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Quick commerce race tightens as Tata set to enter market with Neu Flash

For grocery deliveries, Neu Flash will utilise BigBasket while Croma will provide electronics and mobile phones, and Tata Cliq will manage fashion and lifestyle products

Quick commerce (Q-comm) platforms are bringing upon a rapid change in the behaviours of online shoppers, with 31 per cent of buyers relying on the fast delivery option for grocery needs, according to a new study. online grocery kirana

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Abhijeet Kumar New Delhi

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Following the likes of Flipkart and Reliance Industries, Tata is all set to foray into the quick commerce segment with Neu Flash, initially targeting select users and offering groceries, electronics, and fashion items amid rising demand from urban customers.
 
Neu Flash will expand its reach in the coming weeks.
 
For grocery deliveries, Neu Flash will utilise BigBasket—which is shifting fully to a quick-commerce model, while Croma will provide electronics and mobile phones, and Tata Cliq will manage fashion and lifestyle products, according to a report by The Economic Times.
 
This initiative marks the latest move by the Mumbai-based conglomerate, spanning industries from steel to salt, to capture online shoppers. Their e-commerce venture, Neu, has been expanded as Neu Flash to foray into the ultra-fast delivery segment.
 
 
Currently, Blinkit (owned by Zomato), Swiggy Instamart, and Zepto dominate the quick commerce market with over 85 per cent share.
 
Meanwhile, Flipkart offers its own rapid service called Minutes and Reliance JioMart is retesting a similar service after previously halting its 90-minute delivery option, JioMart Express.
 

Rapid growth of quick commerce

 
Quick commerce is outpacing growth in established retail chains like Reliance Retail, Dmart, and Spencer Retail, according to a recent Bernstein report, disrupting both ecommerce and traditional retail. This shift has led many consumer platforms to adapt, offering a broad range of products delivered within 10-20 minutes, beyond just groceries.
 
It will be noteworthy to see how Tata Neu navigates the quick commerce market, especially as the group is reportedly cautious with spending on customer incentives. Meanwhile, market leaders, bolstered by ample capital, are aggressively pursuing market share. Zepto, for example, is raising up to $150 million from domestic investors following a $1 billion valuation round in just two months, positioning itself as a key competitor to market leader Blinkit, which is estimated by analysts to hold around 40 per cent of the market.
 
Tata’s e-pharmacy, 1mg, which currently delivers within a few hours in selected areas like Delhi NCR, has not fully joined Neu Flash. However, essential items like pain reliever medicines and protein supplements are available for 10-minute delivery on the platform.
 
BigBasket’s quick commerce arm, BB Now, employs a tiered fee model based on order size. To stay competitive amid increased sector investment, Blinkit is currently offering free delivery on orders above Rs 199, and Swiggy has reduced its free delivery threshold to Rs 99. These pricing adjustments reflect Zomato’s plans to secure an additional $1 billion to bolster its quick commerce operations, especially as the festive season drives higher consumer spending.

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First Published: Oct 28 2024 | 2:18 PM IST

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