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Tata to enter quick commerce space with ‘Neu Flash’: Report

in Blog
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Click, cover, conquer: Tata Neu delivers Tata AIA life insurance in just three clicks

Athira Sethu

Kochi, 28 October 2024

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The Tata Group is launching a new service called Neu Flash, targeting the space of fast shopping in urban markets by offering quick delivery. Like Flipkart and Reliance Industries, Tata’s Neu Flash is to offer speedy grocery, electronic, and fashion item deliveries to select customers, said a report in the Economic Times.

Grocery delivery will be in conjunction with BigBasket. BigBasket is shifting completely to the model of quick delivery. Electronics will be taken care of by Croma, and fashion/lifestyle offerings by Tata Cliq, the report said.

The move is part of Tata’s strategy to attract online shoppers. Currently, the market for quick commerce is dominated by Blinkit, Swiggy Instamart, and Zepto, which account for more than 85% of the market share. Flipkart has its own similar service called “Minutes,” while Reliance JioMart is reviving its quick delivery options after having stopped offering them earlier.

Recent reports are indicating the quick commerce space is moving ahead faster than regular kirana stores. For this reason, many organizations are stretching out their delivery options into various products delivery within the timeframe of just 10 to 20 minutes.

Reports also indicate that Tata Cliq would soon be available on BigBasket and Neu Flash as the Tata Group is further strengthening its strategic partnerships for value addition.

1mg, the epharmacy of Tata, has also started delivering some medicines quickly in locations such as Delhi NCR, though it hasn’t integrated completely with Neu Flash. Some daily essentials are available for delivery in just 10 minutes. Tata could also use its retail stores to enable rapid deliveries in some locations.

Industry experts say there’s a massive demand for quick commerce across metropolitan areas as customers pay owing to convenience. BigBasket’s BB Now fees vary depending on order size and Blinkit and Swiggy introduced lower free deliveries.

With the growth of the quick commerce industry, companies also realize growing demand for fashion items. Blinkit has already started offering return facilities for fashion products. It is therefore now possible to shop quick and return the same products easily for the customers. Analysts estimate that quick commerce will rapidly grow in the coming years more so in major cities since growing customers opt for the same service.

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