The quick commerce segment is getting crowded. The latest company that is planning to enter the space is Tata. The group is planning to enter the quick commerce space with its e-commerce segment Neu.
As of now, the platform will sell services including grocery, electronics and fashion
The quick commerce segment is getting crowded. The latest company that is planning to enter the space is Tata. The group is planning to enter the quick commerce space with its e-commerce segment Neu.
This is as per an Economic Times report. The service which will be available to select users will be rebranded as Neu Flash. As of now, the platform will sell services including grocery, electronics and fashion. For groceries, Tata’s quick delivery service, Neu Flash, will use BigBasket, which is also focusing on shifting completely to the quick commerce segment.
Meanwhile, electronics and phones in the platform will be available via Croma. Additionally, Tata Cliq will focus on offering fashion and lifestyle items, adds the report. This comes at a time when several players have entered the quick commerce race including Reliance and Flipkart. Other prominent players in this segment includes Zomato’s Blinkit, Swiggy’s Instamart, Zepto and others.
The quick commerce space has been increasing rapidly in India. “In the dynamic landscape of retail and ecommerce, one trend has emerged as a game changer: the meteoric rise of quick commerce (q-commerce) in India. Q-commerce, with a $2.8 Bn current market size, is set to become a disruptive force, poised to reshape the retail industry as we know it,” as per Redseer Strategy Consultants. Additionally, a recent note by Bernstein highlights that quick commerce has been growing rapidly in the country. Further, the growth rate of this space is faster than retailors such as Reliance Retail, Dmart and Spencer Retail.
Speaking about Tata’s quick commerce plan, a source told the Economic Times that the company is focusing on strategic brand partnership before is quick commerce debut. Meanwhile, along with a focus on metro cities, quick commerce platforms are also focusing on expanding to tier II cities. For instance, Zomato’s Blinkit recently expanded its footprints in tier ii cities such as Kochi, Bhatinda, Haridwar, and Vijayawada.
Meanwhile, this segment is also seeing an increase in investor interest. For example, quick commerce platform Zepto is reportedly planning to raise around $100-150 million from family offices and wealthy individuals. Once completed, the firm would raise over $1.5 billion in just four months, reads a report by the Economic Times. Additionally, Swiggy is all decked up to go public. Reports suggest that the company will go public between November 6-8. The valuation of the company is around $11.3 billion. Further, Zomato’s board has also approved a Rs 8,500 crore through a qualified institutional placement (QIP) of shares.