Swiggy Merges InsanelyGood with Instamart to Strengthen Quick Commerce Vertical

• ByStartupStory     |    March 15, 2024

In a strategic move aimed at consolidating its presence in the quick commerce space, leading food delivery platform Swiggy has announced the merger of its premium grocery vertical, InsanelyGood, with its quick commerce vertical, Instamart.

According to a notification sent out to its users, Swiggy stated, “We will have to pause InsanelyGood operations for some time. We will be available at an Instamart store near you super soon.”

The decision comes as part of Swiggy’s efforts to streamline operations and focus resources on enhancing its quick commerce offerings. InsanelyGood, which was integrated into the Swiggy app last year, operated as a separate title on the app’s home page alongside other services like Instamart, Dineout, Genie, and Minis.

Having scaled down its operations from six cities to solely operating in Bengaluru, InsanelyGood had previously rebranded Swiggy’s subscription-based grocery delivery service, SuprDaily. The move positioned Swiggy in direct competition with established players such as BigBasket’s BB Daily, Amazon Fresh, and Milkbasket.

Swiggy’s decision to merge InsanelyGood with Instamart follows recent cost-saving measures, including a reduction in workforce by 6%, affecting around 400 roles.

Commenting on the merger, an unnamed spokesperson from Swiggy remarked, “This strategic consolidation allows us to focus our efforts and resources on delivering exceptional quick commerce experiences to our customers. We are committed to providing unparalleled convenience and quality through Instamart.”

Swiggy has been undergoing notable changes in its leadership and corporate structure. In December last year, Anand Kripalu, former Managing Director and Global CEO of Essel Propack Ltd., was appointed as an independent director and chairperson of Swiggy’s board of directors.

The company’s financials reflect a steady growth trajectory, with operating revenue increasing to ₹8,264.4 crore from ₹5,704.9 crore in FY22. However, Swiggy reported a net loss of ₹4,179.3 crore in FY23, up from ₹3,628.9 crore in the previous financial year.

Follow Startup Story