Blinkit, Zepto, Swiggy Instamart and Flipkart Quick are the major e-commerce companies in India. (Rep/Shutterstock)
Banker and founder of Kotak Mahindra Bank Uday Kotak has expressed concern over the growing influence of fast-paced commerce, saying it poses a significant threat to traditional retail stores.
The rapid growth of platforms like Blinkit, Zepto and Swiggy Instamart is disrupting Indian retail, Kotak warned, saying the issue could soon reach the political arena.
In an event hosted by CNBC TV18, Uday Kotak said, “Faster commerce is a challenge for local retailers, and this challenge may eventually become a political issue.”
It should be noted that Kotak’s statement comes at a time when Swiggy’s IPO has listed on the market at a 7% premium even in a weak market. Kotak has said that India has achieved success in the quick-service retail model, which has not been seen in other countries.
According to a report by Datum Intelligence, the rapid commerce market is expected to grow from $6.1 billion in 2024 to $40 billion by 2030.
Expedited commerce refers to a model in which ordered goods are delivered to customers within 10 to 30 minutes. Blinkit, Zepto, Swiggy Instamart and Flipkart Quick are the major e-commerce companies in India. Amidst this rapid growth of fast commerce, it will be important for the Indian retail industry to see how it tackles this challenge.
Uday Kotak appealed to Indian companies to build strong global brands like Apple, Meta and Unilever. Kotak also spoke about the dangers of excessive protectionism. He said this could affect long-term competitiveness. He stressed the need for an open trade environment and advised India to be prepared for potential capital inflows.