Swiggy’s Instamart branch is the latest in the industry to start a cafe-like branch called Instacafe. This move comes after its rival company Zepto launched a similar cafe-like branch called Zepto Cafe. Instacafe is the latest division that is explored as an expansion by Swiggy Instamart in order to make it a profitable venture. These items usually provide higher margins than grocery delivery.
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Announcing the launch of Instacafe, an official from Swiggy Instamart said that the offerings would include pre-made foods which will be available to buy at supermarkets. Instacafe presently provides pre-made snack items such as baos, cookies, coffee, tarts, puffs, sandwiches, croissants, etc. so that customers can check out their Instamart cart along with other grocery orders.
Instacafe comes as positive news for the brand Instamart after it introduced its own private brands and eventually also explored electronics and mobile accessories. Groceries will allow Swiggy to enhance its customer base and also earn more profits on a per-order basis.
Fast-moving snacks are one of the latest addition to the grocery baskets of customers and they are also delivered within minutes along with different items on Instamart. Instacafe is already launched in some places on Instamart since 2022.
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In certain areas of Hyderabad since last year, Instacafe was experimented with. It was then expanded to Bengaluru in March 2023 and is already in talks to improve its menu items, says a media report.
Instacafe presently has around 60 stock-keeping units – SKUs or items, which are available in some areas of Hyderabad and Bengaluru.
As of now, a report says that the items available in Instacafe are unbranded and are sourced directly by the dark store manager to serve a few areas.
Zepto Cafe, on the other hand, is known for buying brands in bulk quantities, delivering them to dark stores, and then later selling the snack items to users. Zepto has already associated with branded companies such as Blue Tokai and Chaayos, which uses to provide a more detailed and standardized menu.
Instacafe and Zepto Cafe are not majorly trying to replace their parent companies and thus, they are not delivering meals but only snack items. However, it is reported that meal options will also be contemplated to be included in their snack menu items.
In the past, quick-commerce was not ideal for companies like Zomato and Ola who tried their hands but didn’t taste any major success.
Swiggy Instamart can use Instacafe as an initiative to improve customer engagement and provide a different range of products and services. This will surely make customers want to come back to Instacafe and remember Swiggy Instamart for more.
No doubt, the introduction of such quick cafe services could lead Swiggy Instamart to have increased competition in the quick commerce space. It would also be ideal for customers who are looking for lower prices and quicker, better services.
The cafe services could also bring more people to order both grocery and cafe products from Swiggy Instamart. This may possibly be negatively influencing brick-and-mortar retailers.
