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Swiggy Instamart starts 24×7 free delivery in Delhi NCR for festival season
Source: Business Standard
IPO-bound Swiggy’s quick commerce arm, Instamart, has launched an initiative offering 24×7 free delivery for all customers in Delhi NCR to capitalise on the anticipated uptick in demand during the festival season.
The quick commerce platform aims to meet growing demand by offering rapid delivery of thousands of products within 10-15 minutes, day and night, in Delhi, Gurgaon, and Noida, the company said.
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The company states it has observed that the demand for essentials not only continues but increases once the shutters go down in the late hours, especially during the bustling festive season filled with last-minute preparations.
According to Swiggy, during the festive season, particularly around celebratory occasions such as Diwali parties, customers order throughout the night.
Swiggy Instamart’s order analysis reveals that late-night orders for indulgences like chips, bhujia, and ice creams, as well as sexual wellness products and pan corner essentials, continue to come in between 11 PM and 6 AM. As the night fades, the focus shifts to breakfast staples such as milk and eggs.
This comes at a time when Swiggy is doubling down on expanding its quick commerce arm. The company recently filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) expected to be worth around Rs 10,000 crore. The company plans to raise Rs 3,750 crore via a fresh issue.
Following the IPO, the food delivery major is planning to use as much as Rs 982 crore – roughly 27 per cent of the IPO proceeds – to expand Instamart’s dark store network via its subsidiary Scootsy.
As of June 30, the company operated 581 dark stores, ranging in size from 1,400 to 10,000 sq ft.
Instamart is also rapidly outpacing its core food delivery vertical across several key financial metrics, Business Standard reported earlier.
In the first quarter (Q1) of financial year 2024-25 (FY25), Instamart’s gross order value (GOV) grew 56 per cent year-on-year (Y-o-Y) to Rs 2,724 crore. In contrast, its food delivery GOV grew by 14 per cent Y-o-Y to Rs 6,808 crore. The quick commerce vertical’s GOV is already at 40 per cent of food delivery GOV, despite being launched six years later.
Meanwhile, Instamart’s average order value (AOV), at Rs 487, has surpassed the food delivery AOV, which stood at Rs 487 in the June quarter.
First Published: Sep 30 2024 | 6:46 PM IST
