- | 6:52 pm
Tata may enter quick commerce race with Neu Flash: report
Tata Group may enter into the quick commerce segment with Neu Flash, offering groceries, electronics, and fashion items in minutes
After Flipkart and Reliance Industries have trained their focus on fast-expanding quick commerce segment, Tata Group is all set to enter into the quick commerce segment with Neu Flash, offering groceries, electronics, and fashion items to consumers in just few minutes, reported the Economic Times, quoting people who are aware of this matter.
Mumbai based salt-to-steel conglomerate is considering using BigBasket, Croma, and Tata Cliq to deliver groceries, electronics, mobile phones, and fashion and lifestyle products.
Mumbai-based conglomerate’s e-commerce venture Neu will enter into the ultra-fast delivery segment with Neu Flash.
Zomato-owned Blinkit, Swiggy Instamart, and Zepto are the key players in the quick commerce segment with over 85% share. Flipkart offers its rapid service called Minutes, and Reliance JioMart is considering launching a similar service.
According to Bernstein’s report, the quick commerce segment is outpacing growth in established retail chains like Reliance, Dmart, and Spencer Retail, and the fast delivery segment has the potential to disrupt both e-commerce and traditional retail. Using existing quick commerce options, consumers can deliver products to their doorstep in 10-20 minutes.
Quick commerce segment is currently witnessing neck-to-neck competition, with Blinkit controlling 40% of the market share and Zepto looking to spread its wings by raising $150 million in funds from domestic investors at a $1 billion valuation round in just two months after establishing itself as a critical competitor of Blinkit.
Tata Digital’s online grocery arm, BB, now follows a tiered fee model based on order size. Other players like Blinkit offer free delivery on orders above Rs199, and Swiggy has reduced its free delivery threshold to Rs99.