Given the quick commerce space is tipped to grow at 30-35% annually, this is not surprising. The market could be worth 1.5 trillion a year-about 25 million households spend an average of 4,0005,000 a month to have goods and goodies delivered home within 1030 minutes. It would explains Goyal's conviction on Blinkit's prospects. It would also explain why Flipkart has decided it wants to be part of the space once again.
Today, qucik commerce services reach some 25 cities and experts say this could double in the next five years. But the large market isn't the only reason why Goyal is so keen on the space or why Flipkart is looking to make a comeback. It's because this is not a winner-takes-it-all kind of market there's room for three or four players to do well.
As Sachin Salgaonkar and Shalav Saket, who analyse the sector at Bank of America, point out, no one player would be able walk away with the lion's share. "The market share between the players would gravitate towards 35%, 30% and 25% for the top three and may not see a disproportionate 50-60% plus share for one player," they opine. As Ravi Kapoor, Partner and Leader - Retail & Consumer PwC, says, at an annual $3 billion, the quick commerce market is yet to mature. Also, Kapoor believes that the AoV (average order value), density and frequency are equally important to deliver profits and the reason it's hard for one player to corner a disproportionate share.
This story is from the March 21, 2024 edition of Financial Express Mumbai.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the March 21, 2024 edition of Financial Express Mumbai.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Murdoch ally helps Ambani build media empire in India
SOHEE KIM PR SANJAI
Pandya, Dube & Rinku: Can they finish for India at T20 World Cup?
GOING INTO THE 2022 T20 World Cup in Australia Dinesh Karthik was assigned the finisher role and the batting lineup was built accordingly.
Nestle adds sugar to infant milk and cereal, finds report
A NEW REPORT has revealed that Nestle, the world's largest consumer goods and manufacturer of baby formula, is adding sugar to infant milk and cereal products sold in India, and other Asian, and African countries.
India-made Daimler's electric mini truck to hit the road soon
INDIA WILL BE host to German trucking giant Daimler's only electric vehicle plant outside of Europe and Japan when it launches a locally-made electric light cargo truck in FY25.
Samsung eyes ₹10,000 cr from India TV biz this year
SOUTH KOREAN GIANT Samsung is targeting a turnover of ₹10,000 crores for its television business in India this year, driven by growth in sales of its mid to-premium segment models, said Mohandeep Singh, senior VP, consumer electronics business in India.
Microsoft AI Copilot speed boost for coding
WHEN SOFTWARE DEVELOPER Nikolai Avteniev got his hands on a preview version of Microsoft's Copilot coding assistant in 2021, he quickly saw the potential.
US, China debt pose risks for global public finances: IMF
THE WORLD's TWO great economic rivals, China and the US, will drive much of the increase in global public debt over the next five years, with US spending creating trouble for many other countries by keeping interest rates high, officials at the International Monetary Fund said in a report.
Language models in consumer tech
This move is designed to ensure better user experience & privacy
'Data centres' energy use doubles every four years'
Data centres are significant energy consumers, using about 2% of the world's power and emitting carbon dioxide equivalent to the airline industry.
Vi FPO: Foreign players invest big; about ₹5,400 crore raised
GQG, Fidelity buy almost 40% of the anchor investor portion
