Quick Commerce Spree Threatens Traditional Retail: Uday Kotak Alarms Politicians with His Words

Mumbai: The meteoric rise of quick commerce companies in India is creating a stir in the retail sector, and banker Uday Kotak has warned that this challenge may soon escalate into a full-blown political problem. According to Kotak, the rapid growth of platforms like Blinkit, Zepto, Swiggy Instamart, and Flipkart Quick is putting local retailers at risk.

Speaking at a CNBC TV18 event, Kotak stated, "Quick commerce is a challenge for local retailers, and this challenge can eventually become a political problem." His warning comes at a time when Swiggy's initial public offering (IPO) has been listed in the market at a 7% premium, even in a weak market. Kotak highlighted that India's success in the quick-service retail model is unmatched globally.

The burgeoning quick commerce market is expected to soar to $40 billion by 2030, up from $6.1 billion in 2024, according to a Datum Intelligence report. This rapid expansion has major players offering customers lightning-fast deliveries within 10-30 minutes.

Kotak believes that Indian companies must build strong global brands like Apple, Meta, and Unilever to stay competitive. He also sounded the alarm on excessive protectionism, warning that it could jeopardize long-term competitiveness and lead to potential capital outflows.

The stakes are high as governments and policymakers will need to weigh in on the matter soon. With quick commerce's influence growing by the day, Kotak's words serve as a timely reminder of the pressing need for an open trade environment that benefits both local retailers and global players alike.

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