{"id":29115,"date":"2024-04-17T22:40:21","date_gmt":"2024-04-17T22:40:21","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/17\/zepto-improves-quick-commerce-market-share-instamart-loses-ground-hsbc-report\/"},"modified":"2024-04-17T22:40:21","modified_gmt":"2024-04-17T22:40:21","slug":"zepto-improves-quick-commerce-market-share-instamart-loses-ground-hsbc-report","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/17\/zepto-improves-quick-commerce-market-share-instamart-loses-ground-hsbc-report\/","title":{"rendered":"Zepto improves quick-commerce market share; Instamart loses ground: HSBC report"},"content":{"rendered":"
\"Zepto<\/div>


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Zepto<\/a> has steadily increased its quick-commerce market share<\/a> at the cost of Swiggy Instamart<\/a> over the past two years, while market leader Blinkit<\/a> has grown its share to 40%, a report from HSBC Global Research said.<\/p>\n

The report, made in collaboration with Zepto\u2019s senior management, estimates that the company\u2019s market share rose from 15% in March 2022 to 28% in January 2024.<\/p>\n

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In the same duration, Instamart\u2019s market share fell from 52% in March 2022, when it was the largest player in the ecosystem, to 32% in January 2024. Blinkit\u2019s market share, on the other hand, rose from 32% to 40% during that period. <\/p>\n

Swiggy Instamart did not reply to a request for comment on the report.<\/p>\n

Blinkit, with about $2 billion in gross merchandise value (GMV) terms and set to double in 2024, is the market leader, the report said. Blinkit\u2019s margins at an earnings before interest, taxes, depreciation and ammortisation (ebitda) level are currently at -2%, and is expected to improve to 4-5% by FY27, it added.<\/p>\n

HSBC also raised the target price of Blinkit parent Zomato\u2019s shares to Rs 215 and rated it a \u2018buy\u2019 in the report dated April 9. Zomato<\/a> shares last closed at Rs 188.3 per share on the NSE.<\/p>\n

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Discover the stories of your interest<\/h3>\n<\/div>\n
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\u201cWe believe India is likely to graduate directly from unorganised retail (kirana stores) to QC (quick-commerce), while modern retail (MR) penetration will likely remain low. And at this stage the majority of value migration is from unorganised retail to QC, in our view. Importantly, this is driven by the fact that QC imitates most attributes of unorganised retail in India, unlike MR,\u201d the report added.<\/p>\n

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\"QuickETtech<\/span><\/figure>\n<\/div>\n

The report comes as all major quick-commerce<\/a> platforms expand their offerings, recording robust sales growth in non-grocery categories like beauty, toys, health and electronics, as ET had reported on April 12<\/a>. Around 15% of Zepto\u2019s $1.2- billion annualised gross sales currently comes from non-grocery products, said a Goldman Sachs report.<\/p>\n

Advertising earnings would also be crucial to the profitability of quick-commerce platforms, the HSBC report added.<\/p>\n

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\"RiseETtech<\/span><\/figure>\n<\/div>\n

\u201cEven when compared to ecommerce platforms like Flipkart<\/a> and Amazon<\/a>, QC is better placed to capture ad spend due to more favourable terms of the trade (take rate) for grocery vs non-grocery. We think advertising take rates (terms of the trade) are nearly 6-8% in the case of grocery compared with 1-2% for electronics, which is a big relative advantage for QC platforms vs other ecommerce platforms,\u201d it said.<\/div>\n


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Zepto has steadily increased its quick-commerce market share at the cost of Swiggy Instamart over the past two years, while market leader Blinkit has grown its share to 40%, a report from HSBC Global Research said. The report, made in collaboration with Zepto\u2019s senior management, estimates that the company\u2019s market share rose from 15% in […]<\/p>\n","protected":false},"author":2,"featured_media":29116,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/img.etimg.com\/photo\/88591548.cms","fifu_image_alt":"","footnotes":""},"categories":[607],"tags":[3865,3668,3578,9290,15954,15801,14691,7343,1602,33542,11942,14689,61,1932,14687,14688,4206],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/29115"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=29115"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/29115\/revisions"}],"predecessor-version":[{"id":29117,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/29115\/revisions\/29117"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/29116"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=29115"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=29115"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=29115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}