Swiggy has dismissed recent claims suggesting that its quick-commerce arm, Instamart, is ceding significant market share to rival Zepto. The company’s response comes on the heels of a report highlighted in a November 27 article titled “Swiggy Rejects Report Claiming Instamart Losing Market Share to Zepto,” published by StartupNews.fyi.
According to the StartupNews.fyi report, unnamed sources had suggested that Zepto was gaining ground rapidly in India’s growing quick-commerce sector, potentially eroding Instamart’s dominance. In reaction, Swiggy issued a firm denial, asserting that Instamart remains a leading player in the segment and continues to grow both in scale and customer engagement.
“We categorically deny claims of market share erosion,” a Swiggy spokesperson stated, according to the report. “Instamart maintains healthy order volumes and a loyal customer base across key metros.”
The competition between Instamart and Zepto underscores the increasingly crowded and fast-evolving landscape of ultrafast delivery services in India. With consumer expectations around delivery speed and assortment reaching new heights, companies are under pressure to ensure operational efficiency while also achieving profitability. Both Swiggy and Zepto have invested heavily in their fulfillment infrastructure to capture a loyal urban customer base that demands groceries and daily essentials within minutes.
Industry observers note that while Zepto has raised substantial funding and expanded its operations aggressively, it is too early to determine lasting shifts in market leadership. Recent metrics, such as delivery times, order frequency, and geographic coverage, vary too widely by location to draw sweeping conclusions, analysts say.
Instamart, launched by Swiggy in 2020, has been a crucial component of the company’s broader diversification strategy beyond food delivery. Swiggy has relied on verticals like Instamart to drive higher customer stickiness and frequency, key factors for long-term sustainability in India’s competitive tech ecosystem.
With rising investor scrutiny and a tightening funding environment for quick-commerce firms, both Swiggy and Zepto face mounting pressure to control costs while retaining market share. In that context, public assertions of dominance—and rebuttals of contrary claims—are likely to become more frequent.
Despite the war of words, both platforms continue to push aggressive expansion strategies, including investing in private-label brands, dark stores, and targeted promotional campaigns. As rapid-commerce firms chase leadership in major urban centers, customer loyalty and operational execution may ultimately prove more decisive than short-term fluctuations in order volumes.
For now, Swiggy remains steadfast in defending Instamart’s position, signaling that the battle for dominance in India’s quick-commerce space is far from settled.
