Food delivery giant Swiggy, on the verge of an IPO, has decided to integrate its upscale grocery division, InsanelyGood, with its quick commerce branch, Instamart, according to ET sources. The company announced, “InsanelyGood operations will pause temporarily, with plans to relaunch soon at an Instamart store near you.”
In a move to streamline services, InsanelyGood was absorbed into the Swiggy app last July, positioned alongside other services like Instamart, Dineout, Genie, and Minis, each with its dedicated spot on the app’s homepage. However, InsanelyGood has scaled back, retracting from six cities to only serve Bengaluru, in efforts to reduce expenses.
Swiggy’s acquisition of SuprDaily in 2018, and its integration in 2021, placed the company in competition with major players like BigBasket’s BB Daily, Amazon Fresh, and Reliance’s Milkbasket. Swiggy, founded in 2014 by Sriharsha Majety, Nandan Reddy, Phani Kishan Addepalli, and Rahul Jaimini (who exited in 2020), began as a food delivery service but expanded into quick commerce with Swiggy Instamart during the pandemic, in addition to launching Swiggy Genie and the Minis store.
What Happened to Supr Daily
In May 2022, Swiggy made the tough decision to discontinue Supr Daily. The closure of this micro-delivery vertical was primarily due to significant financial losses. Despite being a subscription-based service, Supr Daily struggled to achieve financial sustainability, leading Swiggy to halt its operations in five major Indian cities: Delhi-NCR, Mumbai, Pune, Hyderabad, and Chennai. The shutdown underscored the challenges of maintaining profitability in the highly competitive delivery market.
Phani Kishan, originally a co-founder of SuprDaily and later a Swiggy co-founder, took over leadership of Swiggy Instamart last year. This move occurs as quick commerce firms, including Instamart and Zepto, explore new product categories like apparel and electronics, challenging established e-commerce companies. Swiggy has also ventured into new territories with Swiggy Mall, offering a range of products including home and kitchen items, electronics, and toys.
