Tata joins quick commerce frenzy with Neu Flash amid consumer federation’s demands for halting investments in these platforms
Tata Digital, the operator of the Tata conglomerate’s e-commerce super app Neu, has launched quick commerce services called Neu Flash in more than 20 cities, reported Inc42.
Neu Flash is a 15-minute delivery service covering categories like groceries, electronics, and fashion.
The service utilises BigBasket’s hyperlocal network for groceries, Croma for electronics, and Tata Cliq for fashion. The launch comes as competition intensifies in this sector in India, with companies like Myntra and Amazon also entering the market.
As consumers increasingly turn to quick commerce for categories beyond groceries, including higher-value purchases, e-commerce platforms are introducing their own services.
Myntra recently launched its quick delivery initiative M-Now, which delivers products in under 30 minutes to two hours. Moreover, Amazon India is keen to accelerate the launch of its quick commerce arm, under the name Tez, reported Economic Times.
Distributors’ Federation Demands Halt Of Quick Commerce Investments
Recently, it was reported that the All India Consumer Products Distributors Federation (AICPDF) had urged the Finance Ministry to halt new investments in these platforms, citing predatory pricing and unsustainable practices. In a letter, AICPDF highlighted concerns about platforms like Zepto, Blinkit, and Instamart deploying over 80% of raised funds on aggressive customer acquisition instead of fostering sustainable growth.
Quick commerce platforms have reportedly captured 25-30% of the business traditionally held by Kirana stores, leading to reduced revenue for 8 crore traditional retailers. Organizations like the Confederation of All India Traders (CAIT) accused these platforms of misusing foreign direct investment (FDI) to fund deep discounting, adversely impacting small businesses and entrepreneurial opportunities. Last month, AICPDF claimed that a quick commerce boom led to the closure of 2 lakh Kirana stores.
The distributors’ body has called for:
- Halting investments until compliance investigations by authorities are complete.
- Auditing funds raised by quick commerce platforms.
- Promoting ethical investments and regulatory policies to protect small retailers.
The AICPDF also raised issues about dark stores bypassing inventory-based e-commerce regulations and private vehicle use for deliveries, urging stricter compliance with food safety and labour laws. The Food Safety and Standards Authority of India (FSSAI) recently directed e-commerce food sellers to ensure a minimum shelf-life of 30% on delivered items. Additionally, the Central Consumer Protection Authority probed the accuracy of “10-minute delivery” claims.
Moreover, AICPDF had written a letter to the Competition Commission of India (CCI) urging it to take action against platforms like Blinkit, Zepto, etc. for anti-competitive practices. Previously, the body had also filed a complaint with the Ministry of Commerce and the Department for Promotion of Industry and Internal Trade (DPIIT), stating that important issues were “being sidelined in the name of technology, convenience, and the Indian ownership of some firms.”
Quick commerce platforms’ ability to bypass traditional distributor networks and reduce advertising costs allows them to undercut prices, as noted in CLSA’s App-racadabra report. The rapid expansion of such platforms continues to challenge traditional supply chains, raising questions about sustainability, regulation, and fairness in the retail ecosystem.
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