Uday Kotak warns about Swiggy, Zomato, Zepto, says “Quick commerce has a challenge to…’’

Uday Kotak also pitched for an increase in the defence budget, saying it is strength on this front that shows the true prowess of a country.

Financial services veteran Uday Kotak has voiced concerns over the rising influence of Quick Commerce (Q-Com) on traditional retail businesses, suggesting it could eventually escalate into a political issue. Speaking at a CNBC TV18 event, Kotak pointed out that Quick Commerce has seen significant success in India, unlike in many other countries.

Speaking at an event organised by CNBC TV18, Kotak also pitched for Indian businesses becoming more competitive in a “free and fair trade”.

“Q-Com has a challenge to the local retailer and it is a challenge which will come to the political front,” he said in comments that come a day after the listing of Swiggy, a prominent name in the Q-Com side.

Uday Kotak Concerns Over Quick Commerce Industry

Quick commerce involves delivering consumer goods within 10 to 30 minutes, with leading players in India like Blinkit, Zepto, Swiggy Instamart, and Flipkart driving the trend. According to a report by Datum Intelligence, the quick commerce market in India is projected to grow from $6.1 billion in 2024 to $40 billion by 2030.

The founder and non-executive director of private sector lender Kotak Mahindra Bank said India is a unique country in the world where quick service retail has succeeded, unlike in most other parts of the world where this model has not been as effective.

This is a positive sign, where Indian innovation is working on the ground and some of this value creation is indeed real and sustainable, he said.

However, India is yet to deliver consumer brands like Apple, Meta, Unilever etc which are a key feature in any developed country or region, Kotak said, exhorting Indian businesses to focus on product and creativity.

Kotak On Protection For Domestic Players

Kotak also said that the protection for domestic players in the domestic market is “very dangerous” from a long-term competitiveness perspective.

“I’d love to see Indian business being competitive in free and fair trade. We should move in the direction of open trade rather than protecting domestic business,” he said.

The billionaire banker said foreign portfolio investors have over USD 900 billion invested in the Indian markets, and with the changes which will happen under a Trump administration or any other global event, the country needs to be ready for 5-10 per cent of it moving out.

Kotak also pitched for an increase in the defence budget, saying it is strength on this front that shows the true prowess of a country. 

(With inputs from PTI)