Swiggy Super: Subscription programs
Disclaimer: I originally wrote this Twitter thread some time in May when Swiggy had paused their Super program. They have reintroduced it now. I wrote this thread mostly as a Swiggy power user and not from the POV of a PM. Hence instead of worrying about impact of the decision to pause Super on revenue, I wrote about the change in my own food ordering pattern.
/threadstarts
Subscription programs are a great way to increase switching cost
I never used to open Zomato till I had Swiggy Super
Now every time I think of ordering, I open both Zomato and Swiggy, and compare prices Upside-down face
My JTBD today was to get kung pao chicken
I realized if I have to pay 100 bucks (tax + delivery) on Swiggy, then I might very well see restaurants from Zomato who deliver the same item
As long as the rating is good, I don’t care
This is coming from someone who loves Swiggy, both the company and the app
And I was one of those users who ordered >5X/ week pre covid
Tells you how powerful their Swiggy Super was
With a delivery fee, you have to make those mental calculations which you never did before
Like do I really want to pay 100 bucks extra for this 200 cart value order?
Wow. It is 50%
Maybe I can just eat the dinner my cook has made. I never used to do these calculations before
This was my standard order every night ->
If you think about it, apart from the free delivery fee, the discount was not that great. But I still ordered. Almost every night
Without the delivery fee, the calculation was: they add taxes/extra charges, but swiggyit coupon nullifies that. So I am paying almost the true value
Now I am making the decision based on how much extra charge (with delivery fee) is fair
Is it 50%? Is it 30%? Who knows
I am sure a lot of users are churning at the cart page
Maybe they could still have run Swiggy Super but removed the discounts
I don’t have data based on what the decision was made. But I wonder how many orders they are losing out because users don’t want to pay extra for delivery fee when they had already paid for Swiggy Super
/end