THE LOSSES HAVE been piling up at quick commerce players in the last couple of years creating doubts on whether these businesses will ever make money. But Blinkit has managed to staunch the bleeding and break even at the contribution level; analysts say this is the result of fulfillment centres having moved closer to consumers as also a quicker churn of the inventory. To be sure, the addressable opportunity is a big one-the space is estimated to grow to $5.5 billion by 2025 from an estimated $1-1.25 billion in 2023 and is likely to hit $40 billion by 2030. Which is why investors are keeping the faith; they believe Zepto, Instamart and BBNow too can make a business out of it.
According to Bain & Company, Q-commerce orders have doubled this year over 2022 and now account for a chunky 40% of India's e-grocery spend. The unit economics is getting better for some thanks to a combination of scale, bigger average order values, higher order density and value-added fees. Blinkit, for instance, posted a smaller loss in the September quarter of ₹94 crore than the ₹119 crore in Q2FY23. The Swiggy management says Instamart is close to "contribution neutrality" with most of the investment behind it. At Zepto-a late entrant-losses widened to ₹1,272 crore in FY23 from ₹390 crore in FY22. It's hard to tell how BBNow, a small part of Big Basket, is faring but the parent's loss went up to ₹1,535 crore in FY23 from a loss of ₹813 crore in FY22.
Denne historien er fra January 01, 2024-utgaven av Financial Express Mumbai.
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Denne historien er fra January 01, 2024-utgaven av Financial Express Mumbai.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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