In a bold move to cater to the evolving demands of consumers, Swiggy has announced that it will launch its quick commerce service, Instamart, as a separate app. The decision marks a significant shift in the company’s strategy, reflecting a growing focus on multi-app solutions in line with quick commerce trends. Swiggy’s CEO and co-founder Sriharsha Majety revealed this development in an exclusive interview with Moneycontrol on January 9, 2025.
This strategy of splitting different services into distinct apps is not entirely new. Swiggy, which began with its all-in-one app for food delivery, is now embracing a more segmented approach, similar to that of leading Chinese giants like Meituan and Alibaba, both of which successfully operate multiple apps under one umbrella. In this article, we will explore Swiggy’s new direction, its potential impact on the quick commerce sector, and how this move aligns with global market trends.
Swiggy’s Shift to a Multi-App Strategy
Swiggy has long been known for its integrated services, which include food delivery, grocery services, and other local needs. However, the company is now ready to launch a new phase in its business model by making Instamart a standalone app. But why is this such a big deal, and how does it align with customer preferences?
Here’s a breakdown of the key aspects of this move:
- Catering to Specific Customer Segments: With separate apps, Swiggy can offer tailored experiences to users who are primarily looking for groceries or quick commerce services. Users won’t have to wade through other offerings like food delivery if their needs are solely focused on grocery shopping.
- Growth of Quick Commerce: As Instamart continues to expand rapidly, it holds the potential to outgrow Swiggy’s food delivery service in terms of user base and market impact. According to Majety, quick commerce could soon surpass food delivery, making it crucial for Swiggy to establish a dedicated platform to maximise its reach and engagement.
- Global Inspiration: The strategy reflects the growing trend of multi-app ecosystems. Companies like Meituan and Alibaba have adopted similar models, successfully maintaining separate apps for different services while retaining an integrated ecosystem. For instance, Meituan offers food delivery, ride-hailing, and more through separate apps but benefits from cross-pollination.
This strategy isn’t entirely foreign to Swiggy either. The company previously experimented with this model through services like Supr Daily, Dineout, and Insanely Good, which operated as separate entities outside the main Swiggy app.
Instamart’s Growing Potential and the Separate App Decision
Instamart, Swiggy’s quick commerce platform, is growing at an exponential rate. As of now, Instamart is already available in 75 cities, and its offerings have expanded into new categories. This rapid growth has revealed a fundamental shift in how people consume goods. Quick commerce, or the ability to buy essentials in minutes, is becoming a dominant force in retail.
- Expanding Beyond Food Delivery: When Swiggy launched Instamart, it initially catered to groceries, but the platform has since expanded into a wide variety of product categories, ranging from home essentials to health products. This broad offering has allowed Instamart to attract a larger user base.
- Evolving Consumer Needs: In a world where speed is everything, consumers expect faster delivery times, wider choices, and seamless experiences. The shift to a dedicated app allows Swiggy to deliver a more focused and user-centric service, enhancing customer loyalty and retention.
- The Need for Flexibility: By introducing a separate Instamart app, Swiggy aims to offer a simplified, faster experience that directly addresses consumer needs. Instead of competing with food delivery, the app focuses solely on quick commerce, allowing users to shop for daily essentials with minimal friction.
As Majety points out, the company is “only 5-10% done” with its quick commerce journey, indicating that there is still significant potential for growth in the sector.
Rival Companies’ Strategies and the Competitive Landscape
Swiggy is not the only player in the quick commerce space looking to dominate with multiple apps. Zomato-owned Blinkit and Zepto, two of Swiggy’s closest competitors, have also launched separate apps for their new offerings. Blinkit introduced Bistro, a separate app focused on delivering restaurant meals, while Zepto rolled out Zepto Cafe, aiming to tap into the café-style food delivery market.
This trend of launching multiple apps is becoming increasingly common in the fast-evolving quick commerce market. However, there is still no clear consensus on whether this strategy will yield superior results in the long run.
- Zomato’s Multi-App Strategy: Zomato’s venture into multiple apps reflects its push into different verticals. The company aims to ensure that its users can easily find what they’re looking for, without overwhelming them with unnecessary options.
- Zepto’s Competitive Move: Zepto’s introduction of a café-specific app also highlights how brands are segmenting services to target specific niches, potentially leading to a more engaged customer base.
Despite the rush to segment services, experts are still divided on the long-term efficacy of this strategy. The key challenge lies in balancing user acquisition with cross-promotion opportunities.
What Does the Future Hold for Swiggy’s Multi-App Strategy?
Swiggy’s decision to introduce Instamart as a separate app comes at a time when the quick commerce industry is booming. With the potential to reach millions of users, quick commerce is projected to become a bigger market than food delivery in the near future. Swiggy’s approach aims to solidify its position in this space by offering a platform that caters to quick commerce demands while maintaining its food delivery dominance.
Here’s how Swiggy can capitalise on this shift:
- Cross-Promotion Across Platforms: Even though Instamart will be a standalone app, it will still coexist with the main Swiggy app. This dual strategy allows Swiggy to drive cross-pollination and increase customer engagement across different services.
- Niche Services: Swiggy is also planning to launch other new apps like Pyng, a platform that will offer curated professional services such as yoga classes and accounting. With these new ventures, Swiggy can target niche markets while expanding its portfolio.
- More Focused User Experience: By separating its services, Swiggy can offer a more focused, streamlined user experience, allowing customers to interact with only the services they need, when they need them.
As we look ahead, it’s clear that the future of quick commerce and multi-app ecosystems is bright. Swiggy’s approach may well set a new standard for how platforms adapt to shifting consumer behaviours and expectations.
Conclusion: Swiggy’s Bold Move Towards Multi-App Ecosystem
Swiggy’s decision to launch Instamart as a separate app is a major step forward in its journey to redefine quick commerce in India. As more consumers demand faster, more focused services, this multi-app strategy will allow Swiggy to stay ahead of the competition. By learning from global market leaders and adapting to customer preferences, Swiggy is positioning itself for even greater success in the years to come.
Relevant Links for Further Reading
- Swiggy Instamart
- Meituan Strategy
- Quick Commerce Growth
- Alibaba Multi-App Ecosystem
- Zomato Multi-App Strategy
Photo credit: Business Standard
