Qcomm fires up discounts with rivals getting quicker
This month, average discounts across categories rose to 20–25% on maximum retail price compared to below 10% two years ago across various quick commerce platforms, including for segments like dairy and groceries, the sources said."Rising competition is the reason for increasing discounts within quick commerce, today there are eight players," Karan Taurani, executive vice president at Elara Capital. 'Today there are eight players, unless we see a convergence towards four-five players, this kind of discounting will persist. We had only 3-4 players earlier but now we are seeing the entry of more players including Flipkart and Amazon…I think discounting will persist for some time until the competitive intensity cools off,' Taurani added.
In addition to market leaders Blinkit, Zepto and Swiggy's Instamart, others such as Reliance Retail's JioMart, Flipkart Minutes and Amazon Now have also started building a presence in this space.
Analysts are of the view that discounts are the highest in the personal care category rising to around 35% discounts on maximum retail price. Other products such as packaged foods, basic staples, home care, beverages also are discounted heavily. 'Dairy has the lowest discount (5%), understandable given it is a lowmargin category and hence, there is limited headroom. Prices vary significantly across players in fresh fruits & vegetables too, albeit we do not include it in our basket due to potential variations in product quality,' said a note by Jefferies.
Accelerated spending Industry executives point out that with all competing firms being well-capitalised they are not focusing on profitability in the short term.
ET had reported in February that the monthly burn for the quick commerce sector across companies had increased to Rs 1,300-1,500 crore – more than doubling in a few months. Burn refers to the rate at which a company spends cash. For the quarter ended March 31, Blinkit parent Eternal saw its net profit plummeting to Rs 39 crore from Rs 175 crore in the year ago period. Its Bengalurubased rival Swiggy's net loss for the quarter nearly doubled to Rs 1,081 crore. Both the companies increased spending on expanding their quick commerce businesses. 'There is a massive headroom for growth in quick commerce…and the overall market is expanding as well. The attempt right now is to build a sticky customer base. A lot of effort is also going into building for tier-II and tier-III cities, where platforms are trying to get consumers to try quick commerce for the first time,' a senior quick commerce executive said.Brokerage firm Morgan Stanley estimates the size of India's quick commerce sector at $8 billion in 2024, estimating it to expand to $28 billion by 2026 and $57 billion by 2030.
Rapid expansion
Walmart-owned Flipkart's Minutes, which currently has around 400 dark stores aims to expand its network to 800 micro warehouses for 10-minute deliveries by the end of this year. ET reported on June 13 that Amazon Now has gone live in select pincodes in Bengaluru with 10-15 dark stores on its network, and aims to expand to other cities such as Mumbai and Delhi-NCR as well. Early movers Blinkit, Zepto and Instamart are also expanding their footprint.Notably, during the company's quarterly earnings call in May, Akshant Goyal, CFO of Blinkit's parent Eternal, said the quick commerce platform will prioritise market share gain even at the cost of short-term profitability.As per the Jefferies report, average discounts were also higher on bulk-buy offerings from companies like Zepto and Instamart, which operate the Super Saver and Maxxsaver programmes, respectively. Under these offerings, platforms offer greater discounts to users with larger basket sizes – typically over Rs 1,000. For the 10-minute delivery platforms, this results in cost savings in terms of fewer trips and reduced packaging expenses, while also increasing competitiveness with value retailers such as Dmart.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
7 minutes ago
- India.com
Bad news for Ratan Tata's TCS after massive layoffs, IT giant loses Rs 5.66 lakh crore due to..., worst phase for company since...
TCS is undergoing its worst crisis since the 2008 recession. (File) TCS market cap: Amidst the backdrop of the controversy surrounding its decision to cut more than 12,000 jobs in the current fiscal year, Tata Consultancy Services (TCS), India's largest IT services exporter, has witnessed a rout of its market cap, which slumped from Rs 16.57 lakh crore to Rs 10.93 lakh crore, a decrease of Rs 5.66 lakh crore. According to market analysts, TCS, the flagship company of the Tata Group, is going through it worst crisis since the 2008 recession, when it shares had fallen by 55 percent. TCS share prices have dipped 25 percent in 2025, and experts predict the current financial could be the worst in company's history if the downfall continues. Why TCS shares are falling? According to analysts, India's stock market has witnessed a turmoil over the past few months as foreign investors are withdrawing from the market in droves amid US President Donald Trump unleashing tariff war against India, and recently announcing 50% import duty on Indian exports. The IT industry, once considered a favorite for FIIs, is now witnessing a decline, with foreign investors reducing their stake in TCS from 12.35% in June 2024 to 11.48% in June 2025, which has resulted in the company's shares falling by over 25 percent in the current financial year. The Nifty IT index has fallen 25% so far this year, making it the worst-performing sector in the market as over half of the Rs 95,600 crore withdrawn from India by FIIs till July 2025 has come from IT stocks alone. Why mutual funds investment increased? Meanwhile, domestic mutual funds have raised their stake in TCS from 4.25% to 5.13%, making fresh purchases worth Rs 400 crore in the company, according to data. TCS' trailing PE declined from 41x to 20x, five-year CAGR stands at 8.5%, while stock CAGR is 6%, the data showed. Notably, India's IT sector has grown at a compounded annual rate of 12.5% over the last two decades, but has underperformed the Nifty over the last three to five years. TCS layoffs According to recent media reports, TCS is mulling to cut about 2 percent of its global workforce, which would result in over 12,000 TCS workers losing their jobs in the current financial year. The company's decision is being investigated, with Jefferies warning that TCS layoffs could result in a slowdown in execution in the near term and an increase in the workforce in the long term.
Time of India
35 minutes ago
- Time of India
Goa's idol makers battle PoP threat ahead of festivities
Panaji: As Ganesh Chaturthi nears and concerns rise over market penetration of Plaster of Paris (PoP) idols, the Goa Handicrafts Rural and Small Scale Industries Development Corporation (GHRSSIDC) has begun surveying markets to prevent the sale of PoP idols. Over the last four years, the number of registered traditional idol makers rose from 367 to 475, said GHRSSIDC managing director Damodar Morajkar. Despite the corporation's subsidy scheme, traditional idol makers struggle with rising costs, insufficient aid, and labour shortages. Morajkar said the survey to identify PoP idol sales began on Aug 8, and so far, GHRSSIDC's inspection has flagged none. He said that the inspection will continue until Aug 24. 'Local mud clay idols are the customer's first choice, due to our awareness campaigns. The Shadu Mati and coconut fibre idols from Maharashtra are also in demand, but not as much as the local clay ones,' Morajkar told TOI . GHRSSIDC offers a subsidy of Rs 250 per idol for up to 250 idols to the local idol makers. As of July 2025, GHRSSIDC received 367 local vendor applications for registration. In 2024, 475 vendors received subsidies totalling Rs 90.5 lakh on the sale of 45,248 idols, Morajkar said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Redefine Your Future with a Top Online MBA SRM Online Enquire Now Undo Pernem, Sattari, and Bicholim talukas have the highest concentration of traditional Ganesh idol makers in Goa. 'Earlier, we used to get the Chikal Mati at Rs 20,000 for a 10m truck. Now, the prices have risen to Rs 25,000,' said Bicholim sculptor Durgaram Shet. Shet said long travel for vendors to get mud is making sourcing difficult for some sculptors. Local artisans allege the PoP idol ban is not strictly enforced. The clay idols are heavier, with rich colours being another distinguishing feature. Umakant Poke, a third-generation sculptor from Morjim, Pernem, said that because certain vendors sell PoP idols, local sculptors catch negative attention from handicraft officials. 'They think we are selling PoP idols. We are hard-working people, and trying to earn money with our honest efforts,' Poke said. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
Time of India
36 minutes ago
- Time of India
HC order paves way for disabled bank staffer's promotion after 5 yrs
1 2 Kolkata: Calcutta High Court has directed a public sector bank to give a physically disabled man working with the bank his promotion within 45 days, which was held back for nearly five years. It also directed the bank to give him a posting in Kolkata where he can have a support system. However, the division bench of justices Sujoy Paul and Smita Das De on Aug 14 directed that he would not get arrears of pay from the date of his restoration of promotion but his seniority and pay would be made on the basis of the post where he has been promoted. Anirban Pal joined the bank in 2005. In 2015, he met with an accident, resulting in 70% disability. In 2016, Pal did not participate in the promotion process (from Scale-III officer to Scale-IV) fearing transfer from Kolkata, but when he saw his two other colleagues with physical disabilities getting promoted without transfer, he applied. In Oct 2018, he was promoted but transferred to Patna. He approached the bank stating that in the absence of family support, it would be difficult for him to perform his duties and take care of himself in Patna. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Could This NEW Collagen Blend Finally Reduce Your Cellulite? Vitauthority Learn More Undo His performance in Kolkata was good. The posts were lying vacant wherein he could have been accommodated. You Can Also Check: Kolkata AQI | Weather in Kolkata | Bank Holidays in Kolkata | Public Holidays in Kolkata | Gold Rates Today in Kolkata | Silver Rates Today in Kolkata In 2018, while the bank was asked to reconsider Pal's claim and file a report, he simultaneously preferred representations seeking reversion, which was accepted by the bank, "making it clear that it is irrevocable and entails the debar for promotion for a period of 2 years". In 2020, his request for restoration of the promotion was rejected. H is matter came up before a single judge who dismissed the case, considering Pal approached in 2023 with a delay of three years and imposed a cost of Rs 3 lakh on the bank for disclosing details. Pal's counsel, Srijib Chakraborty, argued that March 15, 2020, to Feb 28, 2022, was a Covid period, wherein the SC also said that the period in between would not be counted for the purpose of counting limitation in any proceeding. The division bench accepted the reason for delay given by Pal's advocate, setting aside the order of the single judge. "The petitioner had a preferential right to be posted in Kolkata in view of the binding policy of the Department. A suitable and meritorious officer was not posted at Kolkata for reasons best known to the Department. No justifiable reason was spelt out in not posting the petitioner on promotion at Kolkata despite the mandate ingrained in the guidelines..." the HC held. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
