India’s government has ordered Blinkit, Zepto and Swiggy to stop promoting their grocery deliveries as a “10-minute” service, two sources said, in a setback for a sector that has changed the way Indians in cities shop and is sought after by investors.
Fears of rash driving by riders and low pay for not completing orders within 10 minutes have dogged the so-called “quick commerce” sector that today is worth some $11.5 billion, data from Datum Intelligence shows.
The labour ministry raised the issue during a closed-door meeting on Saturday with representatives from the three companies, asking them to stop promoting the business as a 10-minute service, the sources added, declining to be named as the gathering was confidential.
Eternal’s Blinkit did not respond to Reuters queries. IPO-bound Zepto and Swiggy declined to comment. The labour ministry did not immediately respond to a request for comment.
The companies’ quick commerce shopping apps allow urban shoppers to get groceries, and even many electronics and household items within minutes.
The industry has attracted billions of dollars in investment. Swiggy raised $1.11 billion in December from institutional investors, including BlackRock, Temasek, and Fidelity.
Blinkit now describes its offering as “Groceries & more”, instead of “Grocery in 10 minutes” earlier, according to the internet archive website Wayback Machine.
However, Tata’s BigBasket, Zepto and Swiggy’s Instamart all continued to promote their business offering as a “10-minute” service on the Apple App Store on Tuesday.
Reuters
