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Hi readers,
I recently took up baking to beat the pandemic blues. While it has been relaxing, the most difficult part was gathering the ingredients – it always seemed like I was missing a few.
A few weeks ago, I came across an app that promised grocery deliveries within 10 minutes. I hadn’t even decided whether to bake a cake or just some muffins when the doorbell rang, and voila! My ingredients had arrived.
The super-quick service was impressive and piqued my interest as a financial journalist to figure out how the model really worked.
While experts questioned quick commerce’s economic viability, they all agreed that the service was undeniably attractive to consumers. The experts have tracked the evolution of the model and incorporated bits of it into their own businesses to avoid FOMO.
It’s also worth noting that the quick commerce delivery model has not yet found its feet in the US. In contrast, when we crunched the numbers, we found that Zepto, an Indian 10-minute delivery startup that came out of stealth mode in November 2021, is close to breaking even.
While the figures are promising, the impact of the model on delivery staff can be alarming in some cases. Apart from a swathe of challenges they face in India, delivery personnel have highlighted complaints from customers for being even two minutes late on an order.
This short delivery window also forces drivers to tread India’s pothole-riddled roads at dangerously high speeds.
The model is still in its infancy in India, and we’ll have to wait and watch how it can be improved. For now, the big question remains whether these startups can balance convenience, economic viability, and driver safety.
— Deepti Sri, journalist at Tech in Asia
Top stories this week
Image credit: Timmy Loen
1️. Will India’s 10-minute quick commerce model last?
The 10-minute delivery model is taking India’s ecommerce industry by storm. But is it viable in the long term?
2. Indonesia’s personal finance apps see new tailwinds – and VC funding
After the rise of BukuKas and BukuWarung, some startups are hoping to follow the same trajectory by putting a consumer spin on the two firms’ B2B products.
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