In a bid to keep up with stiff competition in the booming express delivery segment, the online grocery delivery platform is looking to bet on its sister entity, Croma, and boost its quick commerce game by venturing into high-value electronics.
Tata-owned BigBasket will soon expand the electronics category on its quick commerce arm, BB Now, to include mobile phones and wearables. The grocery platform will tap into its adjacencies by tying up with its sister concern, Croma, a Tata Digital-owned consumer electronics retail chain.
“While there is some time before we can think of delivering bigger appliances like refrigerators and washing machines in 20 minutes, we will soon start with smaller ones such as mobile phones and wearables,” BigBasket CEO and co-founder Hari Menon told Outlook Business on the sidelines of India Global Innovation Connect (IGIC) in Bengaluru on Thursday.
BigBasket’s quick commerce arm, BB Now, already sells electronics and home appliances such as audio devices, power banks, mixers and grinders, and vacuum cleaners. BB Now offers to deliver groceries and other necessities in two delivery duration options: BB Super Saver promises to deliver within two hours with more savings, while BB Now delivers in 15–30 minutes.
Although Tata-backed BigBasket was India’s first foray into online grocery delivery in 2011, it was late to the quick commerce party. While the current top three players—Zomato-owned Blinkit, Swiggy Instamart, and Zepto—launched their quick commerce platforms in 2020 and 2021, BigBasket launched BB Now only in April 2022.
After the coming of quick commerce, people do not want to wait or plan anymore, Menon said during his panel discussion at the IGIC summit. He further added that people do not stock groceries anymore. “This is a complete change and a new way of doing things. This business called Quick Commerce is here to stay,” he said.
In the last few months, Blinkit, Swiggy Instamart, Zepto, and BigBasket have all expanded their quick commerce categories by foraying into new categories of products such as electronics, apparel, and home appliances. These high-value products were usually bought over e-commerce platforms with a one-day delivery time. However, all four players in the oligopolistic space have since doubled down on the segment after tasting success.
“All companies, including BigBasket, have now proven that it's (quick commerce) commercially viable. The business has scaled really fast, which is a significant change in consumer behavior. I think, going forward, you'll see significant investments in this space,” Menon said.