Financial services veteran and Kotak Mahindra founder Uday Kotak has voiced his concern regarding the growing trends of Quick Commerce (Q-Com), emphasising that it has become a serious threat to traditional retail stores.
He also predicted that it could become a "political issue".
Speaking at a CNBC TV18 event, Kotak highlighted the success of Quick commerce in India. "Q-Com has a challenge to the local retailer and it is a challenge which will come to the political front," he said.
Pertinent to note that Kotak's remarks follow the listing of grocery and food delivery major Swiggy in the market.
What is Quick Commerce?
As the name suggests, Quick commerce or Q-Com refers to the delivery of consumer items in 10-30 minutes. Apps like Blinkit, Zepto, Swiggy Instamart, and Flipkart Minutes are among the top quick commerce platforms in India.
According to the report by Datum Intelligence, quick commerce market size is expected to reach $40 billion by 2030, a jump from $6.1 billion in 2024.
"India yet to deliver global brands like Apple, Meta": Kotak
During the event, Uday Kotak said that India is a unique country in the world where quick service retail has succeeded, unlike in most other parts of the world where this model has not been as effective.
"This is a positive sign where Indian innovation is working on the ground and some of this value creation is indeed real and sustainable", he said, adding that India is yet to deliver consumer brands like Apple, Meta, Unilever etc which are a key feature in any developed country or region.
