Swiggy Food Delivery: Product Levers to Grow Basket Size by 15 Percent

You are a product manager at Swiggy, the Indian food delivery and quick-commerce app, and you have been asked to raise average order value (AOV) by 15%. How would you do it? Explain how you would find out what drives AOV today, which product levers you would use, how you would prioritize them, and how you would confirm that the increase is real and good for the business. ```hint Split the ratio AOV is total order value divided by the number of orders, so it can rise because baskets get bigger or because the mix of orders changes. Break it into its parts and look at the data before you propose features. ``` ### Clarifying Questions - Does the target cover only restaurant delivery, or also Instamart grocery orders and Swiggy's other services? - Is AOV measured on the value of the items, or does it include delivery and platform fees, taxes and discounts? - By when should the 15% be reached, and does it apply to all users and cities or to a chosen segment? - Is the underlying aim higher revenue per order, better delivery economics or more total spend, and is a drop in order frequency acceptable? ### What a Strong Answer Covers - A clear definition of AOV and a breakdown into items per order, price per item and order mix that shows where 15% could come from - A diagnosis of current baskets by segment and occasion (solo versus group orders, cuisine, time of day, city, members versus non-members) before choosing levers - Levers that fit food delivery, such as checkout add-ons, combos and upgrades, threshold offers, group ordering and premium restaurant discovery, prioritized by impact and effort - A rough sizing that shows whether the chosen levers can add up to 15% - Guardrails that separate a healthy increase from one driven by fees, discounts or lost small orders: order frequency, total spend per user, conversion, discount cost and delivery times ### Follow-up Questions - AOV reaches the 15% target, but orders per user fall. Is that a win, and how would you decide? - How would you test a minimum-basket offer, and what result would make you stop it? - How would your plan differ for Instamart, where baskets are built from many low-priced items?