The Reserve Bank of India (RBI) has said that quick commerce and ecommerce are driving private consumption in the country.
“Private final consumption is the brightening spot in the economy, driven by ecommerce and q-commerce,” the central bank said in its monthly bulletin.
The central bank added that “it is important to foster competition rather than being restrictive” in the segments.
However, in the same breath, the RBI noted that the demand for household staples saw a modest rise in the October-December quarter. According to the RBI, the middle class, especially in the urban areas, is pinning hopes on relief from food inflation for higher disposable incomes.
The central bank suggested that one way to revive the animal spirits in the economy is by providing a consumption boost.
Meanwhile, the RBI said that the rural segment of the country is expected to continue to record strong volume growth.
It is pertinent to note that the RBI, in November last year, said that rural India emerged as a goldmine for ecommerce platforms in the festive season.
The development comes at a time when quick commerce has emerged as the next battleground in the ecommerce space. Zomato’s Blinkit, Swiggy’s Instamart, and Zepto are among the major players in the space. The trio cumulatively reported over $1 Bn in revenue in FY24.
However, ecommerce giants Flipkart and Amazon have also entered the space with their offerings. Besides, there are JioMart and BigBasket who are also seeking a share of the pie.
While quick commerce started with grocery deliveries, the food delivery space is also seeing a rise in the number of companies offering 10-15 minute deliveries.
While Zomato has launched a 15-minute food delivery service and Blinkit’s Bistro, Swiggy has launched Bolt and SNACC for quick deliveries. Zepto has also launched its own standalone app named “Zepto Cafe” to offer similar services.
Besides, new players like Swish and Zing are also offering quick food delivery services.
The post Quick Commerce, Ecommerce Driving Increase In Consumption: RBI appeared first on Inc42 Media.
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