One of India's leading food ordering and delivery startup tripled the reward redemption and increased rewarding by 5X using Xoxoday
Swiggy is the largest food ordering and delivery platform in India. They started their operations in 2014, at Bengaluru. Since then, they have snowballed to expand into a wide network of delivery partners across India. Over the years, Swiggy’s delivery network and ordering technology has transformed food ordering and delivery landscape - making it extraordinarily accessible and reliable.
Managing and onboarding a manpower of over 120000 delivery partners onto a platform comes with its unique set of challenges. Making sure the organisational values and strategic priorities trickle down to each of them and evaluating the efficiency of this was a herculean task. Before Xoxoday Compass, Swiggy was trying to manage this using dispersed and regional partner programs that were run by local management teams. Initiatives were rendered inefficient because the time taken to dissipate was ineffectively high. This tedious management of the reward programs also resulted in huge operating overheads.
The other aspect to this challenge was that the delivery partners did not work out of offices but out of their delivery vehicles. They were dispersed across locations and geographies and this also limited control on their performances. This made it extremely difficult to unify and implement the initiatives and to track their activities.
Swiggy chose Xoxoday Compass from an option of 4 others, and the following were the key reasons for this decision:
Compass allowed Swiggy to robustly design their partner programs. The team was open to discussing the requirements in detail and providing insights on how to efficiently integrate these programs using Compass.
Compass provided detailed data reporting and analytics tools. These data tools were key for the efficient use of the system because of the vastness of the data that 1.2 lakhs users would generate. These data points were to be used as key metrics for the delivery partner performance and efficiency.
Managing support for over 1.2 lakhs users was vital and impacted adoption directly. Xoxoday promised customer support despite this large volume.
‘Xoxoday has given us a platform to truly appreciate the hard work of our delivery partners who are the heart of our operations.’
Sachin Kotangale, VP Operations, Swiggy
Getting the delivery partners from across the country on-boarded on the platform was the first part of this challenge. The rewards automation interfaced with Swiggy’s operations, allowing points to be rewarded at each milestone achieved by the delivery partners. This instilled interest and led them to start using the Xoxoday Compass to evaluate their achievements.
The second part of the challenge was to get the delivery partner logged on to this platform. To solve this, operations heads used Compass’ Feeds & Announcements feature on the platform to disseminate the details of the reward program planned for the delivery partners. This way, each and every delivery partner was updated on the most recent rewards scheme and initiatives, instantaneously, with zero operational overheads.
Another reason for this extraordinary adoption rate was that the existing privileges were integrated onto the platform. Compass was incorporated as the unified platform to avail privileges like Insurance, doctor on call, educational scholarship and personal loan facility.
The Swiggy rewards are designed around the attendance, shift completion and delivery times of the delivery partners. The percentage of rewarded partners represents their achievements in terms of these business metrics. The rewarding percentage increased from 14% in July 2018 to 86% by January 2019. The rewards directly represented the achievement of business metrics.
Redemption is an important metric from the engagement perspective for the operations managers at Swiggy. Redemption is currently 70% of rewards from 26% in July 2018 (out of 86% rewarded). The managers use this value to indirectly indicate engagement. They have postulated that the redemption value indicates the number of partners who are actively engaged and who revel in the results of their achievements. This in turn , represents a stark increase of 44% in engagement scores of the delivery partners, post implementation.
The operational benefits of this implementation were two folded. First is the cost savings involved in implementing incentive and benefit programs across 120 locations, and second is the incremental operational efficiencies achieved due to the regularised attendance and efficient delivery times.
Seamless and robust implementation across these 1.20 lakhs of partners has been a stark achievement. This implementation has resulted in Compass becoming the center stone in driving growth and productivity at Swiggy.