Fast commerce is eating up grocery stores and could become a political issue: Uday Kotak

Last update:November 18, 2024, 2:27 p.m. IST

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

Banker and founder of Kotak Mahindra Bank, Uday Kotak, expressed concern over the growing influence of fast commerce, saying it was becoming a significant threat to traditional retail stores.

The rapid growth of platforms like Blinkit, Zepto and Swiggy Instamart is disrupting Indian retail, Kotak said as he warned that this issue could soon reach political forums.

At an event organized by CNBC TV18, Uday Kotak said, “Fast trade is a challenge for local retailers, and this challenge can eventually become a political issue. »

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

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

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

Uday Kotak called on Indian companies to create strong global brands like Apple, Meta and Unilever. Kotak also spoke of the dangers of excessive protectionism. According to him, this could affect competitiveness in the long term. He advised India to prepare for possible capital outflows, emphasizing the need for an open business environment.