Food delivery platform Swiggy has rebranded its q-comm (quick commerce) arm as Instamart, dropping the name of the parent entity, as it aims to form a standalone brand identity for the platform. This comes at a time when the rate of growth of quick commerce has been outpacing that of food delivery for the past few quarters.
“Instamart’s promise has grown beyond grocery categories, tier-1 cities and food delivery users,” said Mayur Hola, Head of Brand at Swiggy.
Earlier this year, Swiggy also launched a separate app for Instamart, simultaneously integrating it with Swiggy’s main app.
Under the rebranding, Instamart has also unveiled a fresh logo, which contains the Swiggy “S-Pin” icon as a “subtle tribute to the brand’s origins”.
Swiggy’s rival Zomato also renamed itself to Eternal with q-comm becoming a significant driver of growth.
While the main food delivery business has continued to remain the cash cow for both Swiggy and Eternal, its pace of growth has slowed down under 20% in the past few quarters as customers increasingly prefer quicker alternatives.
Both the companies have said that they expect their q-comm arms to surpass the food delivery business in both scale and reach.
Moreover, to stay ahead of the curve and benefit from rising demand, they have expanded their network of dark stores (mini warehouses), aggressively to reach more locations, even if it meant taking a hit on the overall profitability.
Instamart has, however, adopted a slightly different approach from Blinkit. It has opened larger dark stores called megapods to improve assortment and reduce the need of opening smaller dark stores. It has also launched Maxxsaver offering discounts on bulk orders, to improve the average order value.
Swiggy said the new identity will roll out across the app, packaging, delivery bags, communication, and campaigns over the coming weeks.
Moreover, Swiggy on Tuesday also launched its Corporate Rewards Program across 7,000 companies in the country to offer their employees an access to a range of offers by verifying their official work email addresses on the main app. By the end of 2045, Swiggy aims to partner with over 15,000 organizations.