Swiggy Merges InsanelyGood with Instamart, Streamlines Grocery Delivery Services

Preeti Bali / 8:53 am / March 15, 2024

Swiggy, a leading food and fast-delivery company, has announced the merging of its premium grocery service, InsanelyGood, with its established quick commerce platform, Instamart. This move aims to streamline operations and enhance their grocery delivery offerings.

A user notification from Swiggy informed customers of the temporary pause in InsanelyGood operations. However, the notification assured users of the service’s return through Instamart locations shortly.

InstaMart Pauses Operations for Integration

Currently, InsanelyGood operates solely in Bangalore, having downsized from its presence in six cities last year as part of a cost-reduction strategy. The service offered next-day delivery for orders placed before 11 pm.

Previously, InsanelyGood functioned as a standalone app before integrating into the main Swiggy app in July 2023. Within the app, it occupied a dedicated space alongside other Swiggy services like Instamart, restaurant booking (Dineout), delivery services (Genie), and the aggregated shopping platform (Minis).

Evolution of InsanelyGood

InsanelyGood, formerly known as SuprDaily, underwent a rebranding in March 2023. SuprDaily was acquired by Swiggy (backed by Prosus) in 2018 and subsequently integrated into the company’s operations in 2021. This acquisition positioned Swiggy in direct competition with established grocery delivery services like Tata-owned BigBasket’s BB Daily, Amazon Fresh, and Reliance Retail’s Milkbasket.

A Swiggy spokesperson clarified the company’s vision for InsanelyGood, highlighting its focus on a high-quality grocery assortment and the positive customer reception it has received. Leveraging this positive sentiment, Swiggy plans to reintroduce the service as a distinct section within the Swiggy Instamart platform, expanding its reach across Bangalore.

Leadership Shifts and Industry Trends

The merger coincides with a period of diversification and expansion within the quick commerce sector. Companies like Instamart, Zepto, and Blinkit are actively broadening their offerings, venturing beyond groceries to include products like apparel and electronics. This trend challenges traditional e-commerce companies. In response, Swiggy has been experimenting with similar diversification through its “Swiggy Mall” vertical, offering products in categories like homeware, electronics, and toys for several months.

Cost-Cutting Measures and Upcoming IPO of Swiggy

In January 2024, Swiggy implemented a workforce reduction of approximately 6% (350-400 roles) as part of a cost-cutting initiative. Despite this measure, Swiggy remains on track to file its draft Initial Public Offering (IPO) papers in the coming months.

The merger of InsanelyGood with Instamart signifies Swiggy’s strategic approach to optimizing its grocery delivery services and fortifying its position within the evolving e-commerce landscape.

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