Zepto investor Paul Hudson expects quick
comm will challenge ecommerce business
Bengaluru: Flipkart is gearing up to enter the quick commerce space by offering a range of products in shorter delivery timelines in the next few months, people aware of the matter said. Flipkart’s move comes when quick commerce platforms Zepto, Blinkit and other sareex panding in to ecommerce territory. Meanwhile, Paul Hudson, founder of Glade Brook Capital that has backed Zeptoand Blinkit’s parent Zomato, on Thursday said in a note that quick commerce firms would be challenging ecommerce incumbents like Flipkart and Amazon in the near future. In a blog post, he said the Indian quick-commerce sector might see expansion into a much wider array of stock keeping units (SKUs), bringing it closer to ecommerce in the future. Flipkart is planning to launch a quick-commerce service in a few months, people cited above said.
The delivery timeline targeted by the firm and the number of cities it plans to launch the venture are not yet known. ET reported on March 4 that Blinkit and Zepto are fast entering ecommerce territory and are set to add several categories like fashion, beauty; electronics, toys, home and kitchen to their offerings. News portal Entrackr first report: ed on Flipkart's quick commerce plans. Over the next few months, Zepto and Blinkit will add thousands of new stock keeping units (SKUs), taking the number to over 10,000 as they see consumers making frequent purchases.
They have also tied up with apparel firms and sellers for listing of Indian quick commerce sector might see expansion into much wider array of SKUs, bringing it closer to ecommerce in the future brands including Adidas, Pepe Jeans, Jockey, Man-year, XYXX and Mad Over Print. Flipkart rolled out same day delivery of products across several categories at no extra cost from February It initially launched the benefit in 20 cities, including Delhi, Bengaluru, Guwahati and Ludhiana. Flipkart already runs quick hyperlocal delivery service for groceries called Flipkart Quick in few geographies, which allows for delivery of fruits and vegetables in about 90 minutes or in a two-hour timeslot.
“The longer-term investment thesis behind quick commerce extends beyond rapid delivery of grocery and daily needs products into a broader SKU assortment that penetrates many categories,” Hudson said in his blogpost. “The moonshot of delivering a wide assortment of SKUs rapidly — say in one hour — opens up the much broader ecommerce market to a superior | customer value proposition.” He said quick-commerce firms had found true product market fit in India. Operationally, these firms had also G been able to nail down aspects like SKU selection, supply chain management and procurement, dark store layouts, and soon.
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