Blinkit’s performance in Zomato’s Q2 results has piqued investor interest in quick commerce. Is the profit-over-expansion model sustainable?
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Being the first off the blocks, having zero baggage in the food delivery business and the convenience of a single app combined to help the Zepto arm hit the 75,000 orders-a-day milestone.
Quick-commerce burn is Swiggy’s Achilles heel. It is unlikely the company can burn its way through to market leadership or defend its share. Unless Blinkit or Zepto make a mistake.
With the food delivery business at a near standstill, Zomato needs its quick commerce arm to best the competition—no easy task when the top three players are neck and neck and more look to join the race.