Eternal says private labels should not be central to Blinkit’s growth, while Swiggy is using Instamart’s partner products and Noice brand to stand out as quick commerce becomes more commoditized.
In its Q2 FY27 shareholders’ letter published Oct. 21, Eternal said private labels did not pass its tests for adding demand or improving margins. CEO Albinder Singh Dhindsa said the approach “doesn’t pass either of these tests.”
Eternal said developing products requires work in areas such as quality control, inventory, sampling and marketing, which established brands can handle more efficiently. The company said Blinkit can give outside brands shelf visibility and create advertising opportunities. EconoTimes previously covered Eternal’s case against expanding Blinkit labels.
Blinkit’s catalog lists a 500-gram pack of Whole Farm Premium Chana Dal. The Economic Times has described Whole Farm as a private-label line, but the listing alone does not indicate whether Eternal plans to expand it.
Swiggy’s Q1 FY27 letter said Instamart’s Switch to Better selection spanned 50 categories and had partnerships with more than 400 brands. Swiggy reported that the selection accounted for more than 15% of category sales soon after launch. It also said customers who bought from the selection had 30% higher retention than benchmark cohorts; that comparison does not show that the products caused the difference.
Swiggy has described quick commerce as becoming more commoditized, with speed, pricing and assortment offering less distinction. On a July 30 earnings call, Managing Director and Group CEO Sriharsha Majety said many Switch products were exclusive items, while some were offered at exclusive prices. In its Oct. 22 release, Swiggy said differentiation would matter as speed and selection become basic expectations.
Instamart’s contribution margin was -1.0% of gross order value in the quarter ended Sept. 30, down 82 basis points from the prior quarter, Swiggy reported. The company added 69 dark stores, bringing the total to 1,240, and did not attribute the margin change to its assortment. The next quarterly update could indicate whether Swiggy sustains the reported traction while managing margins.
