Swiggy Instamart · Metrics · Mid · 45 to 60 minutes

Why are fewer new Instamart users buying?

Swiggy Instamart is Swiggy's quick commerce service for ordering groceries and household items for fast delivery. Answer this product management case and get it graded line by line against a weighted rubric.

funnel analysis
metrics thinking
hypothesis generation
prioritization
trade-off judgment

The situation

You are the PM for new user conversion on Swiggy Instamart. Your product leader asks you to diagnose why fewer users are completing their first Instamart purchase. Assume first purchase completion among new users in Tier 1 cities such as Bangalore and Mumbai has fallen from 18 percent to 12 percent over the last three months, while repeat user behavior remains stable. Leadership expected recent onboarding changes to improve signup quality by collecting valid addresses earlier, but there is concern that the extra steps may be adding friction before users can browse the catalog. At the same time, a major competitor has started offering free delivery on first orders, so not everyone agrees this is mainly a product issue. You have one week to produce a clear view of where the funnel is breaking for new users, what evidence would confirm the likely causes, and which fixes or experiments Instamart should test first. The challenge is to separate external competition from internal funnel friction and avoid jumping straight to solutions.

What to produce

A 2 page root cause diagnosis memo.

Your answer must

Define the primary success metric and 3 to 5 supporting funnel metrics, and specify the first user segments you would analyze.
List 8 to 12 clarifying questions you would ask, grouped by theme, and explain which answers would most change your direction.
Describe the first purchase funnel from app open to order completion, and identify the most likely breakpoints for new users.
Present 3 to 5 root cause hypotheses grounded in the scenario, including at least one internal product cause and one external market cause.
Recommend the first 3 actions or experiments to run, prioritized by impact and effort, with expected learning, trade-offs, and success criteria.

Constraints

Keep the scope to improving first purchase completion for Instamart, not long term retention or other Swiggy businesses.
Assume engineering capacity is limited, so at least two recommendations must be shippable as low or medium effort tests within 6 weeks.
Do not remove early address collection without proposing how address validity or signup quality would still be protected.
You may not rely on new city launches, logistics network changes, or large paid marketing increases.

Format

Use five sections: success metric, clarifying questions, funnel analysis, hypotheses, prioritized tests.

How Swiggy Instamart actually played it

Diagnoses why fewer new users complete a first purchase on Swiggy Instamart, using clarifying questions, the user journey and a ranked set of causes and fixes.

First purchase is a funnel to be mapped step by step
Check new versus returning users separately
Prioritize fixes by effort and likely lift

Built from Root Cause Analysis: Instamart first purchase completion by Sreerag Panat.