Swiggy’s Instamart pushes for higher average order value; analysts say metric's growth key to improve profitability
Swiggy Instamart, which reported 75% year-on-year gross sales growth in the September quarter, saw its average order value (AOV) of Rs 499 come in lower than some of its competitors.
Even though the company has indicated its AOV is on an upward path — it rose 7.8% on-year and 2.5% sequentially — sector analysts emphasised that it is crucial for Swiggy Instamart to push this metric to maintain revenue momentum as well as improve profitability.
Market leader Blinkit reported AOV of Rs 660 for the July-September period. The AOV of rivals Zepto and BB Now are understood to be around Rs 500.
In an interaction with ET after the company reported its quarterly results Tuesday, Swiggy founder and group chief executive Sriharsha Majety said the platform has embarked on a journey to increase its AOV.
The number of items offered on Instamart is going up and it expects the AOV also to go higher, Majety said. “In the market, we are only aware of the listed player (Zomato’s Blinkit) having higher AOV, and their vintage is of a stock-up player, and they’ve added more assortments earlier. Our journey is underway, and we expect it to show in the next few quarters,” he said.
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