The ultra-fast offering might have helped in creating new users, but it comes with a cost to acquire those users and then spend on them. “It’s not easy to deliver fast on a sustained basis. There were a lot of experiments, and it would be fair to imagine that some would work and some won’t,” said Ashutosh Sharma, vice president of research at Forrester.Īll existing players in the quick commerce segment are struggling to be profitable, he said. What grocery platforms have been doing is that they offer a spectrum of services with same-day to next-day deliveries, with some platforms offering two-day deliveries also. It’s a very competitive and hard space to compete at these parameters. “Very few orders for JioMart Express came for Dunzo,” a person aware of the matter said.

JioMart had plans to utilise Dunzo’s delivery fleet for Express. ET reported in January that Reliance Retail may end up writing a relatively smaller cheque in the new funding round being planned at Dunzo, which fired around 3% of its staff last month and undertook significant changes to rein in spiralling operating costs last year. Reliance Retail also is the single largest investor in quick commerce startup Dunzo.

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