In the perpetually competitive market of rapid commerce, Swiggy Instamart has taken a calculated step by rolling out its fresh savings feature, Maxxsaver. The news comes as the platform aims to respond to Zepto‘s Super-Saver proposition, fueling the war of value-driven grocery delivery.
The Race for Bulk Orders
Historically, rapid commerce has relied on high volumes of small-ticket orders. That is changing, though, as the sector sees a strategic shift towards incentivizing bigger, planned buys. Zepto, which pioneered the category, introduced Super-Saver to drive AOV by providing discount on bulk grocery buys. In turn, Swiggy‘s Maxxsaver is designed to automatically apply savings of up to Rs 500 at the time of checkout when a predefined cart value is reached. Swiggy’s feature fits in seamlessly with the purchasing process, unlike Zepto’s model, which asks customers to search through a particular section to find deals.
Shifting from Convenience to Value
Swiggy’s quick commerce model has undergone a structural shift with the launch of Maxxsaver, heading closer to traditional bulk-order retailers like BigBasket. Enhancing AOV and utilising household-level grocery shopping rather than impulsive top-up shopping is the strategic move. While profitability per order drops percentage-wise, the increased AOV makes earnings per order more or even equal, say experts in the industry.
The Competitive Edge
Maxxsaver is now live in over 100 cities, offering lower prices on a wide range of products, including groceries, personal care, electronics, toys, and fashion. For first-time users, Swiggy has introduced visual cues in the app, such as progress bars and savings indicators, to encourage bulk buying. Amitesh Jha, CEO of Swiggy Instamart, emphasizes that Maxxsaver provides frictionless savings for both small and large orders.
Market Dynamics
While Swiggy and Zepto are going whole hog on value-driven models, Blinkit continues to play a premium convenience position, with growth through expanding categories instead of bottom-of-the-pyramid-style deep discounts. The move to bulk buying for quick commerce can change customer behaviour and redefine the competitive dynamics for the segment.
In addition to competing with Zepto, Swiggy is redefining its approach to speedy commerce with Maxxsaver, emphasizing value without compromising convenience. It remains to be seen whose approach will win over customers over the long haul as the competition for their loyalty heats up.
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