Title: Zepto Climbs to No. 2 in Quick Commerce Behind Blinki

Synopsis: Zepto has overtaken Swiggy Instamart to become the second-largest player in quick commerce, as per Motilal Oswal. Blinkit leads the market, but the competition remains intense, with Zepto’s execution strategy and aggressive expansion driving its growth.

Zepto, one of the fast-growing players in quick commerce, raced ahead to become the sector's second-largest operator, leaving Swiggy Instamart behind. One of the latest reports by Motilal Oswal highlights Zepto's aggressive growth and places it behind Blinkit, the market leader owned by Zomato.

Zepto

The Numbers Behind the Rankings

Lagging behind is Blinkit at 46% and Zepto at 29%, followed by Swiggy Instamart with a market share of 25%, according to Motilal Oswal's findings. This stands in contrast to earlier predictions that Swiggy Instamart would be second.

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What pushes Zepto forward?

Infrastructural and marketing investments have been driving the growth of Zepto. The firm has expanded fast with its network of dark stores and invested much more in digital marketing and hiring, according to reports that indicated its monthly cash burn had shoot up from ₹35-40 crore in May to ₹300 crore in October. Interestingly, analysts at HSBC said that "success for Zepto doesn't wholly rely on heavy discounting". Rather its executional excellence is proving more effective with operational efficiency on par with Blinkit.

Motilal Oswal

Competitive Landscape

According to Motilal Oswal, the quick commerce space is so intensely competitive. While the progress of Zepto has been impressive, it's too early to confirm a winner. The analysts at HDFC held the view that the industry had not converged to a point, but the market dynamics were ripe for shifts.

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The Quick Commerce Race

Zepto's growth indicates more of its potential while highlighting the larger challenge of profitability in quick commerce. The increasing cash burn across competitors implies that the race is not about grabbing market share but sustaining it over a period of time. While companies keep on innovating and strategizing, there is all the more scope for consumers to gain on convenient, cheaper offers.

As per per the reports-

Inputs by Agencies

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