Are you hungry? Even if you aren’t, there are 100 startups out there wishing you were. The me-too startup syndrome in India has taken the innovation out of the equation and the pursuit has become something else. Chasing other startups. This is why at TechUntold we do a host of comparisons of startups to compare and contrast their worthiness.
The food tech scene in India has had the most competition with over 10 to 15 startups every month cropping up in different areas trying to differentiate themselves with various niches like nutrition, gourmet etc. For the sake of this article, we compare two food delivery startups. Swiggy and Foodpanda.
What sets Swiggy and Foodpanda apart?
Foodpanda is the Rocket Internet backed food delivery startup that was the first few Indian startups in this space. Swiggy is in the same space and was founded in 2014, two years after Foodpanda. How do these two compare?
I am a bit surprised the amount of restaurants that Foodpanda has on offer. I’m a self confessed Swiggy fan, and I’ve seen the options Foodpanda has and it isn’t much. But now, I’m pleasantly surprised that Foodpanda have all the restaurants that Swiggy has on offer.
The one glaring problem I directly see with Foodpanda is the delivery time. It’s ridiculous to wait for 70 minutes. I know it’s the worst-case scenario. But having to wait on average for more than 35 to 40 minutes is not a possible option when my house is literally 2 or 3 kilometers away from most of these restaurants.
Foodpanda’s deals section is nice. Which has flat offers. These aren’t some restaurants that nobody orders from. These restaurants are the ones I order from regularly and these deals are great.
One cool option I noticed in the settings section is the option to switch off the load images option. I think this is pretty cool because of two reasons. If your data is slow and you are getting frustrated, you don’t need to see the pictures, all you want to do is order. With this the options load faster. There are close to 70 restaurants and you don’t always want to see their logos. You eat up on your data unnecessarily and you can cut down on this.
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As a regular Swiggy customer I know that most of the restaurants are available. The “What’s New” section is actually important because I can get to know all the new restaurants in my area and the restaurants that are recently added. This option is great for discovery. The “Trending” option is totally useless because it just lists all the restaurants in my area that I already know of. The Paytm offer is pretty interesting and they also have an Invite offer, where you get a 100 Rs voucher if you invite a friend to the application.
Swiggy’s filter option is nothing to boast about. You can filter based on cuisine and budget. Although you don’t know how cheap the most inexpensive restaurant is and how expensive the highest restaurant is. The delivery time is not really a filter people use because most of them know the kind of food they are ordering and the time that’ll take. And Swiggy’s service is so good that most of the deliveries happen in 30 minutes.
The below Swiggy app screenshot is to show, how consistent their deliveries are. Every order is expected to be delivered within 45 minutes and it does. 45 minutes is a bit much for Swiggy because it’s done in 30 minutes.
Swiggy’s offers section is a joke because there are no offers almost at any point of time and they need to improve this. But the most important feature that Swiggy needs is a point based discount system for repeat customers. Some customer order around ten times a month with Swiggy and if they are given discounts then they would be even more regular and consistent.
If I want deals then I would choose Foodpanda and if I wanted consistency in service in terms of time and delivery I would choose Swiggy.
What would happen in the food delivery space?
Deepinder Goyal(Zomato’s Founder) in a mail sent to his employees just a few days back mentioned that Zomato would never enter in the last mile in food delivery. What he meant was, Zomato will not build a team of delivery persons to service the customer because he believed that the unit-economics does not make sense. This means there is no money in this business according to him.
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What do you think? Do you think there’s money in the food pick up and drop business? Let us know!