Tata Group is set to enter the quick commerce market with its new initiative, Neu Flash, an extension of its e-commerce platform, Tata Neu. This venture aims to rival established players like Zomato‘s Blinkit, Swiggy’s Instamart, and Zepto, who currently dominate the sector.
Neu Flash will initially be available to select users and will offer a range of products across categories, including groceries, electronics, and fashion, over the coming weeks. The grocery segment will be supported by BigBasket, while electronics will be provided through Croma, and Tata Cliq will cater to fashion and lifestyle products.
Tata’s entry follows similar moves by competitors, including Flipkart, which recently launched its quick delivery service named ‘Minutes,’ and Reliance JioMart, which is re-testing its service after previously halting its 90-minute delivery option. Currently, Blinkit, Instamart, and Zepto collectively hold approximately 85% of the quick commerce market, highlighting the intense competition as this sector expands more rapidly than traditional e-commerce.
In a related development, Zepto is in the process of raising $150 million from local investors, adding to the $1 billion it secured within the last two months. This fundraising effort underscores the competitive pressure on Blinkit, which commands around 40% of the market share.
Additionally, Tata’s e-pharmacy, 1mg, known for delivering medicines within hours in select areas of Delhi-NCR, is expected to integrate with Neu Flash, further enhancing its service offerings.
With Neu Flash, Tata aims to carve out a significant presence in the burgeoning quick commerce landscape, joining other major players in this fast-evolving retail segment.
