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Swiggy’s Instamart pushes for higher average order value; analysts say metric's growth key to improve profitability

Economic TimesEconomic Times · 1m
Swiggy’s Instamart pushes for higher average order value; analysts say metric's growth key to improve profitability

Swiggy Instamart, the quick commerce platform, experienced a lower average order value (AOV) of Rs 499 compared to its competitors such as Blinkit, Zepto, and BB Now. Swiggy has acknowledged the need to increase its AOV in order to maintain revenue growth and improve profitability. The company plans to expand its offerings and expects the AOV to rise as a result. Swiggy's megapods strategy, which involves setting up larger dark stores, is aimed at increasing the number of available products and potentially boosting the AOV. Swiggy reported a 30% YoY increase in consolidated operating revenue for the quarter. The company aims for Instamart to achieve operational breakeven by 2026 and expects double-digit YoY growth in AOV.

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