Swiggy, a formidable competitor to Zomato, has recently announced the integration of its premium grocery service, InsanelyGood, into its quick commerce vertical, Instamart. This strategic merger follows InsanelyGood’s transition from a standalone app to an integral part of Swiggy’s main platform last July, where it secured its own dedicated space among Swiggy’s array of services.

The decision to consolidate operations aims at optimizing efficiency and reducing expenditure. InsanelyGood has strategically downscaled its operations from six cities to solely Bengaluru, a move designed to rein in costs effectively. Originally known as SuprDaily and rebranded as InsanelyGood in March last year, the service became fully integrated into Swiggy’s ecosystem by 2021 following Swiggy’s acquisition of SuprDaily in 2018. This consolidation marked Swiggy’s entry into direct competition with established grocery delivery platforms like BigBasket’s BB Daily and Amazon Fresh.

InsanelyGood earned acclaim for its premium grocery offerings, boasting a diverse range of high-quality products that resonated well with consumers. The amalgamation of InsanelyGood into Instamart represents a strategic maneuver to capitalize on the burgeoning quick commerce sector. Phani Kishan, co-founder of Swiggy and former co-founder of SuprDaily, assumed leadership of Instamart last year, further aligning the two services.

This integration is poised to enrich Instamart’s offerings by incorporating premium groceries, thereby catering to a discerning consumer base. Swiggy aims to expand this service throughout Bengaluru, tapping into the existing consumer affinity for InsanelyGood’s top-tier grocery selection.

This development underscores a broader industry trend wherein quick commerce firms diversify their product portfolios, venturing into new sectors such as apparel and electronics. Swiggy itself has been exploring various product categories through its Swiggy Mall segment. The merger coincides with Swiggy’s preparations for its impending IPO, with plans underway to file draft papers in the coming months.