Swiggy gig workers talk to each other during a promotional event in Mumbai.
Credit: Reuters File Photo
Quick commerce firms Swiggy and IPO-bound Zepto have changed the branding of their quick commerce operations to stop promoting it as a "10-minute" service following a government order, according to the companies' apps on Wednesday.
Reuters reported on Tuesday that the government ordered Eternal's Blinkit, Zepto and Swiggy to stop promoting their grocery deliveries as a "10-minute" service.
Fears of rash driving by riders and low pay for not completing orders within 10 minutes have dogged the so-called "quick commerce" sector that is currently worth about $11.5 billion, data from Datum Intelligence shows.
"The removal of the 10-minute delivery catchline is largely optics-driven rather than business-altering," said Karan Taurani, executive vice president at Elara Capital.
"The proposition of quick commerce continues to be anchored in speed, convenience, and proximity-led fulfillment, which remains structurally superior to horizontal e-commerce timelines," Taurani added.
Eternal later on Tuesday also clarified that there was no change in the business model for its quick commerce platform, Blinkit.
Zepto declined to comment and Swiggy did not immediately respond to a Reuters' request for comment.
The labour ministry raised the issue during a closed-door meeting on Saturday with representatives from the three companies, asking them to stop promoting the business as a 10-minute service, the sources told Reuters.
Quick-commerce firms in India are locked in an intense battle for market share, pouring in billions to open more stores as India's growing urban consumer base increasingly opts for 10-minute deliveries for everything from groceries to electronics.
Swiggy's shares pared losses after falling as much as 2.6 per cent earlier in the session and was last down 1.23 per cent, while Eternal climbed about 1 per cent.