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Tag: AI market share

  • The Quick Commerce Conundrum: Who’s Really Making Money?

    The Quick Commerce Conundrum: Who’s Really Making Money?


    Introduction to Quick Commerce

    The rise of quick commerce in India has been nothing short of phenomenal. With players like Zepto, Blinkit, and Instamart vying for market share, the competition is fierce. But amidst all the hype, a critical question arises: who is actually making money in this space? As Anurag Tyagi pointed out, Instamart suffered a loss of 1000 cr, Zepto a staggering 1250 cr loss, and Blinkit 110 cr loss, according to his LinkedIn post.

    Market Dynamics and Financials

    A Moneycontrol analysis revealed that the top three players — Blinkit parent Eternal, Swiggy, and Zepto — are together sitting on over Rs 40,000 crore in cash, despite burning nearly Rs 9,000 crore collectively in the past nine to 11 months. This indicates an intense spending cycle, even as fresh capital continues to flow in. Zepto had a cash balance of $1.4 billion as of November 2024, which has since come down to $900 million, implying a burn of about $500 million in under a year, as reported by Moneycontrol.

    Market Share and Revenue

    Recent reports place Blinkit’s market share around 44-46%, with Zepto at approximately 29-30% and Instamart at 23-25%, as detailed in a case study by CIIM. This competitive landscape is further complicated by the fact that despite mounting skepticism around quick commerce’s profitability, Zepto has raised over $665M to date from top-tier firms, as noted by Predict Growth.

    Profitability and Sustainability

    Zepto’s goal, as surmised by Nuvama, is not to fight for market share by burning more cash but to grow by keeping losses in check. This approach is highlighted by Zepto’s decision to scale down its burn rate meaningfully to prioritize sustainable growth. The company had initially burned $150–200 million per quarter but has since reduced this amount, indicating a shift towards more sustainable operations, as discussed by NDTV Profit.

    Conclusion and Future Outlook

    In conclusion, the quick commerce space in India is marked by intense competition, significant financial investments, and a race towards sustainability. As the market continues to evolve, it will be crucial for players to balance growth with profitability. The future implications of this trend are profound, with potential shake-outs in the sector and a need for innovative strategies to achieve long-term success.

  • Microsoft Scales Back AI Ambitions as Copilot Fails to Gain Traction

    Microsoft Scales Back AI Ambitions as Copilot Fails to Gain Traction


    Introduction to Microsoft’s AI Setbacks

    Microsoft has been at the forefront of artificial intelligence (AI) development, investing heavily in various AI companies and technologies. However, its Copilot AI software has failed to gain significant traction, leading the company to scale back its AI goals. According to ExtremeTech, Microsoft has cut its sales targets for Copilot by up to 50% due to a lack of interest from potential buyers.

    Market Share and Competition

    The AI market is highly competitive, with other companies like OpenAI and Google making significant strides. OpenAI’s ChatGPT has taken the lead, commanding over 61% of the market share, while Google’s Gemini is closing in on Microsoft’s 14% share, as reported by Yahoo Tech. This shift in market dynamics has raised concerns about Microsoft’s substantial investment in AI and its ability to compete in the space.

    Copilot’s Lack of Adoption

    Copilot’s poor adoption rate can be attributed to its limited usefulness and lack of user-friendly features. As noted by news.ycombinator.com, many users have reported difficulties in using Copilot, citing issues such as poorly formatted output and unhelpful suggestions. This has led to a lack of confidence in the software, making it harder for Microsoft to sell it to potential customers.

    Microsoft’s Response and Future Plans

    Despite the setbacks, Microsoft remains committed to its AI ambitions. According to CNBC, the company is focusing on internal adoption, with 70% of its commercial sales, support, and partner services workers using Copilot daily. Microsoft is also exploring ways to make Copilot more valuable to customers, such as offering incentives for data-cleaning projects.

    Expert Insights and Analysis

    Experts believe that Microsoft needs to re-evaluate its AI strategy and focus on creating more user-friendly and practical AI solutions. As Windows Central notes, the company’s current approach may not be effective in gaining traction in the competitive AI market.

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