After making the model work in metro cities, players in the quick commerce sector are rapidly expanding their footprint into smaller Tier-II cities and markets beyond that ahead of the festival season.
This past week alone, Swiggy's quick delivery arm Instamart has entered six new cities, launching in a new market every 33 hours. The firm has entered 11 new cities over the past two months, including Thrissur, Mangalore, Kanpur, Udaipur, Warangal, Salem, Amritsar, Bhopal, Varanasi and Ludhiana. Instamart now operates in a total of 43 cities.
Zomato-owned Blinkit has also been on a similar expansion journey. Over the past two weeks, Blinkit CEO Albinder Dhindsa has announced the company's foray into cities like Kochi, Bhatinda, Haridwar, and Vijayawada.
Meanwhile, Mumbai-based Zepto flush with funds after raising over $1 billion over the last year - had announced plans to enter ten new cities, up from the top 10 metro cities it already operates in. These include markets like Jaipur, Chandigarh and Ahmedabad.
The Tier-II+ challenge
However, expansion into smaller markets poses its own set of challenges. According to industry watchers, quick commerce firms operate on thin margins, relying on high order frequencies and higher average order values (AOVS) to bolster their margins.
Diese Geschichte stammt aus der September 11, 2024-Ausgabe von Business Standard.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der September 11, 2024-Ausgabe von Business Standard.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
Global PE firms turn to India for Asia leadership
This comes amid slowdown in deal-making in China
GLOBAL INVESTOR CONSORTIUM LINES UP ₹2,100 CRORE INVESTMENT FOR SP GROUP
Engineering and construction major Shapoorji Pallonji group is gearing up to receive investments of over ₹2,100 crore from a consortium of global investors led by Deutsche Bank, according to sources.
Binance detaches self from liabilities after WazirX hack
Global cryptocurrency giant Binance has asserted that it never owned or controlled WazirX before or after the embattled Indian exchange was hacked in July that led to a security breach of more than $230 million.
Indian carriers soar on int'l routes but foreign rivals lead
Indian airlines are ramping up their international presence by adding more direct flights.
SC dismisses curative pleas by telcos against AGR dues
The Supreme Court has rejected curative petitions seeking a review of its 2019 judgment on adjusted gross revenues (AGR) payable by telecom firms.
Strong hybrid car sales take off in UP after tax waiver
Monthly sales of strong hybrid cars in Uttar Pradesh have more than doubled following the state government's decision to scrap the registration tax on such vehicles from July 5.
In export push, govt steps in to raise container capacity
Commerce Minister Piyush Goyal announces purchase of second-hand vessels
Govt asks EY India to explain position on CA's death
The Union labour ministry has asked EY India's management to appear before it and explain its position regarding the death of its 26-year-old employee, Anna Sebastian Perayil, a senior labour ministry official said.
Samsung India sues union over disruption
Electronics' India unit has sued members of a labour union that has led a strike for 11 days at its only Indian home appliances plant in Tamil Nadu, escalating tensions with its workers, legal papers show.
'Australia seemed like a natural-growth area for us'
RPSG group-owned business process management (BPM) firm Firstsource has announced its expansion into Australia and New Zealand. SANJIV GOENKA, chairman, RPSG, in an interview tells Ashutosh Mishra in New Delhi that this will open up avenues for the company and create jobs locally. He gives insights into the plans to increase margins for Firstsource in the next 30 months through organic and inorganic growth. Edited excerpts:
