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Swiggy, a prominent player in the on-demand food and grocery delivery sector, has embarked on a strategic shift by introducing three standalone mobile applications. This move marks a significant departure from its previous reliance on a single unified app that encompassed all its services. The newly launched apps include Pyng, a platform for professional services; Snacc, a 15-minute food delivery service currently operational in select Bengaluru pin codes; and most notably, a standalone application for Instamart, Swiggy's grocery delivery service. While Instamart will remain accessible through the main Swiggy app, the introduction of a dedicated app signifies Swiggy's ambition to enhance user experience and capitalize on the rapid growth trajectory of its grocery delivery arm. This decision reflects a calculated risk, challenging the prevailing notion that a single, unified app is the optimal strategy for consolidating various services under one umbrella.
The rationale behind Swiggy's multi-app approach is multifaceted. Amitesh Jha, CEO of Swiggy Instamart, emphasizes the rapid expansion of Instamart, highlighting its 10-minute delivery promise and the expansive product range of nearly 50,000 items. He posits that the dedicated Instamart app is crucial for seamless user adoption and access, particularly in a sector where Swiggy believes it has only scratched the surface. Notably, all Swiggy One benefits will extend to users accessing Instamart through either the main Swiggy app or the standalone app, ensuring a consistent user experience across platforms. This strategy is a departure from its rival Zomato which uses separate apps for different services. The decision to create separate apps, therefore, isn't merely about optimizing user experience but also about optimizing growth and market share in a fiercely competitive landscape.
The move to a multi-app strategy has sparked debate within the industry. An early-stage venture capital investor, speaking anonymously, suggests that Swiggy's previous success with a unified app, particularly the rapid adoption of Instamart by existing food delivery users, might justify a shift towards separate apps. The rationale, as articulated by the investor, is simple: provide customers with what they want. However, this view contrasts with Swiggy's past pronouncements and its stated belief in the advantages of a unified app strategy. In its red herring prospectus, Swiggy argued that successful global hyperlocal commerce platforms have built their foundation on high-frequency, sticky categories like food delivery, leveraging them to acquire consumers and generate consistent direct traffic to their unified apps. This, Swiggy contended, then facilitates the seamless launch of additional offerings such as fintech, mobility, and travel, enhancing user engagement and profitability. This philosophy led to the previous integration of Supr Daily (rebranded as InsanelyGood) into the main app after its successful launch as a separate entity. While Dineout, acquired in 2022, remains a separate app, it also has a presence within the main Swiggy app.
Sriharsha Majety, Swiggy's managing director and group CEO, reinforces the company's strategic flexibility, emphasizing that the standalone Instamart app is an add-on intended to expand reach and meet consumers where they are. He acknowledges the past success of the unified app strategy, particularly highlighting the cross-pollination of users across different services and the positive reception of the Swiggy One membership program. Yet, he stresses the importance of adapting to market dynamics. He describes this multi-app approach as a 'violent' execution of their current strategy, while remaining open to adjusting their approach based on emerging opportunities or shortcomings. His statement, delivered shortly before Swiggy's initial public offering (IPO) in October 2024, underscores the company's intention to maintain a balance between leveraging the proven strengths of its unified app and proactively expanding its reach through dedicated applications, reflecting a calculated gamble in a highly competitive market.
The launch of these standalone apps represents a significant strategic shift for Swiggy, showcasing a willingness to adapt and evolve its business model. The long-term success of this multi-app strategy will depend on various factors, including user adoption, seamless integration across platforms, and the overall competitive landscape. While Swiggy has expressed confidence in its ability to maintain cross-pollination benefits through its Swiggy One program, the true impact will only become evident over time. This move represents a high-stakes gamble in a dynamic market and will be closely watched by competitors and industry analysts alike. It will be interesting to see whether other companies follow suit or stick to the tried-and-true unified app strategy.
Source: Swiggy eyes multi-app strategy with rollout of 3 standalone apps