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After filling up its CXO and VP level positions, on-demand food delivery platform Swiggy is rallying its senior leadership to achieve its target of 1 million orders a day by 2020.
The start-up strengthened its top deck with 16 new appointments into CXO and VP-level roles over the last 23 months. This month, Swiggy announced two top management appointments – Vivek Sunder, an FMCG industry veteran from Proctor & Gamble, was appointed as Swiggy’s first Chief Operating Officer and Dale Vaz from Amazon India was appointed as the Head of Engineering and Data Sciences.
New faces
Apart from Girish Menon, who was appointed as VP-HR in April 2016, other top executives who have joined the start-up across multiple roles since August 2016 are Rahul Bothra (CFO), Vishal Bhatia (CEO - New Supply), Joseph Cherian (COO – New Supply), Anuj Rathi (VP-Products), Srivats TS (VP-Marketing), Srinath Rangamani (VP-Design), Ashley D’souza (VP-Business), Sandeep Mina (VP-Supply), Ashish Chatterjee (VP-Products), Amit Garde (VP-Engineering), Sachin Kotangale (VP-Operations), Alok Jain (VP-Entrepreneur in Residence) and Madhusudhan Rao (VP-Engineering).
On hitting a new high of delivering 50,000 orders a day in August 2016, up from 3,500 orders the previous year, Swiggy has set itself a new target of delivering 1 million orders a day by 2020. In an interaction with BusinessLine then, Nandan Reddy, co-founder of Swiggy, had said its Bengaluru and Hyderabad markets were profitable.
Asked if the 2020 targets had been further reset, Swiggy declined to comment.
Doubling the orders
“Now that Swiggy’s top deck leadership is in place and its kitty is full with the recent funding of $210 million, it is on track to double its orders to touch 1 million deliveries a day and 30 million orders a month in two years. In fact, the start-up was ahead of its target in the April/May/June quarter” said sources, who said Swiggy’s deliveries per month stand at 14 million as of June. Rival Zomato claimed that it touched 13 million orders in June.
Swiggy has expanded its operations from 8 cities two years ago to 15 cities today, has ramped up its restaurant partner network to over 35,000 restaurants up from 5,000 two years ago and works with over 55,000 delivery executives, up from 6,000 delivery executives, two years ago.
The start-up started sending out customised emails called ‘Scoop’ every month after Diwali which tells you how many restaurants in your locality can deliver to you, which restaurant received the most orders, average order time in your area, which restaurant received the most orders for what in your area and so on.
Market growth
The online food delivery market grew 150 per cent to $300 million in GMV in 2016, more than doubled to $700 million in 2017 and will continue on this momentum to hit $1.5 billion in GMV by the end of 2018 and $2.5 - $3.5 billion by 2021, as per RedSeer Consulting estimates.
“Growth in the food-tech industry is driven primarily by the increased acceptance of online food delivery service from early adopters to a much broader customer base. As industry leaders are flush with funds, we see a very aggressive fight for market share through discounts and advertisement. For delivering these orders we see much higher delivery incentives for delivery boys. As a consequence, we expect high cash-burn to continue in this industry as players fight for market share” observed Anil Kumar, CEO, RedSeer Consulting.
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