Zepto CEO Aadit Palicha has made a bold claim that the quick commerce segment is poised to generate more jobs than what Indian Railways will create in the next two to three years.
Quick commerce to bring significant tax revenue
This statement comes in response to concerns that quick commerce platforms are hurting traditional kirana stores.
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According to a report by Moneycontrol, Palicha said that the quick commerce ecosystem is actually creating jobs and will bring in significant tax revenue for the country. He argued that the segment is well-positioned to create a large number of jobs, surpassing even the Indian Railways.
Aadit Palicha addresses claims by CAIT
Palicha also addressed allegations by the Confederation of All India Traders (CAIT) that quick commerce players were “killing” local mom and pop stores.
“The same Datum Intelligence report that CAIT quoted to try and prove that we are hurting kirana stores also shows $46 billion in added grocery and household essentials consumption between FY23 and FY24. Quick commerce was less than $5 billion in FY24. So if the incremental consumption growth was $46 billion but QC is only $5 billion, then where did the remaining $41 billion go? It went mostly to the kirana store! Their own data shows that it’s impossible for quick commerce to have caused kirana stores to shrink,” Palicha explained.
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Further, Palicha also rubbished concerns that Zepto was indulging in predatory pricing, claiming that only 0.2% of the units sold on the Zepto platform were below the cost price of the manufacturer in FY24. He argued that the platform’s approach to cutting out middlemen was yielding cost benefits to end consumers, which was deflationary for the Indian consumer.
Meanwhile, Zepto’s CEO comments come at a time when India’s quick commerce space is witnessing heightened competition, with players like Blinkit, Swiggy Instamart, and Flipkart Minutes vying for market share.
