Under 15 minutes or nothing: Indian quick commerce firms’ race for speed

In The Checkout this week, we look at the rise of the quick commerce delivery sector in India, and Carousell’s new safety policy for Singapore users. [Read from your browser]( The Checkout 🛒  --------------------------------------------------------------- Welcome to The Checkout! Delivered every fortnight, this free newsletter breaks down the biggest stories and trends in ecommerce. You can find past issues [here]( or [sign up here]( to receive future newsletters. Also, If you’re not a subscriber, get access by [registering here](. IN FOCUS In today's newsletter, we spotlight: - [How India’s quick commerce sector sizzles even as Southeast Asia’s fizzles out]( - What drove Love Bonito’s [45% top-line growth in 2022]( - How Carousell’s new safety policy might help fight scams - and improve the firm’s financial performance --------------------------------------------------------------- Hello {NAME} Rino is the name of my goddaughter - or god-dog-hter - my friends’ shiba inu that I helped take care of when she was young. Even now, years later, she’s delighted to see me whenever I come to visit. So I remember being intrigued when a Vietnamese company of the same name, which aimed to deliver groceries in 10 minutes, raised US$3 million in pre-seed funding in February 2022. Sadly, Rino - the company - shut down its quick commerce app in Vietnam later that year, pivoting to a used-car marketplace. The firm is just one of several Southeast Asian quick commerce startups that have fizzled out in recent years. Yet, the quick commerce sector seems to be doing well in India, as my colleague Samreen discusses in this week’s Big Story. In fact, the country’s quick commerce sector has enjoyed an annual growth rate 5x that of ecommerce over the past year and is projected to reach US$6 billion in gross merchandise volume by 2025. How have Indian delivery platforms managed to thrive, and what does the future hold for them? Read Samreen’s piece to find out. Meanwhile, in this week’s Hot Take, I take a closer look at Carousell’s new safety policy to fight scams, and what it means for users and the platform. -- Simon  --------------------------------------------------------------- THE BIG STORIES 1️⃣ [Behind India’s race to deliver everything, everywhere under 15 minutes]( Diversifying product categories and revenue streams are key drivers fueling the resurgence of quick commerce in India. 2️⃣ [Love Bonito sees 45% revenue growth in 2022 amid costly expansion bet]( The Singapore company's total losses more than doubled in 2022.  ---------------------------------------------------------------  THE HOT TAKE Carousell’s new safety policy kills two birds with one stone Here’s what happened: - The ecommerce platform recently announced [updates]( to enhance safety for Singapore-based users. - The updates, which took effect at the end of June, prevent buyers and sellers from sharing email addresses, QR codes, and links when chatting via the app. - The move is in line with a [new codes of practice]( outlined by the city-state’s Ministry of Home Affairs to root out online scams. Here’s our take: Carousell’s policy changes come as the number of scams in Singapore [leaped by nearly 50%]( in 2023, with most of them related to jobs and ecommerce, although the dollar amount lost by victims dropped slightly to S$652 million (US$483 million). One of the significant changes Carousell is making pertains to how users transact. Parties typically have two options when transacting. First, they may arrange to meet up in person. Previously, payment could be made before or during the meet-up, at the discretion of users. However, Carousell now explicitly states that “sellers must not ask buyers to pay before meet-ups” unless they are using the platform’s escrow service. It also advises buyers to only pay at the meet-up. Second, they may transact online, where the buyer receives their order via delivery after making the payment digitally. Previously, it was common for users to share bank account details or phone numbers via chat so that payment could be done via PayNow, Singapore’s national digital payments system. However, Carousell now requires buyers to pay via the “buy” button, a feature it introduced last year. According to the platform, the “buy” button [streamlines the purchase, payments, and delivery process]( while boosting buyer safeguards. When it was first rolled out, the “buy” button was opt-in and free to use. But with the latest changes, its use is mandatory for online transactions, and buyers are also charged [associated fees](. For items under S$100 (US$75), for example, the fees range from 3.5% to 4.5% of the listing price. While these moves ultimately serve to protect users, the additional platform fees will also flow through to the company’s financials. It’s good that the company is doing its part to fight scams. But at the same time, it also takes away from the ease of using the platform. Two users I spoke to said that it is now more cumbersome to transact. Previously, paying for or receiving payment was straightforward and could be done instantly by exchanging mobile phone numbers. However, both said that Carousell now blocks messages that contain these details. Indeed, the firm has [said]( that the sharing of QR codes, email addresses, links, phone numbers, as well as other personal information is prohibited. As shown in a photo example, the firm blocked a message of this kind due to its “phishing risks.” For many long-time users of the platform, the recent updates will require getting used to. In particular, sellers used to receive payment via PayNow before agreeing to a meet-up or mailing out items, with both parties typically using WhatsApp to arrange these meet-ups. But these minor inconveniences could go a long way in tackling a long-time issue and improving the credibility of the platform. Encouraging more transactions using the “buy” button should help to boost Carousell’s top and bottom line, given that before these changes, many casual users of the platform didn’t pay to list and buy items. It will be interesting to see if the updates are effective in reducing the number of scams on the platform. Unfortunately, scammers often adapt their tactics and find new ways to get around safeguards. This is why user education is of vital importance. ---------------------------------------------------------------  EVENTS HAPPENING You can also check out a curated list of trending tech events [over here]( and Tech in Asia’s signature events [here](. [Tech in Asia Conference Kuala Lumpur 2024 : Malaysia on The Rise on July 24 - 25]( Over 1,000 founders and investors have already signed up, and you're invited. This is your chance to be part of the dynamic Southeast Asian tech scene. 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