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Here’s why Swiggy made its subscription-based service Supr Daily a separate unit under parent company

Counting Instamart, Swiggy now has two brands for grocery delivery; but it doesn’t appear to be merging them any time soon.

Swiggy’s subscription-based grocery delivery service Supr Daily has been made a separate business unit within Bundl, the parent company of Swiggy, the company announced on September 28. Swiggy’s newly elevated co-founder Phani Kishan will take reign as chief executive officer of Supr while Supr’s cofounders Puneet Kumar, Shreyas Nagdawane, and Rohit Jain will exit, the company said.

This move marks an important step in Swiggy’s increased focus on its non-food delivery businesses.

What does this restructure mean for Supr?

Supr’s organisational structure now mirrors that of Swiggy (food delivery) and Instamart (grocery delivery).  “This will help Supr with the advantages that Swiggy has access to and accelerate its journey,” the company said.

The change allows Supr to immediately tap into the resources and structures already available within Swiggy in terms of support functions of HR, Admin, Legal, IT, and Finance. However, Supr will continue to have dedicated business teams to ensure the “necessary focus and nimbleness to achieve their goals,” Swiggy said.

Why has Swiggy made this change?

“While food delivery continues to be our flagship category, we’ve also made some great progress in realizing our larger vision of elevating the quality of life by delivering unparalleled convenience,” Swiggy CEO Sriharsha Majety said. “We’ve done this on the back of strong traction in the grocery delivery business. This business is 10x the size of the food services industry.”

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“We have the potential to build a category that is larger than our food delivery business,” Majety added. (emphasis ours)

“Supr Daily currently serves ~500k customers on a monthly basis and delivers ~200k daily orders across six cities. The category has immense potential and we’ve been thinking through the several structures that best set it up for success in the long term.” — Swiggy CEO Majety

In August, when Swiggy closed its $1.25 billion investment round, Majety made it clear that much of the funds will be diverted to the company’s non-food businesses.

Why does Swiggy have two brands for grocery delivery?

Swiggy has two brands that focus on grocery delivery: Supr Daily and Instamart, but the company doesn’t appear to be merging the two any time soon. Rather, Swiggy is doubling down on the growth of both these brands. Swiggy is using these two brands to target two different customer segments:

Instamart: Instamart, which allows grocery ordering from within the main Swiggy app, is focused on quick deliveries. In August, when the company expanded from Bengaluru and Gurugram to five more cities: Delhi, Mumbai, Hyderabad, Chennai, and Noida, Instamart promised a delivery time of 15-30 minutes. The major competitors in this segment are Tata-owned BigBasket, Zomato-backed Grofers, and new-entrant Jio Mart.

Supr Daily: While delivering almost the same range of products as Instamart, Supr has its own dedicated app and is focused on subscription-based orders of daily essentials like milk and eggs rather than fast, one-time orders. The major players here are Reliance-owned MilkBasket, Dailyninja, and BigBasket Daily.

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