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Is Swiggy giving up on its differentiated quick commerce strategy?

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Pranav Balakrishnan

37 reads
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Pranav Balakrishnan

37 reads

After killing its premium grocery delivery app InsanelyGood and adding the offering to its core app, Swiggy is now set to integrate InsanelyGood into its quick commerce platform Instamart. Will other pilots like Mall also be swallowed up by Instamart?

March 13, 2024

10 MINS READ

Key Takeaways

  • Unlike rivals Zepto and Blinkit, ​​Swiggy has attempted to create separate entry points for its various e-commerce businesses
  • Now, however, it appears to be going back on this strategy and is integrating its premium grocery service InsanelyGood with its quick commerce business Instamart
  • Sources tell The CapTable that Swiggy Mall could be integrated with Instamart as well, though the company has yet to take a final call on this
  • While Swiggy hoped that each of these offerings would be used by different customers, it appears there’s a significant overlap between users across its various offerings

Quick commerce has come a long way from its origins around the turn of the decade. Where platforms like Swiggy, Zepto, and Blinkit once offered an extremely limited range of groceries to facilitate 10-minute deliveries, they now offer everything from apparel and gifts to cosmetics and utensils. 

This expansion is in line with their evolving ambitions—they are no longer content with rivalling the neighbourhood kirana store. Instead, they want to take on full-fledged e-commerce platforms like Amazon or Flipkart. Their success has been significant enough to force Flipkart to finally wade into the quick commerce game and forced Tata-owned Bigbasket to trade in its next-day delivery model for a quick commerce approach.

For Zepto and Blinkit, this expansion has been straightforward. The two platforms are deepening their links with brands to expand their catalogue of products. Swiggy, on the other hand, has taken the road less travelled.

The second biggest quick commerce player after Blinkit, Swiggy hasn’t simply expanded the range of products on its quick commerce platform Instamart. Instead, Swiggy has piloted separate verticals such as premium grocery platform InsanelyGood, hyperlocal marketplace Minis, and a broader e-commerce marketplace Malls as it sought to avoid diluting its core quick commerce offering.

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