Swiggy, Flipkart, Zepto Drop ‘10-Minute’ Delivery Tag Following Govt Directive
Quick-commerce firms drop “10-minute” delivery branding after government directive, amid concerns over rider safety, labour practices and growing regulatory scrutiny of the fast-growing sector.
New Delhi: After Blinkit, other quick commerce firms Swiggy, Flipkart and IPO-bound Zepto have also altered the branding of their rapid delivery services, moving away from explicitly marketing them as “10-minute” deliveries following a government directive. It is expected that others will follow suit soon, the sources said on Wednesday.
Despite the branding shift, competition in India’s quick-commerce space remains intense across the country, with companies investing billions to expand dark store networks as urban consumers increasingly opt for ultra-fast delivery of items ranging from groceries to electronics.
On Tuesday, the government had instructed Eternal’s Blinkit, Zepto and Swiggy and other e-commerce app sellers to stop promoting grocery deliveries under the ‘10-minute’ promise. The move comes amid concerns over rider safety and labour practices, with fears that strict delivery timelines encourage rash driving and penalise workers for delays.
However, the sources said that low paid gig workers have dogged the sector, while riders’ rash driving to reach customers on time raises safety concerns in their life. “As the quick commerce firms are darlings of foreign investors, the labour ministry was forced to ask some companies to stop using the “10-minute” branding. It was not clear if there would be any penalties for non-compliance therein,” the sources said.
According to data from Datum Intelligence, India’s quick-commerce sector, currently valued at about $11.5 billion within five years, has faced growing scrutiny. It is, however, noted that the move of the government may be a major setback for the quick commerce sector, but the government is keeping an eye for the benefit of both gig workers and customers in terms of riders’ safety and allowing apps to deliver groceries and electronics for customers’ satisfaction.
Madhusudan SahooNew Delhi, Jan 14After Blinkit, other quick commerce firms Swiggy, Flipkart and IPO-bound Zepto have also altered the branding of their rapid delivery services, moving away from explicitly marketing them as “10-minute” deliveries following a government directive. It is expected that others will follow suit soon, the sources said on Wednesday.
Despite the branding shift, competition in India’s quick-commerce space remains intense across the country, with companies investing billions to expand dark store networks as urban consumers increasingly opt for ultra-fast delivery of items ranging from groceries to electronics.On Tuesday, the government had instructed Eternal’s Blinkit, Zepto and Swiggy and other e-commerce app sellers to stop promoting grocery deliveries under the ‘10-minute’ promise. The move comes amid concerns over rider safety and labour practices, with fears that strict delivery timelines encourage rash driving and penalise workers for delays.
However, the sources said that low paid gig workers have dogged the sector, while riders’ rash driving to reach customers on time raises safety concerns in their life. “As the quick commerce firms are darlings of foreign investors, the labour ministry was forced to ask some companies to stop using the “10-minute” branding. It was not clear if there would be any penalties for non-compliance therein,” the sources said.
According to data from Datum Intelligence, India’s quick-commerce sector, currently valued at about $11.5 billion within five years, has faced growing scrutiny. It is, however, noted that the move of the government may be a major setback for the quick commerce sector, but the government is keeping an eye for the benefit of both gig workers and customers in terms of riders’ safety and allowing apps to deliver groceries and electronics for customers’ satisfaction.