Swiggy & Zomato - Idle Capacity Analysis
If we consider the ideal time of delivery to be an even 30 minutes and another 30 minutes of switching orders (on the higher side), it comes to 1 order per hour or 8-10 orders per day as full capacity. (This is without considering multiple pickups and multiple deliveries at a time which could take the daily numbers to 15-20 orders a day).
This idle capacity arises due to the inherent nature of the business that demands having a well spread workforce that covers maximum corners of the city. To add to that is the rapid geographical expansion drive by both the unicorns with a present penetration of 500+ cities in India (for both).
The primary objective thus far has been to create a sense of omnipresence of the brand which gives the users unmatched convenience of use and slowly feeds into their subconscious that ordering-in is definitely the new way of life.
This article is a part of the July'20 edition of our Startup Newsletter. Here's the complete publication: