Tag Archives: Zepto

Business News, Startup, Technology

Quick Commerce Shake-Up: Blinkit and Zepto Revise Fees – Details Inside

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The quick commerce industry in India is witnessing strategic shifts as leading platforms Blinkit and Zepto adjust their commission structures to bolster revenue and edge closer to profitability. These changes come amid intensifying competition and escalating operational costs, prompting companies to reassess their financial strategies.​

Zepto’s Incremental Commission Increases

Zepto has been progressively raising the commissions charged to both users and brands. This strategy aims to enhance the company’s unit economics, a crucial factor as it prepares for an anticipated IPO later this year. The company’s take rate has risen to approximately 22-23% and is projected to increase further as it approaches an annualized gross sales run rate of $4 billion.

Blinkit’s Transition to a Variable Commission Model

Blinkit is set to implement a variable commission model starting March 13, 2025. Under the new structure, commission rates will be linked to the selling price of products within the same category. For instance, products priced below ₹500 will incur a 2% commission, those between ₹500 and ₹700 will be charged 6%, and items priced at or above ₹1,200 will attract an 18% commission. ​

Implications for the Quick Commerce Industry

The aggressive expansion of quick commerce platforms has led to increased cash burn, affecting investor sentiment and resulting in a decline in market capitalization for publicly listed companies like Zomato, Blinkit’s parent company, and Swiggy, which operates Instamart. Despite these challenges, both Blinkit and Zepto continue to pursue growth, with Zepto operating nearly 1,000 dark stores, matching Blinkit’s footprint.

Conclusion

The commission hikes by Blinkit and Zepto reflect a strategic effort to improve financial performance amid a competitive landscape. As these platforms adjust their business models, the quick commerce industry is poised for further evolution, with profitability and sustainable growth remaining central objectives.

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Technology

Will Amazon’s ‘Tez’ Redefine Quick Commerce in India? Explore the Details

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In a strategic move to capture a share of India’s burgeoning quick commerce market, Amazon is set to launch ‘Tez’, a service designed to provide rapid delivery of groceries and daily essentials. This initiative positions Amazon alongside competitors like Blinkit, Zepto, and Swiggy Instamart, all vying for dominance in the fast-paced delivery sector. ​

Amazon’s Foray into Quick Commerce

The quick commerce sector in India has experienced exponential growth, with gross sales reaching approximately $5.5-6 billion recently. Recognizing this potential, Amazon has expedited the launch of ‘Tez’, initially planned for the first quarter of 2025, now anticipated by late December or early next year. ​

Strategic Implementation of ‘Tez’

To ensure the success of ‘Tez’, Amazon is adopting a comprehensive approach that includes:​

Infrastructure Development: Establishing dark stores to facilitate swift inventory management and delivery processes.​

Product Focus: Prioritizing groceries and daily essentials to meet immediate consumer needs.​

Logistics Enhancement: Optimizing logistics networks to ensure timely deliveries.​

Additionally, Amazon is actively recruiting talent to support this high-priority project, reflecting its commitment to establishing a strong foothold in the quick commerce domain. ​

Competitive Landscape

Amazon’s entry into quick commerce intensifies competition with established players:​

Flipkart: Launched its ‘Minutes’ quick service before the festive season and has expanded to major cities.​

Tata Group: Through BigBasket’s shift to quick commerce and the introduction of ‘Neu Flash’ under the Tata Neu super app, Tata has significantly increased its market presence.

Zepto: Secured $350 million in funding, boosting its cash reserves to over $1 billion, indicating robust growth and investor confidence.​

These developments underscore the rapid evolution and competitiveness of India’s quick commerce sector. ​

Conclusion

Amazon’s impending launch of ‘Tez’ signifies its strategic intent to penetrate India’s quick commerce market, offering consumers expedited access to groceries and daily essentials. As ‘Tez’ prepares to compete with established services like Blinkit, Zepto, and Swiggy Instamart, consumers can anticipate enhanced convenience and more options in the realm of rapid delivery services.

Technology, Startup

How KiranaPro is Helping Local Stores Fight Back Against Quick Commerce Giants – Read More!

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In the rapidly evolving retail landscape, traditional neighborhood stores, known as kiranas, face intense competition from quick commerce giants like Blinkit, Zepto, and Swiggy Instamart. These platforms offer ultra-fast deliveries and a vast array of products, challenging the conventional business models of local retailers. Amidst this shift, KiranaPro emerges as a beacon of support, equipping kirana stores with the tools and technology needed to thrive in this new era.

The Rise of Quick Commerce and Its Impact on Kirana Stores

Quick commerce platforms have revolutionized consumer expectations by promising deliveries within minutes. Their competitive pricing, extensive product ranges, and convenience have led to a significant shift in customer preferences. As a result, many kirana stores have experienced a decline in sales and foot traffic, struggling to match the speed and efficiency of these well-funded competitors.

KiranaPro’s Mission: Digitizing the Local Retail Ecosystem

KiranaPro aims to bridge the technological gap between traditional retailers and modern consumers. By integrating local stores into the digital economy, KiranaPro ensures they remain relevant and competitive. Their approach focuses on several key areas:

1. Leveraging the ONDC Network

KiranaPro connects consumers with neighborhood businesses through the Open Network for Digital Commerce (ONDC). This integration allows local stores to reach a broader audience, enhancing their visibility and accessibility in the digital marketplace.

 

2. Implementing Voice-Based AI Models

Understanding the diverse linguistic landscape of India, KiranaPro employs voice-based AI models to facilitate seamless interactions between consumers and retailers. This technology enables customers to place orders using voice commands in their preferred language, making the shopping experience more inclusive and user-friendly.

3. Offering Flexible Revenue Models

To ensure profitability for store owners, KiranaPro provides flexible revenue options, including daily rates or per-lead fees. This approach allows retailers to choose a model that aligns with their business objectives and financial goals.

The Broader Movement: Digital Empowerment of Kirana Stores

KiranaPro’s efforts are part of a larger trend where traditional retailers are embracing technology to stay competitive:

Adoption of Digital Platforms: Many kirana stores are integrating with platforms like ONDC to expand their reach and offer online services.

Government and Organizational Support: The Federation of Retailer Association of India (FRAI) has urged the government to provide enhanced technology platforms to local stores, enabling them to compete on equal footing with quick commerce players.

Emphasis on Personalized Service: Despite technological advancements, the personal touch and trust that kirana stores offer remain unparalleled. By combining digital tools with their inherent strengths, these stores can offer a unique value proposition to consumers.

Conclusion

The retail sector is undergoing a transformative phase, with technology playing a pivotal role in shaping consumer behavior and business operations. Initiatives like KiranaPro are crucial in ensuring that traditional kirana stores not only survive but thrive amidst the rise of quick commerce giants. By embracing digital solutions and leveraging their unique strengths, local retailers can continue to be indispensable pillars of their communities.