Curios case of creating Party Food Delivery Feature in an app: PartyGo
Food aggregator apps are flooded in the market. Zomato and Swiggy are having most of the market share. We wanted to explore this area and come up with the feature for imaginary food delivery app Foody !!! , where we wanted to try out 2 differentiator features. First being Party order delivery and order foods from multiple restaurants at one go.
We did Following approach.
○ Understanding the market
○ User research
○ MVP Creation
○ Sketching
○ Wireframing & Prototyping
○ Creating an App
Let us take a look at each part one by one.
Part 1: Understanding the market
Target market Identification
• Assume Indian population at 1.3 billion
• The population divide (urban: rural) is assumed to be 30:70
oThe Indian urban population is (urban proportion × Indian population) = 0.3 × 1.3 billion = 0.39 billion
• Major metros (Delhi, Mumbai, Kolkata and Chennai) comprise approximately 20% of the total Indian urban population
o The urban population in the major metro cities is (0.2 × Indian urban population) = 0.2 × 0.39 billion, which is 78 million
• With Mumbai assumed to host 25% of the significant metro urban population,
o The Indian urban population residing in Mumbai is computed as (Urban population in major metro cities × 0.25) = 78 million × 0.25, approximated to be 19 million — TAM
TAM or Total Available Market is the total market demand for a product or service
- Assuming Upper Middle Class + Rich consists of 40 % of the total population using Food Delivery apps: 0.40*19mn = 7.6 mn — SAM
SAM or Serviceable Available Market is the TAM segment targeted by your products and services within your geographical reach.
Porter’s Five Forces Analysis
The threat of New Entrants is high since almost no experience is required to venture. Venturing into the industry is almost a low expense R&D fair. The customers might show their loyalty based on the experience and the quality delivered.
The threat of substitutes is high since sustainability in the industry depends on the existing competitors, which currently seem to be high hence winning the customer confidence and loyalty gaining are huge tasks. Buyers' bargaining power is high because the supplier market is huge, which means the negotiations are advantageous for us. We identify the quality resources.
Competitors and Rivalries exist in the market. Since there are high-level players in the market already, we may have to strategize our pricing and attract customers.
We might have to prioritise marketing and advertising to deploy ourselves as alternatives to the existing options.
A few acquisitions happened, which means the brands that could not sustain or win customers have lost to their heavy competition.
Competitor Analysis
The online food delivery industry is growing in leaps and bounds as it offers a wide variety of benefits to all the three participants: customers, restaurants and platforms. Although the service has opened a large gateway of opportunities for the start-ups, the online food delivery market has a competitive landscape. Therefore, several measures must be taken care of before stepping into the competing business market.
Direct Competitors
- Zomato: Founded in 2008, with an estimated revenue of $206M
- Swiggy: Founded in 2014, with an estimated revenue of $120M
Indirect Competitors
•FreshMenu: app-based food-tech company in 2014 with estimated revenue of $20.3 M
•Eat. Fit: Started in 2016, healthy food delivery app largely based on subscriptions. Estimated revenue of $59.5M.
Company Background Zomato Vs Swiggy
Business Model — Zomato vs Swiggy
Product Review and performances — Zomato Vs Swiggy
Strengths and Weakness of Zomato and Swiggy
Pain points of Zomato and Swiggy
Future Initiatives of Zomato and Swiggy
Part 2: Objectives and Hypotheses
Objective
- To understand user pattern for online food delivery.
- To understand what kind of features user interested in
Hypothesis
- Customer wants to Order from multiple restaurants in a single order.
- Customer willing to Pre-order for tomorrow (or before the restaurant opens)
- Customers are willing to try ordering food in a new app.
- Users are interested in placing bulk orders for small parties.
- If the app language can be changed, rural area people might also order from the app.
- Customers expect better discounts or offers or coupons from other existing apps.
- Easy refunds if food is wrongly delivered
- Acceptance of virtual payment methods like Sodexo, ticket restaurant
Surveys
We reached out to people via telegram, Emails and Posting the survey on Food groups on Facebook.
Next steps were to analyse the survey results against the Hypothesis the team had made, which is tabulated below.
User Interview Insights
As we looked at how to improve Food Delivery experience, We decided to do user interviews via Zoom calls to get end-user feedback. Following were the Interview insights.
- 70% of people stay alone and cannot cook.
2. 60% of the people order food regularly — weekly once.
3. All 100% prefer digital payment, — 70% prefer payment wallets, and 30% prefer net banking.
4. 80% of the interviewees favoured quality food and discount for faster delivery.
5. 75% told the existing packing of food is ok. 10% wanted eco-friendly packing, and 15% wanted a better package to avoid leakage.
6. 85% of people wanted the food recommendation to be improved.
7. 45% wanted the food cancellation policies to be improved and customer friendly.
Sketch
Wireframing and Prototyping
It was a great learning experience to brainstorm and create an app idea during Covid times.
With many restaurants getting on Food delivery platform and setting up cloud kitchens, we think ordering from multiple restaurants at one go will be an interesting feature to try out. Based on analytics app can reach out to food vendors to set up cloud kitchen based on demand. It’s going to be a win-win proposition for consumer, food delivery app and the restaurants.
