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Swiggy has rebranded its morning grocery delivery service SuprDaily to InsanelyGood, continuing the service in pilot mode in Bengaluru.

InsanelyGood will offer more than 3,000 locally sourced and organic food items, including fruits and vegetables, grains, snacks, beverages, baby food, and kitchen essentials, according to a company executive in the know.

The rebranded service will offer next-day delivery for a fee and do away with SuprDaily’s subscription model.

Orders placed before 10 pm will be fulfilled by 7 am the following day. It is not known if the firm’s membership programme Swiggy One will apply to orders on InsanelyGood immediately.

“InsanelyGood by Swiggy offers customers fresh, authentic, and delicious groceries delivered to their doorstep the next morning. We are currently running a pilot program in Bangalore,” said a Swiggy spokesperson, in response to YourStory’s queries.

The company did not disclose if the feature will be introduced in other cities in the future.

InsanelyGood will have a wider variety of premium products than Instamart, Swiggy’s largest category after food delivery; it will cater to the monthly grocery needs of consumers, while Instamart serves daily needs, said the executive.

Transition from subscription

The food delivery major had rolled back operations of the subscription-based SuprDaily service in Delhi-NCR, Mumbai, Hyderabad, Chennai, and Pune in May as it struggled to contain losses and expressed an intention to work towards “a clear path to profitability.” SuprDaily continued to operate only in Bengaluru.

“As a part of the restructuring, Supr Daily will suspend operations in Delhi-NCR, Mumbai, Pune, Hyderabad and Chennai. We have a detailed transition and closure plan in place to make it less painful for our users as well as brand and vendor partners. We will continue to serve users in Bangalore and double down on our efforts here,” Swiggy had said in a blog post at the time.

Swiggy had acquired SuprDaily in 2018 and brought it under the company as a separate unit in September 2021, putting it in direct competition with Tata-owned BigBasket, Dunzo Daily, Amazon Fresh, Country Delight, and Reliance-owned Milkbasket.

The company’s co-founders Puneet Kumar, Shreyas Nagdawane, and Rohit Jain had quit the company at the time of integration. Swiggy’s co-founder Phani Kishan was made the CEO.

When Swiggy acquired SuprDaily, it was handling nearly 6,000 orders a day in a few suburbs of Mumbai. This was scaled to fulfil 2 lakh daily orders across six cities over the next four years. However, profitability in the segment was elusive.

SuprDaily registered a gross merchandise value of Rs 165.9 crore in the second quarter of 2021, compared to Rs 118 crore in the previous three-month period.

Swiggy’s move to remodel its hyperlocal delivery service comes at time when quick commerce players have realised the tricky economics of the space.

Reliance-owned JioMart shut its express delivery vertical last month. Some players, including Swiggy’s Instamart, Zomato’s Blinkit, and BigBasket’s BBNow are looking to increase order values and lengthen delivery timelines to cut losses. Y Combinator-backed Zepto recently introduced a scheduling service for groceries, silently backing out of its 10-minute delivery promise.

Swiggy’s move to fulfil next-day delivery is a sensible move, which offers an opportunity to upsell, said Rahul Maheshwari, Partner at Verlinvest-backed V3 Ventures.

“Swiggy has already established a logistics network for Instamart, which can be integrated with InsanelyGood for more efficient economics for hyperlocal delivery,” he said.