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E-commerce platforms Magicpin and Ola have entered the quick commerce sector, launching their 15-minute and 10-minute food delivery services, respectively, as per reports.
Magicpin’s entry into quick commerce
Magicpin has launched magicNOW which aims to deliver food from restaurants within a 1.5 to 2-kilometre radius of customers across tier 1 cities like Bengaluru, Hyderabad, Mumbai. During its one-month pilot phase, the platform claims to have completed 75,000 food deliveries through its network of multiple partner restaurants. It will be available within the food delivery vertical of the Magicpin app and its deliveries will be carried out by the company’s third-party logistics partner, Velocity.
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Launched in 2015, Magicpin is a “hyperlocal retail ecosystem” offering customers products and services across fashion, food, electronics, grocery, pharmacy, etc. In March 2023, the platform joined the Open Network For Digital Commerce (ONDC) initiative, becoming the largest restaurant aggregator on the network and registering a 15 times surge in growth over 15 months. For context, ONDC is a digital project by the Indian government to develop an open UPI-like architecture for the e-commerce industry.
Revival of Ola Dash
Along with Magicpin, Ola is also one of the latest companies to join the quick food delivery bandwagon. Currently operational in Bengaluru, Ola Dash offers food delivery from restaurants within a 1-kilometre radius. The service is located within Ola’s main app. However, the company has made no formal announcement regarding the service as of now.
Previously in 2022, Ola Dash was launched as the company’s 10-minute grocery delivery arm, but was shut down within six months, with the company citing ‘reassessment of its priorities’. Further, the company has had a rocky past with the food delivery and quick commerce sector, shutting down previous ventures like Ola Cafes, Foodpanda, and Ola Foods.
Akin to Magicpin, in September 2023, Ola joined ONDC. In April 2024, the ride-hailing company added the grocery and fashion segments for customers on ONDC. Recently, the company announced its intent to expand its offerings in the food and beverage (F&B) category pan-India, Economic Times reported.
However, complaints about delayed food deliveries through ONDC persist, with concerns raised about customer care responsiveness.
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Other hyperfast food services
Food e-commerce platforms Swiggy through ‘Bolt‘, Zomato through ‘Bistro‘, and Zepto Cafe have also launched ultrafast food delivery services. Recently, during its second quarterly earnings call, Swiggy reported that Bolt accounted for 5% of the food platform’s overall volume within eight weeks of its launch. These new launches come in addition to quick commerce verticals by platforms like Swiggy’s Instamart, Zomato’s Blinkit, and Zepto, acquiring a combined 94.5% market share in India’s quick commerce industry as of Financial Year 2024.
CAUSE FOR CONCERN?
While hyperfast deliveries seem to be becoming the new norm in the food delivery industry, it also raises several concerns like stringent time constraints jeopardising worker safety. Besides this, faster food delivery times may impose higher costs on consumers, with aggregator platforms like Swiggy, Zomato, and Magicpin levying 150%-200% higher delivery fees than orders placed directly on restaurants’ channels. Further, premium subscriptions like Swiggy One offering customers perks like free delivery within a seven-kilometre radius have also been found to provide no additional savings for members.
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