Highlights
Swiggy is introducing a dedicated Instamart app in 76 cities across India.
- Amazon and Flipkart are entering India’s quick-commerce market to challenge players like Blinkit and Swiggy.
- Amazon Tez and Flipkart Minutes are expanding operations.
- Restaurants in India are protesting against Zomato and Swiggy’s 10-minute food delivery apps.
- The National Restaurant Association of India (NRAI) is considering legal action amidst concerns about data usage and customer migration to these apps’ private labels.
One of India’s top food and grocery delivery platforms Swiggy is introducing a dedicated app for its quick-commerce service Instamart. This new app is part of Swiggy’s strategy to create multiple apps that address specific customer needs. The standalone Instamart app will be rolled out in 76 cities across India.
According to the Economic Times report, Group CEO and co-founder of Swiggy Sriharsha Majety confirmed that while Instamart will still be available within the main Swiggy app, the standalone version is designed to offer users a more seamless and direct experience. The company is optimistic about Instamart’s potential predicting it could grow even bigger than its food delivery business.
In a statement, Swiggy MD and Group CEO Sriharsha Majety said, “While it’s been clear for a while now that Swiggy Instamart is set to match food delivery in size, recent developments show it’s on track to surpass food delivery in both penetration and scale. The positive reception in new cities and categories suggests Instamart could achieve far greater user adoption, going well beyond 100M+ users.”
This announcement comes shortly after Swiggy launched a 15-minute food delivery app named SNACC in Bengaluru. The company’s move mirrors strategies adopted by major Chinese platforms like Meituan and Alibaba, which have successfully balanced single-app functionality with standalone apps for specific services.
Majety also highlighted that the core Swiggy app would continue to benefit from features like its integrated membership program. However, the standalone Instamart app is expected to attract a significantly larger audience and expand Swiggy’s overall reach.
The new app is scheduled to launch in a few weeks, marking another step in Swiggy’s journey toward building a house of apps.
Amitesh Jha, CEO of Swiggy Instamart, commented on the growth trajectory: “Swiggy Instamart is on a rapid growth path, offering a compelling value proposition with 10-minute deliveries and an expanding range of nearly 50,000 products. The launch of the Instamart app ensures seamless adoption and access to the service in a category that we believe we have only scratched the surface of. Whether consumers access Instamart via Swiggy or the standalone app, all Swiggy One, One Lite, and One BLCK benefits will apply, ensuring that our ever-growing user base continues to enjoy the same great perks.”
Blinkit and Swiggy Brace for Competition from Amazon and Flipkart
India’s quick-commerce sector is only warming up as new players enter the market and intensifying competition among established giants. Blinkit and Swiggy, two of the biggest names in the space, are set to face stiff competition from American companies. Economic Times reports that Amazon and Walmart-owned Flipkart are gearing up for quick-commerce operations in 2025.
Amazon has started testing its quick-commerce service Tez in select areas of Bengaluru with its employees. This pilot program aims to deliver daily essentials quickly, using dark stores strategically located across the city and collaborating with third-party logistics providers. Confirming the pilot program, Amazon emphasised its focus on speed and innovation.
“We are always innovating to offer even more value to customers, and this limited pilot in select pin codes of Bengaluru is a trial to offer even faster speeds on a selection of everyday essentials from our sellers, that customers often need quickly,” a spokesperson said.
Meanwhile, Flipkart’s quick-commerce service, “Minutes,” is expanding rapidly. The platform is expected to operate around 150 dark stores this quarter and is diversifying its product range to include higher-value items like smartphones, laptops and medicines in specific areas of Bengaluru. A Jefferies report highlighted Flipkart’s competitive pricing and consistent availability of high-demand items like iPhones, setting it apart from rivals like Zepto, Blinkit and Swiggy Instamart.
The report also noted that Flipkart is increasing its dark store count, entering new markets like Kolkata, and adding more product categories. Experts believe Flipkart could emerge as a formidable player in the quick-commerce sector this year.
Other Indian companies are also stepping up their game. Tata-owned BigBasket has integrated Tata Cliq to offer 15-minute deliveries for fashion items, signalling a shift toward newer categories within quick commerce.
While industry growth projections for quick commerce have been revised, the entry of major players like Amazon and Flipkart is expected to challenge the profitability of existing businesses.
Restaurants Protest Against Swiggy and Zomato’s New 10 Minutes Delivery Apps
Meanwhile, restaurants across India are pushing back against Zomato and Swiggy’s standalone 10-minute food delivery apps, accusing them of creating unfair competition.
The National Restaurant Association of India (NRAI) plans to escalate the issue to the Competition Commission of India (CCI), claiming that these new apps such as Blinkit’s Bistro and Swiggy’s Snacc enable the companies to operate private labels, which could harm their restaurant partners.
In a statement to the Economic Times, NRAI president and Co-Founder and CEO of Wow Momo Sagar Daryani said, “We are absolutely not okay with Zomato and Swiggy engaging in private labelling and selling food directly via Blinkit’s Bistro app and Swiggy’s Snacc app for quick food delivery. They have access to all our data, which they do not share with us. For us, there is complete consumer masking. We have no reason to believe they are not migrating our customers to the products they sell as private labels on their apps, whether it’s data from a tea brand, biryani, or momo. We are seriously considering taking legal action.”
These platforms use apps like Bistro and Snacc to source food and beverages from third-party vendors, delivering them via quick-commerce dark stores. They also provide 15-minute delivery services by aggregating orders from restaurants.
According to the Economic Times, Swiggy’s Bolt model for rapid food delivery now accounts for over 5% of its total food orders.
“Quick commerce in food is here to stay, grow, and add more zing to the food delivery space. People want more convenience, and this will give an edge to restaurants that can adapt to it. We fully support it. However, as long as these aggregators work with restaurants and enable them to go quickly, we’re fine with it. But we cannot support a model where they sell similar products themselves, effectively competing with us. This has not been allowed for even larger e-commerce players operating under the marketplace model,” Daryani added.
The NRAI has also called on the government to grant industry status to the food services sector citing its potential to grow into a ₹7.76 lakh crore industry by 2028.
FAQs
Q1. What is Swiggy’s new strategy for Instamart?
Answer. Swiggy is introducing a dedicated Instamart app to provide a more seamless experience, rolling it out in 76 cities across India. While Instamart will still be available within the main Swiggy app, the standalone version is expected to offer users a more direct experience.
Q2. How does Swiggy view the potential of Instamart?
Answer. According to Swiggy MD and Group CEO Sriharsha Majety, Instamart could surpass food delivery in both penetration and scale, achieving far greater user adoption, potentially exceeding 100 million users.
Q3. What competition is Swiggy facing in the quick-commerce sector?
Answer. Swiggy and Blinkit are bracing for competition from Amazon and Flipkart. Amazon is testing its quick-commerce service Tez, while Flipkart’s quick-commerce service, “Minutes,” is expanding rapidly with plans to operate around 150 dark stores and diversify its product range.
Q4. What concerns do restaurants have about Swiggy and Zomato’s new 10-minute delivery apps?
Answer. Restaurants across India are protesting against Zomato and Swiggy’s 10-minute food delivery apps, accusing them of creating unfair competition through private labelling and using restaurant data without sharing it, leading to potential customer migration to the apps’ private labels.
Q5. What steps are being taken by the National Restaurant Association of India against delivery apps?
Answer. The NRAI is considering escalating the issue to the Competition Commission of India (CCI) and taking legal action, asserting that these new delivery apps by Zomato and Swiggy operate private labels, which could harm their restaurant partners.
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