Tata Group enters ultra-fast delivery market with 'Neu Flash'

The Tata Group is launching Neu Flash, its new ultra-fast delivery service designed to cater to rising customer demand in major metropolitan areas, as per reports.

This initiative follows the lead of established players like Flipkart and Reliance Industries, as the company seeks to capture a share of the rapidly expanding quick commerce market.

Neu Flash will initially be available to select users and will offer a diverse range of products, including groceries, electronics, and fashion. The grocery segment will be powered by Big Basket, which is transitioning to a fully quick commerce model. Croma will handle electronics and mobile phones, while Tata Cliq will focus on fashion and lifestyle products, starting with specific stock keeping units (SKUs).

This expansion marks Tata's latest effort to engage with online shoppers amid increasing competition in the quick commerce sector. Leading the market are Zomato-owned Blinkit, Swiggy Instamart, and Zepto, which collectively command over 85% of the market share. Meanwhile, Flipkart has introduced its service named Minutes, and Reliance JioMart is re-testing its offerings after discontinuing its 90-minute delivery service under JioMart Express.

The quick commerce sector is reportedly growing at a pace that outstrips traditional retail chains, as noted in a recent Bernstein report. This growth is prompting consumer platforms to adapt by offering a wider array of products for delivery within 10 to 20 minutes.

For Tata Neu, its approach to the quick commerce model will be crucial, particularly as the group opts for a more conservative strategy regarding consumer incentives.

Tata’s existing epharmacy, 1mg, which already provides several hours of delivery in select regions like Delhi NCR, has not yet fully integrated into Neu Flash. However, it has begun offering certain everyday medications, such as headache relief and protein whey, for 10-minute delivery.

Sources suggest that the Tata Group may leverage its retail network through Croma to facilitate some of these deliveries, as the stores are already utilized for same-day and next-day services.

BigBasket, operating BB Now, employs a tiered delivery fee structure based on order sizes. As competition heats up, Blinkit is currently offering free delivery for orders over Rs 199, while Swiggy has reduced its minimum delivery fee to Rs 99.

Read more: Tata Digital to integrate assets BigBasket, 1mg and Cliq under Tata Neu app