E-commerce marketplace Meesho does not see any impact of the burgeoning quick-commerce space on its business at this point as for the company, consumers primarily come from tier II and III cities whereas the quick commerce model is mostly focussed on tier-I cities.
The SoftBank-backed e-commerce firm feels its product category mix is also “very different” from that of the quick commerce players.
“Our consumers primarily come from tier II and III cities. And, providing them a great price and value for money is very, very important. Today, the proposition that quick commerce is building is primarily towards tier I cities. Also, our category mix and consumer mix are also very different,” Sourabh Pandey, General Manager, Fulfillment & Experience, Meesho, told businessline.
Major e-commerce companies are now venturing into the quick commerce space which has been witnessing a rapid growth.
“It’s (quick commerce) a great innovation, and what is driving is great. I think for our consumer base right now the bigger problem will be solving value for money and making sure that we are able to make more and more products affordable, which right now is not the focus of quick commerce, at least the way it is expanding and where it is expanding,” Pandey said.
Average delivery times
For Meesho, during the last 24 months, average delivery times have come down by around 30 per cent. “We are delivering shipments 30 per cent faster than we were delivering 24 months ago. We will continue to make investments towards it. But pricing is our big mode, which our consumers love us for. So we would want to ensure that speed comes while keeping that pricing advantage in place,” said Pandey.
The company’s revenue from operations grew 33 per cent year-on-year (y-o-y) in FY24, driven by 36 per cent increase in orders delivered. “In the 12 months, around 18.5 crore Indians bought on Meesho. The transacting users would have grown by close to 50 per cent y-o-y in the last year, because we are bringing a lot of supply online. We are also unlocking consumers who are coming online for the first time and starting to buy from us,” Pandey added.
