As new companies which leverage smartphones to provide innovative services are becoming more and more common, there is a need to understand what leads to the adoption of these services. Diffusion of Innovation (DOI) Theory proposed by Everett M Rogers provides a framework to understand various factors involved in the diffusion of innovations. In this study, we analyse the diffusion of new service innovations by looking at two services, PayTM and Swiggy. The study focused on postgraduate students of IIT Bombay who would fit into the user category of innovators and early adopters, as defined by DOI theory. We conducted interviews with the students to understand their experience with PayTM and Swiggy and identified important factors that led to the adoption of these service innovations. This data was mapped to the variables that affect the rate of adoption of innovations, as defined by DOI theory. The study finds that some variables have more importance in the diffusion of the two service innovations considered among students of IIT Bombay. The study suggests that the DOI framework still holds as a good framework to understand the diffusion of innovations, but it has to be modified to incorporate factors as demanded by the context.