Quick Commerce Eating Up Grocery Stores, May Become A Political Problem: Uday Kotak – News18

Last Updated:November 18, 2024, 14:27 IST

According to a Datum Intelligence report, the quick commerce market will grow from $6.1 billion in 2024 to $40 billion by 2030. Major players in the quick commerce market offer 10-30 minute deliveries

Banker and Kotak Mahindra Bank founder Uday Kotak has expressed concern over the growing influence of quick commerce, stating that it is becoming a significant threat to traditional retail stores.

The rapid growth of platforms like Blinkit, Zepto, and Swiggy Instamart is disrupting the Indian retail trade, Kotak said warning that this issue may soon reach political forums.

In an event organised by CNBC TV18, Uday Kotak said, “Quick commerce is a challenge for local retailers, and this challenge can eventually become a political problem.”

It should be noted that Kotak’s statement comes at a time when Swiggy’s IPO has been listed in the market at a 7% premium even in a weak market. Kotak has said that India has achieved success in the quick-service retail model, which has not been seen in other countries.

According to a report by Datum Intelligence, the quick commerce market is expected to grow from $6.1 billion in 2024 to $40 billion by 2030.

Quick commerce refers to a model in which the ordered goods are delivered to customers within 10 to 30 minutes. Blinkit, Zepto, Swiggy Instamart and Flipkart Quick are the major quick commerce companies in India. Amid this rapid growth of quick commerce, it will be important for the Indian retail industry to see how it faces this challenge.

Uday Kotak appealed to Indian companies to build strong global brands like Apple, Meta and Unilever. Kotak also spoke about the dangers of excessive protectionism. He said that this could affect long-term competitiveness. He advised India to be prepared for potential capital outflows, stressing the need for an open trade environment.