CCPA Asks Quick Commerce Players To Prove Their ’10 Minute’ Delivery Claims

The Central Consumer Protection Authority (CCPA) has reportedly asked quick commerce players Blinkit, Swiggy Instamart, Zepto and Big Basket (BB Now) to prove their ‘10 minute’ delivery claims.

According to a report by Moneycontrol, the CCPA, set up under the Consumer Protection Act, 2019, has asked the aforementioned companies to share median data for delivery times across major cities like Bengaluru, Mumbai, Delhi, Kolkata, and Chennai.

Inc42’s queries to Blinkit, Swiggy Instamart, BBNow, and Zepto on the development remained unanswered till the time of publishing this story. Inc42 has also reached out to the CCPA to confirm this development. The article would be updated on receiving their responses.

The development comes at a time when quick commerce players are seeing rapid growth in the county. According to a 2023 Deloitte report, quick commerce has become a preferred channel for consumers, primarily in Tier-I cities, with a 51% purchase rate based on a sample size of 841. 

The four startups mentioned above utilise “10 minute deliveries” prospect heavily in their brand messaging. However, this is subject to terms and conditions.

Swiggy Instamart said in its “Swiggy Diaries”, published in March 2023, that the app can make deliveries in “less than 20 minutes on a busy day and within 10 on a normal one”.

Instamart is currently present in over 25 cities. With an eye on its upcoming initial public offering (IPO), Swiggy has been streamlining and enhancing its quick commerce vertical. Most recently, it integrated Swiggy Mall, under which it sells a wide range of non-grocery items like footwear and electronics items, with Instamart.

Meanwhile, Blinkit’s website says that delivery time can take 10 minutes “during all times the store in your area is operational”. It is pertinent to note that Zomato’s quick commerce vertical has been a major contributor to the listed company’s fortunes. Blinkit clocked a revenue of INR 644 Cr in Q3 FY24 as against INR 301 Cr in the year-ago quarter and INR 505 Cr in Q2 FY24.

Meanwhile, Tata-backed grocery BigBasket entered the quick commerce fray in April 2022. It claims to deliver groceries in 10 minutes to over 10 Mn customers. It is available in select cities only. 

For quick commerce unicorn Zepto, the 10 minutes delivery is subject to terms and conditions. Recently, the startup introduced a membership programme, Zepto Pass, which gives users unlimited deliveries at a monthly cost. Besides, it also rolled out a platform fee of INR 2 per order for its users

The Moneycontrol report further cited a senior government official as saying that the companies are not expected to make changes to their messagings yet. If their median delivery times paint a different picture, they will be asked to alter their ads to reflect the actual times. 

“We’re okay if the median delivery timeline even extends up to 14 minutes from 10 minutes, but any delay beyond that buffer will mean companies have to change their advertising message,” a CCPA official told the publication. 

The developments come at a time when the competition in the quick commerce space  is heating up. Eyeing a piece in the burgeoning market, ecommerce major Flipkart has also been gearing up to enter the space. Recently, it was reported that Flipart was looking to acquire a major stake in Zepto. However, the deal failed to materialise. 

However, the company has been building up its leadership for its quick commerce vertical. It recently appointed senior VP Hemant Badri to lead its foray into the fast-growing space.