Zepto, one of the fastest growing quick commerce platforms in India, is planning to tap into the potential of Gujarat. The leadership of the company is optimistic about the growth of the platform as the state has a discerning consumer practices and high tech adoption among the consumers.
Zepto is also planning to expand to Surat, Rajkot and Vadodara by the end of this year. Chandan Mendiratta, Chief Brand Officer, Zepto, said, “Zepto is very much focused on the sustainable practice in the business. We are excited to serve the diverse needs of Gujarat’s population while supporting local farmers and businesses through direct partnerships.”
It should be mentioned that the quick commerce market in India is one of the fastest growing segments in India. Led by players like Blinkit, Instamart and Zepto, the market segment grew at a rate of 230% between 2021-23.
According to a Statista report on Indian Q-Commerce, the segment’s revenue is expected to reach $ 8.8 billion by 2028. The current revenue of the segment is estimated to be at $ 3.3 billion in 2024 while the revenue in 2019 was just 6.24 million.
Commenting on the competition in the segment, Chandan told FE, “Ultimately, all the quick commerce business posits down to only one thingb- operational efficiency. Zepto is ahead of its competitors in the sense that we are building a system which eliminates the mediators from the supply chain. By directly working with farmers and original producers, Zepto provides a price advantage and convenience which will give way to a win-win situation for all including the producer, Zepto and the consumers.”
Commenting on the state specific expansion plans, he said, “We determine our expansion strategy based on the availability of demand in any area. Based on the current demand that we are receiving, Zepto is aiming to double the number of stores by March 2025 from the current 370 stores in 11+ cities including NCR Delhi.”
It may be recalled that recently, CCI (Competition Commission of India) criticised online commerce platforms for practising predatory prices and the All India Consumer Products Distributors Federation (AICPDF) has raised a number of issues regarding the economic viability of dark stores, predatory pricing, labour law violations and monopolistic tendencies among the quick commerce segment. Commenting on the issue, Chandan said, “We are trying to organise the previously unorganised market segment. We are focused on creating a win-win situation for all the stakeholders. Though we cannot say what strategy the authorities will formulate to regulate the industry, it will be beneficial for not only the Q-commerce industry but other industries with gig workforce like content writers and artists.”
It should also be mentioned that Zepto is having around seven lakh orders per day with a GMV of more than $ 1.5 billion. The platform offers more than 20,000 products with more than 50,000 delivery partners with an addition of more than 5,000 partners per month.
“Zepto is considerate towards its delivery partners and packers. In the absence of any social security code, PF and insurance for gig workers as of now, Zepto provides health and accidental insurance for our delivery partners. Furthermore, every store offers services for an average radius of two to four kms. This allows tha partners to drive at a comfortable speed of less than 40 KM per hour. The workers are being paid on a weekly basis while variables like efforts, terrain and weather are considered to determine a fair remuneration for these workers’, concluded Chandan.
From: financialexpress
Financial News
