Quick Commerce

“If you think about something like quick commerce, it's prohibitively expensive there. Like, I think the cost of labor is very high. The distances that they have to cover are high. The rental costs for, you know, things like dark stores are very high. In India …”

“If you take the color off, you cannot differentiate one app over the other. So everybody was so obsessed with, like, delivery in 10 minutes, last minute app, and I'm here for your urgency.”

“Whether we really require everything in 10 minutes or not, but 30 minutes is a good number to go after.”

“I think quick commerce is the biggest innovation where, which had changed entire consumption pattern in India, especially the 10 minute delivery from dark stores.”

“I think that is a clear trend that the world has changed around us, and India is a unique market where this is happening because, ah, because customer expectations are high, And because of density and availability of, ah, labor force, it is just possible to do…”

“In India, I don't know. I don't know what the TAM is. I don't think it's much more than 50, sixty million people. If it's a large TAM. But not more.”

“I've never bought all of them are my friends, but I've never bought from quick commerce. I've never invested in a quick commerce.”

“When seven, eight players come into the foray, and they start unionizing, and they start asking for benefits at some point that cost to convenience math will get skewed and not for the better.”

“Today our quick commerce offering is processing twenty million order items on an annual basis in a very short time.”

“With quick commerce you can't automate that much because the cost of the automation doesn't bear out in a small box. So you have to use human labor the car. And so in markets where the cost of human labor and is not there and the concentration of customers isn…”

“And I think right now that's a big part of our business and long term is going to be more than 50% of our business. So larger than food for sure.”

“So for example, with logistic, it took a couple of years before we were broke even per order basis in, in, in logistic, same with DMART and the whole quick commerce. It took us a couple of years to be break even per order basis, but we didn't, it was not becau…”

“I feel like, unfortunately for us, it will very much stick around and dominate because If you look at the US, which I'm familiar with, people have been ordering groceries, let's say in the US online for like a decade now. But the behavior that they got used to…”

“Both, ah, personally, as a professional or as a management, ah, thinker, ah, and as part of, ah, Big Basket, ah, shareholder, this has caught us by complete surprise.”

“Lot of it driven by discount, but that'll, that has been keeping on, will reduce. But this is a change in consumer behavior phenomena, which has been, which has caught lot of us by surprise. But now it's here to stay. There is no, no, this one, No, no, no ques…”

“And the third factor which contributed is that we have the lowest manpower cost anywhere in the world. Even China is three X more expensive, right? In terms of cost per delivery, which is why quick commerce doesn't work even in China, because cost per delivery…”

“A dark store becomes profitable when you get a significant share of revenue on the dark store. From your catchment area, right? And your costs are therefore covered. Now, beyond a point, you have a catchment area. Retail store also has a catchment area. Beyond…”

“I think the market share part of it has now, at least in the most popular areas is sort of stabilized. Everybody's got their market share. Market share movements are going to be very hard to come by, but I think there is still a lot of scope in terms of what n…”

“Quick commerce is really transitioning to becoming horizontal commerce with high frequency categories as the lead player. So that gets the customer in, grocery gets the customer in, then you sell everything else.”

“In this particular case, we were actually pursuing an acquisition brilliantly for us and for that company. And we thought it was a done deal. And that cost us about six months, seven months. And if that had happened, it would have been a very different story t…”

“What Flipkart was offering in 2013 is a, is commoditized today. That next day delivery people, we are talking about quick commerce now, right?”

“So one of the reasons why you've seen me not invest in, you know, quick commerce or any of the delivery companies that were there, they, A, they didn't have unit economics. They still don't today. They're trying to do growth at all costs. I think that can make…”

“Today, if a DMART is being valued at what it is, right? I mean, I don't think it's outrageous to believe that, you know, the quick commerce market cap in India can go all the way up to say even, even a hundred billion dollars.”

“To give you the exact number, it would be like about today collectively .3% of grocery.”

“Nobody can profitably deliver every order in 10 minutes. It's not possible. The network of dark stores you'll have to set up to do that is not profitable. So you will never be able to build a good unit economics based on only 10 minutes, which means all orders…”

“So you will build a model which is within 30 minutes, right? Less than 30 minutes. There'll be some which will go up to 90 minutes. So 30 to 90 is the range you'll find. Less than 30, less than 90.”

“So these are the two strong use cases, and in my view, this will contribute to about 20 to 25% of the grocery buy, and that's it. Rest of it will continue to be planned and continue to be the way it's working”

“If we can get that to seven, eight percent, there's no reason why, you know you know, this business can't be close to a double digit EBITDA business, right? I think it's very possible in the long term.”

“Consumers will eventually, you know, their buying behaviors will shift. You know, they will want things instantly. They may not want everything instantly, but if, you know, if you're a brand with a hundred SKUs, they may want the top five, or you may want your…”

“I don't think it's going to be like a As many winners as you think it is, I think it's going to be a bit of a graveyard.”