The Central Consumer Protection Authority (CCPA) has reportedly directed quick commerce players Blinkit, Swiggy Instamart, Zepto, and Big Basket (BB Now) to provide evidence supporting their assertions of ’10 minute’ delivery.
As per a Moneycontrol report, the CCPA, established under the Consumer Protection Act of 2019, has requested the mentioned companies to disclose median data regarding delivery times in prominent cities such as Bengaluru, Mumbai, Delhi, Kolkata, and Chennai.
Queries directed towards Blinkit, Swiggy Instamart, BBNow, and Zepto regarding this development remained unanswered at the time of this story’s publication.
The four startups mentioned above heavily promote the prospect of “10-minute deliveries” in their brand messaging, albeit subject to terms and conditions.
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In their March 2023 publication, “Swiggy Diaries,” Swiggy Instamart claimed that the app could serve food in “less than 20 minutes on a busy day and no more than 10 on a normal one.”
Currently operating in more than 25 cities, Instamart is strategically focusing on its forthcoming initial public offering (IPO), prompting Swiggy to refine and bolster its quick commerce vertical. Notably, Swiggy recently merged Swiggy Mall, offering a diverse selection of non-grocery items such as footwear and electronics, with Instamart.
Meanwhile, according to Blinkit’s website, delivery times can be as short as 10 minutes “during all times the store in your area is operational”. It’s worth noting that Zomato‘s quick commerce vertical has significantly impacted the fortunes of the listed company. Blinkit reported a revenue of INR 644 Cr in Q3 FY24, compared to INR 301 Cr in the year-ago quarter and INR 505 Cr in Q2 FY24.
Meanwhile, Tata-backed BigBasket entered the quick commerce scene in April 2022. The company claims to serve over 10 million customers with grocery deliveries within 10 minutes, although its services are presently limited to select cities.
For Zepto, the commitment to 10-minute delivery comes with certain conditions. Recently, the company launched Zepto Pass, a membership program that provides unlimited deliveries for a monthly fee. Additionally, it introduced a platform fee of INR 2 per order for its users.
The Moneycontrol report also quoted a senior government official who stated that the companies are not currently required to modify their messaging. However, if their median delivery times diverge significantly from their claims, they will be requested to adjust their advertisements accordingly.
A CCPA official told the publication, “We’re fine if the median delivery timeline even stretches up to 14 minutes from 10 minutes, but any delay exceeding that buffer will mean firms have to change their advertising message.”
These developments come at a time when the competition in the quick commerce space is intensifying. With an eye on a slice of the burgeoning market, ecommerce major Flipkart has also been gearing up to enter the space. Recently, reports surfaced indicating Flipkart’s interest in acquiring a major stake in Zepto. However, the deal failed to materialize.
Continue Exploring: Flipkart challenges Zepto and Blinkit with quick commerce expansion
However, the company has been strengthening its leadership for its quick commerce vertical. Recently, it appointed senior VP Hemant Badri to lead its expansion into the fast-growing space.
Continue Exploring: Flipkart taps supply chain head Hemant Badri to spearhead quick commerce expansion
