delivered to their doorstep. Swiggy is Indian’s
largest and topmost valued online food ordering and delivery platform which was innovated in
2014. With 5,000 caffs across 500 Indian metropolises, it delivers food from caffs through a
3,000 strong line, in 45 beats. It has further than a million app downloads.
Abstract

Startups in India come a talk of the megacity in world business script. Youths are coming
up with innovative generalities to counterpart untouched concerned area of consumers.
Presently Indian Online food request is $ 350 billion. Foog technology in board area, online
food delivery apps are just part of it. This abstract study will give further sapience about
arising innovation technologies in café sedulity assiduity and stragies followed by online food
start-up’s Zomato, Swiggy. From this exploration paper we’d understand motorists of online
food spots. Different services given by operation that makes consumers happy and satisfied.
Comfort an Convenience which makes consumer more inclined towards online food ordering.
The exploration concluded that due to urbanization in Indian geography, online food delivery
observation are growing with flying colors. Future of online food ordering website is bright.
Installations, Comfort, Stoner Benevolence are the vital features of online websites success.
OBSERVATION:

The profitability and sustainability of Swiggy as a delivery platform depends largely on its
efficiency in delivering orders and maintaining good customer experience. Building a robust
system to optimize for both, while still being able to respond to shocks (rains, sudden logouts,
sudden increase in demand, traffic congestion, etc.) makes food delivery assignment an
extremely complex problem to While there are many approaches to help solve these problems,
I would like to describe three strategies Swiggy is using to optimize the Delivery times and
cost.
Just In Time Assignment (JIT): 

A way to minimize the time spent by the Delivery Executive at the restaurant waiting for the
food to be prepared. As soon as an order is placed on Swiggy, two wheels are set into motion:
on one side, the restaurant starts preparing an order and on the other side, the system searches
for nearby Delivery Executives and assigns them so they can head to the restaurant and pick up
the order. But here’s the catch: food preparation usually takes much longer than it does for the
Delivery Executive to reach the restaurant.

For example, if food will be prepared within 15 minutes, and we find a Delivery Executive
who will reach the restaurant within 5 minutes, this means the Executive ends up waiting at the
restaurant for 10 minutes.

Assignment Delay = Estimated Prep Time - Avg. First Mile Time

If the first mile time is shorter than average, then we have lost potential for optimization. If it is long
er than expected, we have delayed the customers order. Furthermore, what if after delaying the order for
10 minutes in the above example, there are no eligible Delivery Executive to fulfill this order? Then the
order gets delayed, impacting customer experience A second approach would be to go ahead and do
assignment as normal for an order, but only dispatch the Delivery Executive just in time. Basically,
earmark the Executive for this order (so he is no longer eligible to do other orders), but only dispatch
him when we know he will arrive just in time to pick up the order.
Next Order Assign ment (NOA):

A way to minimize the time spent by the Delivery Executive waiting to be assigned to the
next order and increasing the potential pool of Executives considered for an order. If we
consider Delivery Executives who are almost done delivering their current orders, we will
increase the pool of eligible Executives which in turn increases our efficiency. This is what
Next Order Assignment is all about.

For example, if a Delivery Executive will deliver order O1 within the next 10 minutes and is 5
minutes away from the restaurant preparing order O2 (where estimated preparation time for
order O2 is 20 minutes), the Executive can clearly finish delivering O1 and then pick up O2 in
time.
Batching:

A way to increase the efficiency of Delivery Executives by delivering more than one
order at a time. Batching is a simple concept — if a restaurant gets two orders at the same time from
two customers located nearby, it makes perfect sense to dispatch a single Delivery Executive to deliver
both orders. This helps us to significantly increase the number of orders we can deliver with a fixed set
of Executives (in fact, batching all orders will double the capacity of the entire delivery fleet).

Before we even get into why batching is hard to do (how hard you ask? So hard that
it’s NP-Hard), we need to decide what it means for two orders to be batchable. However,
increasing the promised delivery time (by a fixed buffer time) for all orders is not correct
either, because we have seen that incorrectly increasing promised delivery times usually leads
to fewer people ordering.

1.Placed within minutes of each other by customers who are

2.Located close to each other and
3.To the same or nearby restaurants.
 
Calculated using the formula for delivery charge:
The amount earned by delivery executives for each delivery = Travel pay + Wait
time pay + successful delivery pay
Single restaurant order = Rs. (25 + 5 + 5) = Rs. 35
Multiple restaurant order = Rs. [40 + 5(1st restaurant’s waiting time) + 5(2nd restaurant’s
waiting time) + 5] = Rs. 55
With a single restaurant order:
Full-time delivery executive earns Rs. 565/day and part-time delivery executive earn Rs.
320/day.
With orders from multiple restaurants:
The full-time delivery executives will now earn Rs. 485/day and part-time delivery executive
earn Rs. 265/day.

Challenges:

Order Delivery time: Delivery Time = Max (Assignment Delay + First Mile Time, Prep Time)
+ Last Mile Time

Assignment Delay: How long before we can find a Delivery Executive who can fulfill this
order?

First Mile: How long before they arrive at the Restaurant?

Prep Time: How important time is needed for the Restaurant to prepare the food?

Last Mile: How important time is needed for the Delivery Executive to reach the client from
the Restaurant?

Since the assignment detention and first afar be in resemblant with the eatery’s food
medication, the outside of the two is taken.

Considering the complexity behind delivery from just one eatery’s, having other caffs added at
a distance of indeed 1 KM would make a big difference!
How to break the problem?

We can fluently see that the delivery directors would be incurring losses, going to
multiple caffs for single order have to profitable for them or they can also cancel the order/not
accept it.

The only way to overcome this problem is to make changes to their earnings model –
The quantum earned by delivery directors for each delivery = Trip pay + Stay time pay +
successful delivery pay

Trip pay (first afar + last afar) — consider Swiggy pays INR 1 per nanosecond.

Stay time pay is calculated predicated on staying time at the eatery.

Successful delivery pay — Rs. 20

If we increase the successful delivery pay for delivery directors from Rs. 5 to Rs. 20
considering they are going to multiple caffs for delivering a single order and are suitable to

successfully deliver similar orders.

Statistics:
This is the foremost important information that everyone needs. It helps you understand how
much you’re spending on Swiggy each month, and how much you’re saving from offers and
discounts. Hovering over a bar will give you extra information about your spending in that
month.
Swiggy outages Reported in the last 24 hours
Growing Market of Online Food Delivery
CONCLUSION:

Swiggy has indeed come an integral part of our lives and commodity that we look forward to. This
report tested the dexterity of the authors; still, the brilliance that the assocation has demonstrated in
their strategic thinking, the creative finesse of their dispatches & the innovative zeal of launching new
services tells us that the story of Swiggy is slightly on its first chapter. There are numerous new
delights that the brand will partake with its in the times to come.

Reference

https://bootcamp.uxdesign.cc/swiggy-or-zomato-food-ordering-and-delivery-app-
b4922da4029e

https://aryanjalan.com/swiggy-case-study/

https://bytes.swiggy.com/the-swiggy-delivery-challenge-part-one-6a2abb4f82f6
https://bytes.swiggy.com/the-swiggy-delivery-challenge-part-two-f095930816e3
https://medium.com/@vignesh_rk_/swiggy-order-statistics-creating-a-visual-data-
snapshot-from-your-food-orders-65a7f6f6f856