AI and Social Commerce Revolutionizing the Rapidly Expanding Indian Quick-Commerce Market

CXOToday has engaged in an exclusive interview with Akshat Saxena, Chief Executive Officer, Froker

1.  What is the current scenario of quick commerce and the challenges in the market?

In 2024, the quick commerce market is rapidly expanding, fueled by technological advances and evolving consumer demands. Key customer concerns now include higher prices and a lack of personalized recommendations, posing a challenge for businesses to balance fast service with customized, cost-effective solutions. This shift emphasizes the need for e-commerce platforms to deliver not only speed but also tailored, value-driven shopping experiences.

2.  How is Froker utilizing AI/ Gen-AI and social commerce to resolve issues?

At Froker, we are harnessing the power of Generative AI to offer highly personalized recommendations tailored to individual user preferences and specific contexts. By leveraging data derived from user social interactions, we’re training our AI systems to deeply understand and anticipate user needs. This approach allows us to deliver significantly more accurate and relevant suggestions than traditional e-commerce platforms, ensuring a unique and customized shopping experience for each user.

3.  What is Froker’s business model and vision for the long term?

At Froker, we aim to revolutionize the e-commerce experience by putting pricing power in the hands of our customers. We achieve this through a unique model that integrates advertising: users can earn discounts based on their app usage and engagement levels. This approach not only empowers our customers but also nurtures a more interactive and rewarding shopping environment. Our business model is supported by two primary revenue streams: advertising and commissions on orders. Our long-term vision is ambitious yet clear – to establish Froker as the go-to platform for all e-commerce transactions, setting a new standard in customer empowerment and satisfaction in the digital marketplace.

4.  What are the benefits for the customers and merchants?

At Froker, our commitment to customer satisfaction is paramount, and it’s at the core of our innovative business model. We empower our customers with the unique ability to set their own prices, ensuring a sense of ownership and value unmatched in the market. Our platform is underpinned by a sophisticated AI engine, designed to grasp and adapt to individual user preferences, thereby providing a highly personalized shopping experience.

For our merchant partners, we address a fundamental challenge they face with typical e-commerce platforms – the burden of high commissions. We pride ourselves on charging the lowest possible commission, offering a more equitable and sustainable business environment. Additionally, we serve as a dynamic marketing catalyst for our merchants by connecting them with influencers. This not only helps in elevating their brand visibility but also significantly boosts their business growth, creating a win-win situation for both merchants and customers.

5.  What is the way forward and upcoming trends in quick commerce?

Looking ahead, the landscape of quick commerce is set to be transformed by several emerging trends, with social commerce poised to claim a substantial share of the overall market. The shift towards a customer-centric approach will be a key differentiator, particularly in terms of pricing strategies. These strategies are anticipated to play a pivotal role in defining market leadership in the near future.

Moreover, we expect to see a significant transition in business models within the quick commerce sector. Traditional commission-based frameworks are likely to diminish in favor of subscription models and fixed-cost structures. This evolution reflects a broader industry move towards more predictable and stable revenue streams, aligning with evolving consumer preferences and market dynamics.