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Uber Expands into India’s Quick Commerce Sector, Targets Kirana and Neighbourhood Stores

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In a strategic maneuver, Uber has entered India’s rapidly growing quick commerce market, capitalizing on its swift expansion plans. The focus lies on facilitating hyperlocal deliveries from Kirana and neighborhood stores, with an initial emphasis on prepaid orders.

Functioning as both a pickup and delivery service, Uber’s quick commerce venture aims to elevate customer convenience. Notably, users stand to benefit from store pickups, enabling them to select any store within serviced areas, share its location, and conduct direct payments, as confirmed by Uber India’s spokesperson.

Services launched in 9 metro cities of India

The service rollout spans nine major Indian cities, including Delhi-National Capital Region, Bengaluru, and Chennai, with intentions for broader adoption across diverse use cases beyond prepaid items. This strategic entry amplifies competition in the quick commerce arena, pitting Uber against established players like Flipkart, Rapido, and Porter, all vying for market supremacy.

Uber’s foray into quick commerce aligns with CEO Dara Khosrowshahi’s commitment to fortify the company’s foothold in India, despite the formidable market landscape. While Uber maintains its focus on expanding its two-wheeler and three-wheeler services in the country, its expansion into quick commerce reflects a calculated diversification strategy to meet the evolving demands of the Indian consumer base.

Moreover, with an estimated 1.2 crore Kirana stores across India, industry experts speculate that if Uber secures just 20 percent of this market segment, it could significantly disrupt the commerce sector and pose stiff competition to its rivals.