Swiggy’s quick commerce division, Instamart, expects revenue contribution from non-grocery items to account for 30-35% of total sales, as consumer demand in India’s high-growth market shifts beyond daily essentials. While some competitors like Zepto have reportedly predicted a 50-50 split between grocery and non-grocery, Swiggy CFO Rahul Bothra said high-frequency grocery categories would remain the core of quick commerce.
While high-frequency categories such as fruits, vegetables, and FMCG products are expected to continue driving repeat transactions, the company has begun experimenting with a “megastore” model, which is designed to support a broader selection, including household goods, kitchen appliances, and stationery. The format, currently piloted in select locations in Bengaluru, features larger dark stores each spanning 8,000 to 10,000 square feet, and expands the site’s SKU count to over 30,000. “We’re experimenting with a format where we can increase the selection without hampering the customer experience,” Bothra said. “Think of it like a single megastore attached to a network of dark stores, where consumers within a 2-km radius get access to both 10-minute and 20-minute options.”
According to Bothra, frequently ordered items will still arrive within 10 minutes for all customers, while lower-demand products may be available with more variety in a slightly longer timeframe for users away from the megastores. “For instance, you may get your white bed sheet in 10 minutes, but if you want a selection of 15 bed sheet colours to choose from, maybe you as a consumer are okay to get it in 20 minutes,” he added.
Bothra highlighted that consumers’ evolving preferences are reshaping what they expect from quick commerce. “We’re seeing consumer imagination really drive what could potentially be made available in 10 minutes,” Bothra said, citing a recent uptick in searches for items like bed sheets on Instamart. “A year ago, none of us would have imagined that consumers would be searching for a bed sheet in quick commerce, but that’s where consumer behaviour is leading us.” However, Bothra said that there will be “limits to which categories get attached to the quick commerce model,” noting that larger appliances like refrigerators, and washing machines are unlikely to fit within the quick commerce offering.
On the pricing front, Bothra emphasised that quick commerce in India is driven more by convenience and assortment than by discounts. “Consumers aren’t looking for heavy discounts in quick commerce. Instead, they are looking at assortment and speed. Today, 10-12 minute delivery is almost a right to exist rather than a differentiator,” he added. However, the company will continue to be predictably priced on known-value items, like milk and eggs, which consumers are more familiar with, he added.
He added that pricing in quick commerce, particularly for FMCG items, is more complex compared to food delivery, where discounts often play a bigger role. “In food delivery, whether a burger or pizza sells at 60 or 80% of the original price, the supply side does not care, as they get the full value,” he said. “But in FMCG, brands care a lot because of market operating prices and channel conflicts. You don’t want offline channels to start buying from quick commerce. We’ve seen competitors already get strict notices from FMCG brands when they discount too heavily.”
From: financialexpress
Financial News
