India ki quick-commerce industry – jahan grocery aur daily essentials kuch hi minutes me deliver hote hain – ab ek turning point par hai. Recently conducted interview mein, CEO of Blinkit, Albinder Dhindsa, gave a warning that this sector has reached the bubble stage and can explode any moment.
According to Dhindsa, the expansion of the quick-commerce sector was quite substantial relying on heavy investor funding, discounts, and rapid expansion till now.
But now, cash burn has reached such a high level that it is becoming very difficult for many companies to survive in the long run. The competition in the industry has become so aggressive that the margins have almost disappeared.
They said that a major correction is coming in the sector – i.e. weak players will exit the market, some will merge companies and some will be forced to change their model drastically. Overall, Dhindsa made it clear that only growth for the sake of growth is no longer sustainable.
According to the Blinkit CEO, the upcoming months will define the future of quick-commerce. Only efficient, profit-focused models will survive, while the discount-heavy and loss-making players will be the first to feel the impact when the bubble bursts.
