How to answer Estimation questions
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Assumptions:
Considering India as the market
Considering "Orders placed by a user" and not AOV or revenue as the output of this guesstimate
Formula:
No. of Swiggy Users in India X Order Frequency
Population of India: 1.4Bn
Smartphone penetration: 80% = 1.12 Bn
Internet penetration: 90% = 1.008Bn
People who prefer to order food online: 60% ~ 0.6Bn
There are various apps like Zomato, Lunch box, Hotel deliveries, etc however Zomato and Swiggy have the highest market share. Considering Swiggy's market share 40%
Swiggy users= 40% =0.24Bn=240Mn
Frequency of ordering
High:
Percentage: 10% = 24Mn
Frequency: (7 to 12 times a week)
Avg. Frequency: ~10/week
Medium:
Percentage: 30% = 72Mn
Frequency: (1 to 6 times a week)
Avg. Frequency: ~4/week
Low:
Percentage: 60% = 144Mn
Frequency: (1 to 4 times a month)
Avg. Frequency: ~1/week
Total orders received by Swiggy in one week
= (24Mn X 10) + (72Mn X 4) + (144Mn X 1)
= 672Mn/Week
Considering India as the market
Considering "Orders placed by a user" and not AOV or revenue as the output of this guesstimate
Formula:
No. of Swiggy Users in India X Order Frequency
Population of India: 1.4Bn
Smartphone penetration: 80% = 1.12 Bn
Internet penetration: 90% = 1.008Bn
People who prefer to order food online: 60% ~ 0.6Bn
There are various apps like Zomato, Lunch box, Hotel deliveries, etc however Zomato and Swiggy have the highest market share. Considering Swiggy's market share 40%
Swiggy users= 40% =0.24Bn=240Mn
Frequency of ordering
High:
Percentage: 10% = 24Mn
Frequency: (7 to 12 times a week)
Avg. Frequency: ~10/week
Medium:
Percentage: 30% = 72Mn
Frequency: (1 to 6 times a week)
Avg. Frequency: ~4/week
Low:
Percentage: 60% = 144Mn
Frequency: (1 to 4 times a month)
Avg. Frequency: ~1/week
Total orders received by Swiggy in one week
= (24Mn X 10) + (72Mn X 4) + (144Mn X 1)
= 672Mn/Week
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