Swiggy, one of India’s top food delivery and quick-commerce platforms, unveils a groundbreaking feature, Maxxsaver, within its Swiggy Instamart service. The feature, now available across 100 cities, offers significant discounts on orders exceeding Rs 999. The company’s 10-minute delivery remains intact, and Swiggy BLCK members get additional perks. Swiggy’s strategic move follows its rival Zepto’s SuperSaver, but unlike Zepto’s opt-in model, Maxxsaver applies automatically at checkout. This initiative aligns with Swiggy’s broader strategy to increase order value and compete in India’s intensifying quick-commerce sector.
The company has reported a 14% rise in average order value, from Rs 469 to Rs 534, in Q3 FY 2025. The growing demand for fashion, electronics, home décor, and travel essentials has encouraged quick-commerce giants like Amazon Now, Flipkart Minutes, and Zepto to expand their footprints. However, analysts caution about rising losses and slower food delivery growth, with Swiggy downgraded to Underperform by Bank of America.
1. Swiggy’s Business Model, Revenue, and Services
1.1 Swiggy’s Quick-Commerce and Food Delivery Model
Founded in 2014 by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini, Swiggy initially started as a food delivery platform. Over time, it expanded into Instamart and Swiggy Genie, entering the quick-commerce and hyperlocal delivery segments. Swiggy Instamart, launched in 2020, now operates in over 100 cities, offering daily essentials, groceries, electronics, and fashion with an industry-leading 10-minute delivery promise.
1.2 Revenue Streams and Growth
Swiggy’s revenue comes from multiple channels:
- Commissions from restaurants and merchants – Swiggy takes a cut from partnered restaurants and quick-commerce sellers.
- Delivery charges – Revenue from customers paying for food and grocery deliveries.
- Subscription services – Swiggy One and Swiggy BLCK provide free deliveries and exclusive discounts.
- Advertising – Restaurants pay for higher visibility on the Swiggy app.
- Cloud kitchens – Swiggy’s private label brands generate additional revenue.
1.3 Funding and Market Position
Swiggy has raised over $3.6 billion from investors like SoftBank, Prosus Ventures, and Accel Partners. In early 2022, Swiggy became a unicorn startup valued at $10.7 billion. Despite facing stiff competition from Zomato’s Blinkit, Zepto, and Flipkart Minutes, Swiggy continues to expand its quick-commerce business aggressively.
2. Maxxsaver: Swiggy’s New Discount Feature
2.1 How Maxxsaver Works
Swiggy Unveils Maxxsaver, It automatically applies discounts when a customer’s Instamart cart exceeds Rs 999. Unlike Zepto’s SuperSaver, which requires an opt-in, Maxxsaver seamlessly integrates into the checkout process. It provides extra savings and exclusive deals for Swiggy BLCK members.
2.2 Why Swiggy Introduced Maxxsaver
Swiggy aims to increase basket size, making it profitable to operate in the thin-margin quick-commerce industry. Higher order values reduce logistics costs and increase customer retention. Swiggy also wants to compete directly with Zepto and Blinkit, both of which have launched pricing benefits for larger orders.
3. Industry Trends and Market Competition
3.1 Growing Competition in Quick-Commerce
India’s quick-commerce market, expected to reach $5 billion by 2025, is becoming increasingly competitive. Players like Amazon Now, Flipkart Minutes, and Zepto are expanding aggressively. Flipkart Minutes is reportedly planning 500-550 dark stores, while Zepto is shifting to an invite-only model with Zepto Daily.
3.2 Market Shift Towards Larger Cart Values
Industry trends suggest a rise in order values, as platforms push for higher-margin sales. Swiggy reported a 14% increase in average order value within three months, reinforcing this shift. Companies are adding electronics, home essentials, and beauty products to encourage higher-value transactions.
3.3 Challenges in Quick-Commerce
While quick-commerce is booming, analysts warn of rising losses. A Bank of America report downgraded Swiggy to Underperform and Zomato to Neutral, citing higher operational costs. Many startups struggle with thin profit margins due to free deliveries and heavy discounts.
4. Learning for Startups and Entrepreneurs
4.1 Importance of Customer-Centric Innovation
Swiggy Unveils Maxxsaver that showcases the power of customer-focused innovation. Entrepreneurs must constantly enhance customer experience to stay ahead in a competitive market.
4.2 Optimizing Logistics and Margins
Startups in quick-commerce must focus on unit economics. By encouraging bulk orders, Swiggy improves logistics efficiency, reducing costs per delivery.
4.3 Competitive Positioning Matters
Swiggy’s move aligns with its goal to outperform Zepto and Blinkit. Startups must strategically differentiate themselves to sustain long-term growth.
4.4 Data-Driven Decision Making
Swiggy’s 14% increase in average order value reflects a data-driven approach. Entrepreneurs must leverage real-time analytics to refine their business models.
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