India’s ultrafast supply apps and Samsung’s gradual decline in market share


Hello, that is Akito from Singapore. With the Covid-19 restrictions over the previous few years, supply apps have grow to be a staple service in our lives, and they’re nonetheless enhancing quick.

One of the commonest supply apps right here is Grab. I ordered a number of snacks at a Japanese meals retailer about three kilometres away from my home, and it took about 45 minutes for Grab’s rider to ship. When I lived in Tokyo, I used Uber Eats often. Again, it took greater than half-hour for the gadgets I ordered at a comfort retailer in my neighbourhood to reach.

Singapore and Tokyo are mature metropolises with comparatively low site visitors congestion and a well-oiled supply community. I can solely look and marvel at what is going on within the city areas of India, the place fierce competitors has pushed supply occasions down a lot additional.

Fast, sooner, quickest

The race between “quick commerce” supply start-ups is heating up in India to the good thing about impatient shoppers, Nikkei Asia’s Sayan Chakraborty writes from Bengaluru.

According to Sayan’s personal unscientific experiments, the eight-year-old supply app Dunzo was the quickest amongst India’s 4 fast commerce start-ups one latest Friday afternoon. The firm took an order through WhatsApp and had a loaf of bread and chocolate to his dwelling in simply 16 minutes. The remaining three rivals delivered greens, milk, eggs and extra in about 20 minutes.

The secret to those ultrafast occasions in a metropolis identified for its heavy site visitors is that corporations have a whole lot of small fulfilment centres in native neighbourhoods. The entrepreneurs behind these corporations are taking full benefit of cutting-edge expertise and deep data of the native market to develop providers that outperform the world’s main corporations, corresponding to Amazon. One consultancy estimates fast commerce might be price over $5bn by 2025, accounting for a few fifth of the nation’s general on-line grocery market.

It’s one other instance of the “leapfrog” innovation occurring throughout Asia, the place beforehand much less developed markets are adopting the latest expertise and enterprise fashions.

But it’s not but clear which start-up, or start-ups, will dominate in India. “It’s a level playing field now,” mentioned a enterprise capital investor who has backed a fast commerce start-up. “This is the time to acquire customers, which unfortunately necessitates some cash burn.”

Distant second

It has been three years since high administration at Samsung Electronics declared they might seize the title of world’s largest semiconductor foundry. How’s it going? Well, not solely is the corporate nonetheless settled in second place, it’s slipping additional behind its high rival, Taiwan Semiconductor Manufacturing.

If Samsung continues to slide, the world will grow to be much more depending on TSMC for the manufacturing of superior semiconductors, growing threat within the international provide chain.

In the primary quarter of 2022, TSMC captured 53.6 per cent of the foundry market, and Samsung was a distant second at 16.3 per cent. That’s a spot of greater than 37 proportion factors, wider than the 29 factors in early 2019.

Samsung’s foundry enterprise has had issues because the starting of 2021, Nikkei’s Kotaro Hosokawa and Hideaki Ryugen write. It began mass producing 5-nanometer chips within the second half of 2020 however struggled to lift the yield fee, a measure of chips produced with out defects. It confronted problem offering a steady provide to Qualcomm, one in all its largest purchasers. Ultimately, Qualcomm expanded its orders from TSMC at Samsung’s expense.

To make up misplaced floor, Samsung has shaken up its government crew, changing a few dozen senior managers — and hiring from Qualcomm.

India-China tech tensions rise

Beijing has criticised New Delhi for “frequent investigations” into Chinese corporations working in India, writes the Financial Times’ Chloe Cornish from Mumbai.

The salvo from the Chinese embassy in India got here days after monetary authorities raided Chinese cell phone maker Vivo over money-laundering allegations, concentrating on $60mn price of belongings. Vivo mentioned it’s co-operating with authorities.

That was simply the most recent raid by the enforcement arm of India’s finance ministry on Chinese corporations. In May, it swooped on Chinese-owned smartphone maker Xiaomi, concentrating on over $700mn in financial institution accounts.

The two nations have a tense latest historical past. Following border clashes in 2020 between Indian and Chinese troops within the Himalayas that broken bilateral relations, New Delhi banned a whole lot of Chinese-owned apps, accusing them of “stealing and surreptitiously transmitting” customers’ knowledge. The authorities additionally made clear that it wished to section out use of Huawei tools within the telecoms sector.

Yet the crackdown has not carried out a lot to dislodge the Chinese smartphone sellers from their dominant place in India: Chinese expertise corporations management about three-quarters of India’s smartphone market, one of many greatest and fastest-growing globally.

No online game summer season

It could also be excellent news for his or her dad and mom, however it will likely be a disappointing summer season for game-loving youngsters in China. Nikkei Asia’s Cissy Zhou writes from Hong Kong that Tencent Holdings, China’s greatest gaming group, needed to inform individuals it is going to proceed to implement the strict limits imposed by the Chinese authorities.

Last yr, Beijing restricted minors to only three hours of taking part in time per week. There have been rumours on social media that this cover could be relaxed through the two-month summer season vacation. Tencent quashed the discuss on Monday by posting that “there might be a bit of a misunderstanding”.

“It’s better to breathe some fresh air instead of getting addicted to playing games,” the corporate mentioned, shattering the expectations of younger avid gamers.

It could also be Tencent that was most hoping the rumours have been true. The firm’s gaming gross sales to minors have tumbled because the limits have been put in place. And none of Tencent’s new online game titles have been granted licenses by the National Press and Publication Administration between April and July.

Suggested reads

  1. Nikon closes ebook on six many years of SLR digital camera historical past (Nikkei Asia)

  2. Indian minister guarantees new guidelines to rein in Big Tech (Nikkei Asia)

  3. Tesla’s China ties assist EV maker bounce again from COVID chaos (Nikkei Asia)

  4. SoftBank’s Rajeev Misra to launch $6bn fund backed by Abu Dhabi teams (FT)

  5. US and UK intelligence chiefs name for vigilance on China’s industrial spies (FT)

  6. Panasonic to construct $4bn EV battery plant for Tesla in US (Nikkei Asia)

  7. Samsung’s subdued earnings replicate fading pandemic electronics surge (FT)

  8. Amazon woos cloud purchasers as Vietnam floats onshore knowledge guidelines (Nikkei Asia)

  9. Decision on Newport Wafer Fab deal hit by recent delay (FT)

  10. Ukraine warfare provides South Korea’s Hanwha alternative to interrupt into Nato defence market (FT)

#techAsia is co-ordinated by Nikkei Asia’s Katherine Creel in Tokyo, with help from the FT tech desk in London.

Sign up right here at Nikkei Asia to obtain #techAsia every week. The editorial crew may be reached at