Instamart’s inventory shift may do little to pare losses

Swiggy’s Instamart will begin owning the inventory it sells from the December quarter, following rival Blinkit’s shift to an inventory-led model, as quick commerce platforms seek greater control over pricing, product assortment and supply chains to improve profitability. However, the expected margin gains may be insufficient to bridge the gap to breakeven.

The transition, which will take two to three quarters, could improve Instamart’s contribution margin by about 80 basis points, the company has said. The shift follows changes in Swiggy’s shareholding structure, with domestic ownership crossing 58% after shareholders approved a cap of 49.5% on foreign ownership in August.