Tata’s Neu Pilots 15-Minute Delivery Service Amid Quick Commerce Boom

Tata group’s ecommerce venture, Neu, is piloting a quick commerce delivery service under Neu Flash as demand for instant deliveries picks up pace in India.

Sources close to the matter told Inc42 that the 15-minute delivery service is now active in more than 20 cities across India. 

While major metros like Delhi NCR, Mumbai, Bengaluru, Hyderabad, Pune, Chennai are among the key markets, the service has been expanded to several tier-II cities as well. 

However, the rollout is currently limited to select pin codes within these cities, with a curated selection of products available during the initial phase.

Neu Flash offers delivery of products ranging from groceries and electronics to apparel and beauty items.

The app which is built upon Tata’s existing digital infrastructure, offers quick delivery across multiple categories including groceries, electronics, apparel, and beauty products. It leverages BigBasket’s existing hyperlocal network, while Croma manages electronics deliveries and Tata Cliq handles fashion and lifestyle products. 

This expansion comes as Tata Digital works to strengthen Neu’s market position, following its earlier challenges in the superapp space. The quick commerce expansion follows substantial backend improvements to Neu’s platform over the past year, including revamped user interface and enhanced integration of Tata’s digital assets. 

Industry data shows that India’s quick commerce sector has grown by 280% in the last two years, with market leaders Blinkit, Zepto, and Swiggy Instamart collectively reporting over $1 Bn in revenue for FY24.

This comes at a time when companies in India are intensifying their quick commerce offerings. Myntra recently launched M-Now for 30-minute to 2-hour deliveries, while Amazon India is preparing to launch its quick commerce service, Tez.

Zepto’s recent $350 Mn funding round, led by Motilal Oswal’s Private Wealth division, underscores the intense competition in the quick commerce space. The company has raised $1.35 Bn this year alone to expand its dark store network and broaden its product categories, highlighting the substantial investments players are making to capture market share in this rapidly growing sector.

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