Instamart’s rise not from rivals’ pullback: Swiggy CEO

Swiggy’s quick commerce arm, Instamart, has strengthened its market position, according to founder and group chief executive Sriharsha Majety.

Swiggy, a food and grocery delivery company based in India, competes with players like Blinkit and Zepto in the quick commerce sector.

Majety said Instamart’s improvement was due to internal efforts rather than competitors reducing spending.

In Q2 2025, both Instamart and Blinkit gained market share, while Zepto saw slower user growth as it limited cash outflow.

Instamart has expanded its product categories for 10- to 15-minute deliveries and plans to launch its first festive season sale from September 19 to 28, 2025.

🔗 Source: The Economic Times

🧠 Food for thought

Implications, context, and why it matters.

Quick commerce forces traditional e-commerce to compete on new turf during festive season

Swiggy’s decision to hold its first-ever festive season sale between September 19-28 represents a direct challenge to traditional e-commerce giants like Amazon and Flipkart, who have long dominated this lucrative period1.
The expansion beyond groceries into electronics, fashion, and lifestyle products through 10-15 minute deliveries puts quick commerce platforms in direct competition with traditional e-commerce during India’s peak shopping season2.
Traditional e-commerce players are responding by enhancing their logistics capabilities and launching quick commerce arms. Flipkart introduced “Minutes” as its quick commerce service to compete in this space2.
This shift demonstrates how consumer expectations for speed and convenience are fundamentally reshaping festive season retail strategies, forcing established players to adapt their decades-old playbook.

Quick commerce sector transitions from expansion to profitability focus

Swiggy’s slowdown in dark store additions—from 316 stores in the previous quarter to just 41 in April-June—signals the industry’s shift from aggressive expansion to controlled growth1.
The company’s doubled losses to Rs 1,197 crore in April-June, despite saying it’s “past the expansionary phase,” highlights the financial pressures forcing quick commerce players to prioritize unit economics over market share1.
This transition reflects a broader maturation in the sector, where companies are now focusing on leveraging existing infrastructure and product diversification rather than pure scale to drive growth.
The emphasis on understanding the consumer and curated festive assortments, rather than just adding more stores, shows how the competitive advantage is shifting toward operational excellence and customer experience1.