BigBasket embraces quick commerce, set to rival Blinkit, Zepto, Swiggy

Tata-owned BigBasket, India’s largest e-grocery platform known for its slotted deliveries, is poised to make a significant shift as it embraces the booming quick commerce model. The move comes in response to surging demand for rapid deliveries, which is increasingly blurring the lines between traditional e-grocery services and horizontal e-commerce platforms, reported The Economic Times.

Founded in 2011, BigBasket went through various iterations of the grocery delivery business over the past decade. However, the firm is now gearing up for a complete pivot to quick commerce, with its BB Now vertical leading the charge. Co-founders Hari Menon and Vipul Parekh told the business daily that BB Now, which currently accounts for over 50 per cent of the company’s sales, will soon be the sole focus of the platform. This transition is expected to be fully implemented within the next few weeks.

BigBasket’s focus on quick commerce

BB Now has been in operation for approximately two and a half years, but it is only in the last year that BigBasket has intensified its focus on the quick commerce segment. The shift comes as the market sees a surge in demand, driven by capital inflows into competitors such as Zomato-owned Blinkit, Zepto, and Swiggy Instamart.

Starting next month, BigBasket aims to generate $1 billion of its projected $1.5 billion in sales for this financial year through BB Now’s quick commerce services, sources told The Economic Times.

Earlier this year, BigBasket began experimenting with reduced delivery times, first offering two-hour delivery slots under its Supersaver service, with plans to reduce this to one hour. Now, with its full transition to quick commerce, the company is focused on retaining and expanding its user base through faster delivery options.

Expanding dark store network

BigBasket’s strategy involves the deployment of 500-600 dark stores nationwide, which will work alongside its large warehouses. These warehouses, which number between 56 and 60 across India, will continue to store a broad range of stock-keeping units (SKUs), including high-value items like large appliances.

The company plans to link clusters of dark stores with these warehouses to streamline the delivery of both popular grocery items and non-grocery products. While quick commerce has primarily been a metro-city phenomenon, BigBasket’s founders acknowledge that its success beyond India’s top cities remains uncertain.

 

Facing profitability hurdles

Expanding the range of products available for quick delivery presents challenges, particularly regarding profitability. However, as Parekh noted, the lines between e-commerce and quick commerce are rapidly converging, with capital infusions leading to price reductions across various categories.

Competitors like Zepto, which recently secured $1 billion in funding, are also expanding their SKU range to meet growing demand during the festive season. BB Now, currently offering 10,000 SKUs, plans to increase this number to between 25,000 and 30,000 in the near future.

Despite the rapid growth of quick commerce, challenges remain, particularly in profitability. However, industry insiders recognise that the momentum is too significant to ignore, as more consumers adopt faster delivery options.

Flipkart joins the quick commerce race

Meanwhile, Flipkart, a recent entrant into the quick commerce space, is expanding its ‘Minutes’ service to key cities like New Delhi and Mumbai, after its initial launch in Bengaluru. Flipkart’s quick commerce offerings include a broader range of products typically found on traditional e-commerce platforms, such as smartphones and laptops.

As competition intensifies, both Blinkit and Zepto have announced plans to increase their dark store networks significantly. Swiggy Instamart is also looking to expand its presence, engaging with real estate consultancies to add more dark stores across major markets.