The Tata Group is set to launch Neu Flash, a new ultra-fast delivery service catering to rising customer demand in major metropolitan areas. The service will initially be available to select users, offering a diverse range of products. Groceries will be powered by BigBasket, which is shifting to a quick commerce model, electronics by Croma, and fashion and lifestyle products by Tata Cliq, focusing on specific SKUs.

Market Strategy and Competition

With this initiative, Tata joins the quick commerce market, following established players like Flipkart and Reliance Industries. The sector is led by Zomato’s Blinkit, Swiggy Instamart, and Zepto, who together hold over 85% of the market share. Flipkart recently launched its own service, Minutes, and Reliance is refining its quick delivery model after pausing its JioMart Express service. Rapid growth in this sector, outpacing traditional retail, is driving platforms to offer 10-20 minute delivery for various products, according to a Bernstein report.

Current Integrations and Future Plans

Tata's e-pharmacy, 1mg, which offers delivery within hours in certain regions, hasn’t fully integrated with Neu Flash yet but provides select everyday medications for 10-minute delivery. Sources indicate that Tata may also leverage Croma's retail network to support fast deliveries, adding to the competitive structure. Meanwhile, BigBasket’s BB Now uses a tiered delivery fee, while Blinkit and Swiggy offer various incentives, with Swiggy recently lowering its minimum delivery fee to Rs 99.

Source: Storyboard18