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UBS analyst says 10-minute delivery race is over
The Hindu BusinessLine··11 Sept
UBS analyst Navin Killa said Indian online retail's fight is no longer 10 to 15 minute delivery. He called that speed a hygiene factor. Platforms now compete on assortment and wallet share across categories. UBS pegs India's online retail market at about $80 billion and sees it near $200 billion by FY31. Metros still dominate demand.
Prism
What It Means For You
- Killa said consumers may keep several apps, but usually rely on one primary platform for most purchases.
- He argued platforms will not grow wallet share by selling only the same grocery basket repeatedly.
- He pointed to Amazon and Flipkart entering rapid delivery as evidence that e-commerce and quick commerce lines are blurring.
What's Happening
- Killa said quick commerce growth is about 40-45 percent, traditional e-commerce 10-15 percent, and value commerce 25-30 percent.
- He described a continuum from sub-60-minute deliveries to five-to-seven-day value shipping.
- He said India's online penetration remains near 10 percent of total retail sales.
How Killa Frames The Market
- Killa is UBS's telecom, media and internet analyst covering the consumer internet sector.
- He said the phrase quick commerce itself is incorrect because the segment is part of overall e-commerce.
- He expects specialised dark stores for groceries, pharmacy, gourmet goods and later electronics.
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