Swiggy won’t engage in Walmart-Reliance spending war even if it means losing some customers
Sriharsha Majety said Swiggy will focus on differentiation rather than matching competitors’ incentives.
- May 28, 2026,
- Updated May 28, 2026 3:04 PM IST
Swiggy will avoid engaging in the spending war in quick commerce as competitors with deeper pockets increase efforts to reduce delivery times and offer wider discounts. Group CEO Sriharsha Majety said the company will prioritise profitability instead of matching every aggressive market move.
He told Bloomberg News that Swiggy chose not to keep pace with Walmart Inc’s local arm and Reliance Retail Ltd., which are competing to deliver goods to more customers in as fast as 10 minutes.
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Majety stated that Swiggy is willing to lose some users in the short term to retain more profitable and loyal customers, according to the news site. This approach comes amid one of the world’s most closely watched consumer-tech battles in India, with investors such as SoftBank Group Corp., Temasek Holdings Pte., and Middle Eastern sovereign funds investing billions in the sector. They believe that dense cities, lower labour costs, and widespread digital payments can support a quick-delivery model that has struggled in the US and Europe.
Swiggy’s Instamart business operates over 1,100 small warehouses across cities, supplying gig workers who deliver groceries, electronics, and household items within minutes. The company, which also runs one of India’s top two food-delivery apps, added only seven stores in the March quarter. Majety said investors remain unconvinced until the company can demonstrate a clear path to growth and profitability at Instamart, adding that joining the spending war only delays the problem.
Majety said the company will focus on differentiation rather than matching competitors’ incentives. This means providing customers with reasons to return that are harder to replicate than discounts alone.
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Part of this strategy includes a new private-label grocery business focusing on fresher and harder-to-source products, such as Indian cottage cheese with a short shelf life and fresh clotted cream usually unavailable in large retail chains. Customers buying these products show significantly higher repeat purchases and retention.
He compared this approach to segmentation in US retail, saying, “Whole Foods solves a very different consumer problem from Walmart, from Costco, from a bodega.” Majety emphasised that the business depends less on capital access and more on logistics density and hyper-local execution. To illustrate, he referred to the telecom sector battle earlier this year.
Majety said Swiggy is already seeing benefits from restraint.
Swiggy will avoid engaging in the spending war in quick commerce as competitors with deeper pockets increase efforts to reduce delivery times and offer wider discounts. Group CEO Sriharsha Majety said the company will prioritise profitability instead of matching every aggressive market move.
He told Bloomberg News that Swiggy chose not to keep pace with Walmart Inc’s local arm and Reliance Retail Ltd., which are competing to deliver goods to more customers in as fast as 10 minutes.
MUST READ | Inside Swiggy’s battle to become an Indian-owned company and why Eternal had it easier
Majety stated that Swiggy is willing to lose some users in the short term to retain more profitable and loyal customers, according to the news site. This approach comes amid one of the world’s most closely watched consumer-tech battles in India, with investors such as SoftBank Group Corp., Temasek Holdings Pte., and Middle Eastern sovereign funds investing billions in the sector. They believe that dense cities, lower labour costs, and widespread digital payments can support a quick-delivery model that has struggled in the US and Europe.
Swiggy’s Instamart business operates over 1,100 small warehouses across cities, supplying gig workers who deliver groceries, electronics, and household items within minutes. The company, which also runs one of India’s top two food-delivery apps, added only seven stores in the March quarter. Majety said investors remain unconvinced until the company can demonstrate a clear path to growth and profitability at Instamart, adding that joining the spending war only delays the problem.
Majety said the company will focus on differentiation rather than matching competitors’ incentives. This means providing customers with reasons to return that are harder to replicate than discounts alone.
DON'T MISS | Why your Swiggy-Zomato order may get costlier now, here’s the math
Part of this strategy includes a new private-label grocery business focusing on fresher and harder-to-source products, such as Indian cottage cheese with a short shelf life and fresh clotted cream usually unavailable in large retail chains. Customers buying these products show significantly higher repeat purchases and retention.
He compared this approach to segmentation in US retail, saying, “Whole Foods solves a very different consumer problem from Walmart, from Costco, from a bodega.” Majety emphasised that the business depends less on capital access and more on logistics density and hyper-local execution. To illustrate, he referred to the telecom sector battle earlier this year.
Majety said Swiggy is already seeing benefits from restraint.