Government Cracks Down On 10-Minute Delivery Guarantees
The Indian government has directed quick commerce companies, including Swiggy and Zepto, to stop promising 10-minute deliveries on their platforms. This move is aimed at ensuring the safety of delivery personnel and reducing the risk of accidents. The news sent shockwaves through the industry, with many wondering how this would impact the businesses of these companies.
However, according to a note by Elara Capital, the removal of 10-minute delivery guarantees could actually be a positive for Swiggy and Zepto. The research firm believes that this move could help these companies to improve profit margins and reduce their operational costs. But, how exactly will this work?
The Benefits Of Removing 10-Minute Delivery Guarantees
Elara Capital’s note highlights several benefits that Swiggy and Zepto could reap from the removal of 10-minute delivery guarantees. For one, it would allow these companies to optimize their logistics and reduce their reliance on high-speed delivery. This, in turn, could help them to lower their costs and improve their bottom line.
Another benefit of removing 10-minute delivery guarantees is that it would give Swiggy and Zepto the flexibility to focus on other aspects of their business. For example, they could focus on improving their customer service or expanding their product offerings. This, in turn, could help them to drive growth and increase their market share.
Impact On The Indian Stock Market
The news of the government’s directive to halt 10-minute delivery guarantees on quick commerce platforms has had a minimal impact on the Indian stock market. The stock prices of Swiggy and Zepto have not been significantly affected by the announcement, with many investors seemingly unfazed by the news.
However, according to Elara Capital, this could be a buying opportunity for investors. The research firm believes that the removal of 10-minute delivery guarantees could be a positive for Swiggy and Zepto in the long run, and that investors should take advantage of the current low valuations to buy into these companies.
Conclusion
In conclusion, the removal of 10-minute delivery guarantees on quick commerce platforms could be a blessing in disguise for Swiggy and Zepto. According to Elara Capital, this move could help these companies to improve their profit margins and reduce their operational costs. Additionally, it could give them the flexibility to focus on other aspects of their business and drive growth and increase their market share.
As an investor, it’s essential to stay informed about the latest developments in the Indian stock market and to keep an eye on companies like Swiggy and Zepto. By doing so, you can make informed investment decisions and maximize your returns. So, stay tuned for more updates on the Indian stock market and the quick commerce industry.
