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Monday, July 15, 2024

Fast commerce companies encounter food safety problems

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In Short:

Food safety regulators are increasing checks at quick commerce firm warehouses due to violations and customer complaints. Ice cream brand Yummo faced criticism after a human finger was found in a pack. Yummo products were removed from platforms Blinkit and Zepto. Walko Foods stopped manufacturing at the facility that made the product. Quick commerce needs stringent quality measures to ensure product safety. Despite challenges, quick commerce has the potential to grow.

Hey there! So, it looks like food safety regulators are really cracking down on quick commerce firms’ warehouses lately due to some not-so-pleasant incidents. Industry folks have noticed a rise in violations and customer complaints, even as these companies are expanding their operations at a fast pace.

Trouble for Yummo

Just the other day, there was quite a stir when a human finger was discovered in a pack of Yummo ice cream. Yikes! As a result, popular quick commerce platforms like Blinkit and Zepto have temporarily removed Yummo products until the investigation is completed. A senior executive mentioned that Yummo products have been ‘delisted’ for now.

Owned by Walko Foods, the Yummo Brand has stopped production at the facility that made the ice cream. This company, which secured $20 million in funding in February from Jungle Ventures, also offers ice creams under other brands like NIC and Grameen Kulfi.

Taking Action for Quality

Chirag Taneja, Founder and CEO of GoKwik, highlighted the importance of strict quality measures in the quick commerce sector. He emphasized the need for thorough vendor selection, product testing, and quality checks to ensure top-notch products are delivered swiftly. Implementing comprehensive quality control procedures is key!

Despite recent challenges, quick commerce remains a thriving part of the e-commerce industry. An investor believes in its massive growth potential but also stresses the importance of building trust with shoppers by promptly addressing and rectifying any violations.

Not forgetting other players in the game, we have Prosus-backed Swiggy’s Instamart and Tata Digital-backed Big Basket’s BB Now operating in this segment alongside Zepto and Blinkit.

Big Money Moves

Exciting news on the funding front! Zepto is reportedly raising a whopping $660 million from both existing and new investors at a valuation of $3.62 billion. The round will see participation from big names like DST Global, Lightspeed Venture Partners, and more. Existing investors like StepStone Group and Nexus Venture Partners are also doubling down on their investments in Zepto.

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