Govt Demands Proof Of 10-Minute Delivery Claims From Quick Commerce Companies

Quick commerce companies operating in India have come under the radar of the Central Consumer Protection Authority (CCPA), with the government demanding evidence to substantiate their advertised claims of delivering orders within "10 minutes or less." 

Blinkit, Swiggy Instamart, Zepto, and Big Basket (BB Now) are among the key players summoned by the Ministry of Consumer Affairs to provide data validating their delivery timelines.

The evolution of quick commerce, initially met with scepticism regarding the necessity of 10-minute deliveries, has now entrenched itself as an indispensable service within just over three years. Analysts at UBS observe a significant shift in consumer perception, transforming quick commerce from a novelty to an essential service.

In light of the sector's growing prominence, the government aims to ensure transparency and accuracy in messaging, safeguarding consumers against misleading claims. Senior government officials disclosed that quick commerce platforms have been instructed to furnish median delivery times across major cities like Bengaluru, Mumbai, Delhi, Kolkata, and Chennai.

While immediate changes are not mandated, companies failing to substantiate their claims may be compelled to modify their advertising to reflect accurate delivery times, potentially extending the promised timeline to "15 minutes or less."

The government has extended a minor buffer, permitting a median delivery timeline of up to 14 minutes. However, any delay beyond this threshold necessitates a revision of advertising messages. Notably, Zepto, the sector's third-largest player, previously adjusted its delivery times from 10 to 13 minutes to optimise order profitability.

Government initiatives stem from an uptick in customer grievances regarding delivery times and a lack of clarity regarding refunds and compensation for delayed orders. The CCPA intends to convene with executives from food delivery platforms to establish guidelines protecting consumers in instances of order delays, following the submission of data by the platforms.

This heightened scrutiny underscores the CCPA's commitment to curbing unfair trade practices within e-commerce platforms. Chairperson Nidhi Khare emphasised the surge in e-commerce-related complaints, particularly during the pandemic-induced shift to online shopping. Notably, the CCPA previously scrutinised retail giant Amazon over alleged dark patterns on its website and cautioned food delivery platforms like Zomato and Swiggy over similar practices on their mobile applications.

As the government intensifies oversight to ensure fair and transparent practices within the ecommerce landscape, consumers can anticipate greater clarity and accountability from quick commerce platforms regarding their delivery commitments.