Quick commerce market is heating up in India !

Indeed, convenience has become a significant driver of consumer behaviour, and the demand for instant home delivery services is expected to continue fuelling the growth of the quick commerce (q-commerce) market. The concept of quick commerce in India, is ensuring the delivery of groceries and various items within 10 to 20 minutes, facilitated by advanced logistics and technology infrastructure.

Advances in technology, particularly in e-commerce platforms, mobile applications, and logistics solutions, have made it easier for businesses to offer quick and efficient delivery services. Real-time tracking, route optimization, and inventory management systems contribute to the seamless execution of instant home delivery.

A 2023 Deloitte report on the future of retail estimates a $40 Bn market by 2030, with its Gross Merchandise Value skyrocketing from a mere $0.04 billion in 2019 to $2.8 billion in 2023. The model has its merits if it is valued as a premium service but stays within the realms of possibility.

The competition in this sector is currently intensifying, with dominant players like Tata’s BigBasket, Swiggy’s Instamart, Zomato’s Blinkit, and Zepto leading the market. Interestingly, Walmart-owned Flipkart is set to join the race. The intensifying competition in the q-commerce sector underscores the immense potential and market opportunity it presents. With consumers increasingly seeking convenience and instant gratification, companies are racing to innovate and enhance their delivery capabilities to capture market share.

Expanding into additional product categories beyond groceries represents a strategic move for companies like Zepto and Blinkit to capitalize on the growing demand for quick commerce and cater to the evolving needs of consumers. By diversifying their offerings, these platforms can attract a broader customer base and drive increased frequency of purchases. The e-commerce giant is strategically setting the stage by creating a network of dark stores in key urban centres, including Bengaluru, Delhi (NCR), and Hyderabad, among others.

Furthermore, as income levels continue to rise, cost constraints that may have hindered the adoption of instant home delivery services in the past are likely to diminish. Consumers are increasingly willing to pay a premium for the convenience and time-saving benefits offered by these services.

S Mohini Ratna, Editor, VARINDIA