BENGALURU: After Flipkart, ecommerce giant Amazon is reportedly planning to enter quick commerce space soon, which is dominated by Zomato-owned Blinkit, Swiggy Instamart and Zepto.
Flipkart recently entered the space with ‘Minutes’ service. According to reports, ecommerce platform BigBasket is also planning to enter the quick commerce space as there has been demand for quick deliveries.
When asked Amazon about its plans, its spokesperson said, “We don’t comment on speculations”.
Ratna Mehta, chief executive officer and Managing Partner, Fundalogical Ventures, told this newspaper that as customer preferences change, market places as well as brands are seriously thinking about quick commerce.
A couple of years ago, many venture capitalists were questioning the quick commerce model, but the view has been changing now.
“Blinkit has shaped up its business with a sharp focus on operations, flawless customer service and eye on profitability. They are proving that quick commerce can become profitable,” he said.
As players such as Amazon and Flipkart are planning to enter, it will be interesting to see this space in the next two-three years, he added.
Redseer predicts a 40-45% GMV CAGR for q-commerce in the next 3 years. “The average monthly transacting users of quick commerce still stand at 1/3rd of online food delivery and 1/4th of online mobility, thereby leaving headroom for growth, given the high consumer overlap with these sectors,” it recently said.
Union Minister of Commerce and Industry Piyush Goyal on August 22 came down heavily on Amazon alleging that it is practicing predatory prices. However later in the day, he said the government is not against e-commerce and only wants fair competition between online and offline businesses.