Quick Commerce Case Study: Companies, Business Model, Insights, News and More

The concept of quick commerce, abbreviated as q-commerce, is identified through ultra-fast delivery times within 10 to 30 minutes. This model is observed to be highly prevalent in cities where the demand for quick access to goods has dramatically increased.

Companies such as Blinkit, Zepto and Swiggy are at the forefront of this trend, using local micro-warehouses or dark stores to deliver rapidly.

The quick commerce market has indeed boomed with estimates suggesting the sector will reach $72 billion by 2025.

Consumers today expect and demand instant gratification. According to a survey conducted, 70% of shoppers want same-day deliveries.

The Q-commerce business in India is booming strong. The market was evaluated at about $3.34 billion in 2024 and it is said to reach nearly $9.95 billion by 2029.

The number of Q-commerce users in India is set to increase with estimates expected to reach approximately 26.2 million users as of the end of the year 2024.

Top 5 Players in the Quick Commerce Sector in India

• Zepto
• Blinkit (formerly Zomato’s Grofers)
• Swiggy InstaMart
• BigBasket (BB Now)
• Flipkart Minutes

Leading Quick Commerce Companies in India

1. Zepto: Zepto was founded in 2021, Zepto has quickly established itself with grocery and essential deliveries in as little as 8-10 minutes. It operates over 100 micro-warehouses across major cities like Mumbai, Delhi, Bangalore and Chennai, fulfilling around 2,500 orders daily.
2. Blinkit (formerly Grofers): Blinkit is one of the pioneers in the quick commerce space, delivery within 10-20 minutes for a wide range of products including groceries and personal care items.
3. Swiggy Instamart: An expansion of Swiggy’s grocery delivery platform, Instamart targets grocery and essentials within 15-30 minutes.
4. BigBasket (BB Now): BigBasket’s new service called BB Now targets quick commerce. Here groceries are delivered in less than 60 minutes from specific cities.
5. Dunzo: A company originally offering hyperlocal deliveries, Dunzo has quickly taken on the model of quick commerce, where grocery essentials and more are delivered as soon as possible. With this, it makes full use of its network.
6. JioMart: Reliance Retail’s Re-Entering the Quick Commerce Sector with promises of grocery delivery within an hour, but plans to reduce this to 30-45 minutes as it expands.
7. Amazon (Tez): Amazon is planning to come out with its own quick commerce service code-named Tez, for delivering goods within 20-30 minutes.
8. Myntra: Myntra has entered the quick commerce space by offering a four-hour delivery window for fashion items in select areas.
9. Nykaa: Nykaa has launched a pilot of 10-minute delivery in some areas of Mumbai for beauty and personal care products.

Quick Commerce Reliance

Reliance Retail has re-entered the quick commerce market in India with its platform JioMart targeting rapid delivery of groceries and essentials in select areas.

JioMart plans to deliver orders within 10-15 minutes for most grocery items, with some deliveries extending up to 30 minutes.

Unlike its competitors, which rely on dark stores or neighborhood warehouses, JioMart will tap Reliance’s massive network of over 3,000 retail stores spread across India.

To win over customers, JioMart will not charge delivery fees, platform fees, or surge fees, irrespective of the order value. It will be different from the competitors who charge for these.

It intends to increase its value fashion and small electronic products. It is looking to cover an entire gamut of products by stocking 10,000-12,000 SKUs.

It will attempt to reach the smaller towns and cities where quick commerce services are still in infancy. It is looking to expand to 1,150 cities covering around 5,000 pin codes.

Reliance will use the logistics service Grab to make sure deliveries are timely. Every grocery store will be a 3-kilometer radius.

Differences Between Quick Commerce and Traditional E-commerce

Goals of Quick Commerce Strategy

The major aim of quick commerce is ultra-fast delivery options mostly in the range of 10 to 15 minutes. This allows for an increasing demand for products that should be accessible right away by the consumers, including daily staples like groceries and personal care items.

Since it can deliver faster than other traditional e-commerce services, companies under quick commerce have the ability to separate themselves in a saturated marketplace.

Quick commerce aims to reduce the delivery time of products and make the shopping process smoother for customers. This includes optimizing the checkout process and using localized warehouses to ensure products reach consumers quickly.

Quick-delivery companies can fulfill customer demands by offering a wider array of products that may be delivered within a shorter timeframe.

Quick commerce initiatives are to penetrate the urban markets more effectively, where the demand for fast delivery is high.

As the quick commerce market expands, companies aim to grab market share from traditional retailers and other e-commerce platforms by addressing the selling points of speed and convenience.

Quick commerce often leads to a higher order value due to impulse buying behavior induced by fast delivery options. Promotions and targeted marketing campaigns spur sales growth.

Quick commerce companies focus on optimizing supply chains and managing their inventory. This includes using data analytics for demand forecasting and maintaining localized inventory to minimize costs.

Business Model Analysis

Inventory Management

Micro-Fulfillment Centers or Dark Stores: Q-commerce companies use dark stores strategically located to provide speed in order fulfillment. Micro-fulfillment centers are smaller than conventional warehouses and hold high-demand inventory, so they allow the quick picking and packing.

Blinkit focuses on maintaining an inventory of around 2,000 high-demand items, reducing storage costs and optimizing space in urban areas.

Q-commerce firms can cater to specific neighborhoods. This hyperlocal approach minimizes the distance between the fulfillment center and the customer.

Technology Stack

Q-commerce relies heavily on user-friendly mobile apps that facilitate easy browsing, ordering and payment. These apps often include features such as product recommendations, order tracking and real-time updates.

Advanced algorithms optimize delivery routes to ensure that drivers complete orders in the shortest time possible.

Seamless payment integration is also crucial for rapid transactions. Most Q-commerce platforms provide various payment options such as digital wallets and credit/debit cards to enhance customer convenience.

Delivery Logistics

Q-commerce companies frequently use a combination of owned and contracted delivery fleets. Effective fleet management systems monitor deliveries in real-time.

Many Q-commerce companies use gig workers for last-mile delivery, which enables them to scale their workforce flexibly in line with changes in demand. This helps them keep their operational costs low while still being able to deliver at a speed customers expect.

Revenue Streams

Quick commerce companies usually sell products that are higher margin, such as electronics, beauty products and personal care items. The idea is to increase revenue per order and overall margins.

The rapid delivery model encourages impulse buying since consumers are willing to pay a premium for immediate access to products. This behavior can boost sales volumes and revenue.

In-App Advertising: Many Q-commerce platforms have begun monetizing their user base through advertising. This includes product listings and display ads within their apps.

The other sources of revenue, according to estimates, may contribute as much as 10-20% of the total revenue in a leading player like Blinkit and Zepto.

Advertise on quick commerce platforms can have high margins that lie between 90% and 95%.

Quick commerce companies are experimenting with a subscription model, offering perks such as free delivery or exclusive discounts for a month.

Other companies are providing logistics capabilities as a service to other businesses. In doing so, they can tap into additional revenue streams through their established delivery networks.

Quick commerce companies can analyze purchasing behaviors and trends by accessing vast amounts of consumer data. It is useful for brands looking to target specific demographics or optimize their marketing strategies.

Target Audience in Quick Commerce

Currently, the user penetration rate for quick commerce in India is 1.8%, which is expected to increase to 4.0% by 2029.

By 2028, India’s Q-commerce market will have around 56.4 million users.

Sales increased, reaching a rate of over 280% during the past two years, the quick commerce industry reports. The Gross Merchandise Value rose from $0.5 billion in FY22 to $3.3 billion in FY24.

Conventional e-commerce grew at an annual growth rate of 14%. However, Q-commerce increased by 73% on an annual basis for the fiscal years 2023-24.

Millennials and Generation Z constitute the customer base of quick commerce. Millennials and Generation Z are natively digital who grew up using technology. They get very comfortable shopping through the use of mobile applications and platforms.

Youth professional individuals in the urban center will lead very hectic lives requiring the need to find easier means of buying groceries among other essentials.

College students, especially those living away from home, often use quick commerce for their daily needs, appreciating the fact that they can order things without having to plan ahead.

Customers in this category prefer instant access to products. They make impulse buys and rely on quick delivery services to meet their needs without delay.

Users tend to be loyal to specific platforms that they find reliable, preferring to stick with familiar services rather than comparing prices across different providers.

Women make up a huge portion of the Q-commerce audience, especially in grocery shopping, as they are often responsible for household purchases. Their engagement with quick commerce platforms is driven by the convenience of fast deliveries for everyday essentials.

Major urban cities, which are large metropolitan areas, primarily Mumbai, Delhi-NCR, Bangalore, and Chennai, form the bulk of the quick commerce primary market. These urban locations are marked by high population densities and a strong demand from consumers for rapid delivery services.

Urban Penetration

The quick commerce services are quickly adopted in the metropolitan cities such as Mumbai, Delhi, and Bengaluru in urban areas.

Large amounts of these geographies use Q-commerce for grocery and commodity necessities deliveries through just one-time to a few times a week exposure, with many consumers using them multiple times a week for necessities.

The most significant usage of quick commerce in metro cities is by Millennials and Gen Z, who love technology and value speed above all else. According to a study, 60% of Millennials prefer using Q-commerce over traditional store shopping.

Major players such as Blinkit, Zepto and Swiggy Instamart have invested much in dark stores and logistics to cater to urban demands. These companies have expanded their operations within metropolitan areas.

Urban consumers are increasingly doing impulse buying through quick commerce platforms with 31% relying on these services for grocery needs and 39% using them for top-up purchases. Demand for ready-to-eat meals and snacks is huge in the urban environment as well.

Suburban Penetration

Suburban locations have a slower penetration rate for quick commerce. Though there is interest, many residents of Tier II cities still like to shop the traditional way at local markets or at retail chains like DMart because of the habit and value perceived in shopping.

According to surveys, only a minute portion of Gen X and Millennials in smaller towns use quick commerce services. For example, in smaller towns, people residing in cities like Kanpur tend to prefer shopping at local stores rather than depending on applications for grocery shopping.

Quick commerce companies will find challenges in suburban markets where penetration of smartphones is relatively lower, consumers have different shopping behaviors and, therefore, may require delivery models that suit different types of buying behavior.

Market Segmentation in Quick Commerce in India

1. Market Size and Growth Projections

The Q-commerce market in India is expected to grow from USD 3.34 billion in 2024 to about USD 9.95 billion by 2029, representing a compound annual growth rate of more than 4.5% over the period.

Other estimates predict even steeper growth rates, and projections show that CAGR is nearly 27% between FY22 and FY27.

2. Segmentation by Product Category

3. Segmentation by Company Type

• Pureplay Companies: Pureplay companies are dedicated Q-commerce platforms such as Zepto and Blinkit that operate purely on fast delivery services.
• This firm of Non-Pureplay companies founded e-commerce portals including Amazon and Flipkart which entered into the quick commerce sector too.

4. Geographic Segmentation

5. Consumer Behavior Insights

Average order value has almost quadrupled to in this space from INR 250 to approximately INR 625. Customers being open for a premium on services were available for the payment so the sector is showing strong growth.

Key Performance Indicators in Quick Commerce

1. Delivery Times

Average Delivery Time: This metric measures the average time taken from order placement to delivery at the customer’s doorstep. Quick commerce companies aim for delivery times between 10 to 30 minutes.

On-Time Delivery Rate: This KPI tracks the percentage of orders delivered within the promised time frame. High on-time delivery rates are important for customer satisfaction and retention.

2. Customer Satisfaction Scores

Net Promoter Score (NPS): This score measures customer loyalty by asking how likely customers are to recommend the service to others. The higher the NPS, the better the customer satisfaction.

Customer Satisfaction Score (CSAT): This is usually collected through post-delivery surveys, asking customers to rate their satisfaction with the service on a scale. Companies want high CSAT scores to ensure repeat business.

3. Order Volumes

Total Orders Per Day: The number of orders processed on a daily basis helps companies understand demand patterns and manage their inventory effectively.

Average Order Value: This is the average revenue generated per order. By mid-2024, Blinkit had reported an AOV of around INR 625, which was an increase from INR 250 earlier.

4. Operational Costs and Margins

Cost Per Order: This KPI will give the total operational cost for each order delivered by taking into account the logistic cost, warehousing, and the cost of labor. Reducing this cost is a good tool in achieving profit.

Gross Margin: It compares the difference between the revenue and the cost of goods sold as a percentage of revenue. A greater gross margin means higher profitability.

5. Benchmarks Achieved and Exceeded

Companies can compare the KPIs to industry benchmarks for judging how they compare to others.

Most of the Q-commerce firms have also indicated an upsurge in the sales and volumes of orders. Their sales had seen more than 280% rise over two years.

Regulatory Challenges in Quick Commerce

1. Licensing and FDI Regulations

Inventory-Based Model Issues: Quick commerce companies are usually operating dark stores, which act as warehouses for speedy delivery. However, the inventory-based models are strictly not allowed for foreign-invested e-commerce ventures under India’s e-commerce policy.

The All India Consumer Products Distributors Federation has also lodged complaints against Q-commerce companies claiming that they violate FDI regulations by taking control of inventory in dark stores.

Complaints and Inquiries: AICPDF has presented its complaint to the Ministry of Commerce and the DPIIT that inquiries should be made on Q-commerce platforms’ business models.

The complaints are passed to the CCI, as an opportunity to examine infringement in a competition law case.

2. Labor Laws

Gig Economy Classification: Many Q-commerce firms classify delivery personnel as gig workers and not full-time employees. Classification into gig workers is problematic with regards to the welfare rights and job security of such workers.

As the size of the gig economy increases, calls are growing for stronger regulatory efforts to protect these workers through minimum wage guarantees and social security benefits.

Compliance with Local Regulations: Q-commerce companies also have to comply with local labor laws, which differ from state to state in India.

3. Food Safety Regulations

Food Safety Standards Authority of India (FSSAI) Compliance: With the quick commerce platforms offering food products, the regulatory bodies like FSSAI are questioning them.

Recent discussions have concerns about compliance with food safety standards including issues related to the expiry dates and shelf life of packaged food products.

The FSSAI has called for increased surveillance on warehouses and facilities used by Q-commerce firms to ensure adherence to safety protocols.

4. Market Access and Competition

Restricted Market Access: This has been said to limit access to the market for other sellers through exclusive agreements with only selected sellers. It is deemed unfavorable to traditional retailers and small businesses.

Predatory Pricing Practices: Quick commerce companies usually engage in deep discounts that are funded by foreign investments to attract customers.

Market Share, Customer Retention, Revenue Growth and Profitability in Quick Commerce

1. Market Share Gained

As of December 2024, the market share distribution among major players is as follows:

• Blinkit (Zomato): 45%
• Swiggy Instamart: 27%
• Zepto: 21%
• BigBasket (BB Now): 7%.

Zepto has shown huge growth increasing its market share from 15% in 2022 to about 30% in early 2024.

2. Customer Retention Rates

Quick commerce companies rely on increasing customer loyalty with a combination of loyalty schemes, tailored marketing and improved delivery times.

Retention rates are not generally publicly disclosed.

High scores for customer satisfaction are positively associated with high retention rates. Companies like Zepto have used the speed of service to help drive repeat purchases.

3. Revenue Growth and Profitability

The combined revenue of Blinkit, Swiggy Instamart and Zepto crossed $1 billion in FY24. The Q-commerce industry has witnessed a 280% growth over the last two years.

Gross Merchandise Value: The GMV for quick commerce jumped to about $3.34 billion in FY2023, and it is estimated to reach nearly $9.95 billion by 2029, at a CAGR of more than 4.5%.

Zepto reported revenue growth of more than 1,000% during FY2023, outperforming competitors like BigBasket, which grew only by 5%.

Funding Trends in Quick Commerce

In terms of funding, Q-commerce companies have increased investment with the sector becoming more focused on operations – especially dark stores.

The company Zepto took its funding rounds in several chunks over six months and summed it to raise USD 350 million, that would be put toward bettering its infrastructure and logistics capabilities.

Overall, funding for Indian startups reached $7.6 billion by September 2024, a recovery from previous downturns, although early-stage funding has softened compared to previous years.

Venture capitalists are targeting specific segments within Q-commerce. For example, ice cream startups have seen funding due to their alignment with quick commerce trends.

Ice cream startups raised approximately $26.5 million in 2024, driven by increasing impulse purchases that quick delivery services can enable.

Also Read: Latest Kenya Startup News, Funding Updates and More – November 2024

Company History and Founding Story

1. Blinkit

Grofers was the original name for Blinkit. Albinder Dhindsa and Saurabh Kumar co-founded Blinkit in December 2013. The two men first met while working at Cambridge Systematics in the late 2000s, when they identified gaps in the grocery delivery market within the hyperlocal space.

The founders envisioned a platform that streamlined delivery from local merchants to consumers. They launched their service with a focus on grocery deliveries, initially testing their model in the Delhi NCR region.

After years of operation as Grofers, the company began implementing a rapid delivery model by opening dark stores across major cities.

On December 13, 2021, Grofers rebranded itself as Blinkit. This rebranding coincided with their expansion into more cities and an increased focus on delivering a wide range of products quickly.

Blinkit has raised nearly $1 billion from various investors, achieving a valuation of $1.01 billion. The company has received huge financial backing from investors including SoftBank.

In June 2022, Zomato acquired Blinkit for approximately $569 million.

As of now, Blinkit is already operational in over 38 cities across India and sees more than 1.25 lakh orders per day.

2. Zepto

Aadit Palicha and Kaivalya Vohra have founded Zepto in the month of April 2021.  The two founding members were just 19 years old and had already dropped out of their studies in computer science from Stanford University to pursue their dream of entrepreneurship.

Their first attempt was KiranaKart, a venture in which they would deliver groceries within 45 minutes. It did not yield the kind of success desired but helped them gain many learnings.

Aadit Palicha was born in 2001 in Mumbai. As a child, he always had an inclination towards technology and entrepreneurship. At 17, he founded his first startup: GoPool, a carpooling app.

Kaivalya Vohra also from Mumbai shared the same interest in technology. Both were attending school in Dubai when they returned to India during the pandemic.

The idea for Zepto came out from the problems they were facing during lockdowns when the traditional grocery delivery services were slow and inefficient. They realized a gap in the market for quick grocery deliveries.

Zepto was created to get groceries to the doorstep within 10 minutes. The service leveraged a network of dark stores strategically placed across locations for quick fulfillment.

Zepto was valued at $200 million after one month after it was launched, and it raised $570 million in funding by September 2021.

The company completed 1 million orders by partnering with several grocery companies that focused on customer satisfaction and feedback to improve its services.

Zepto became India’s first unicorn of 2023 with a valuation of $1.4 billion after raising more funds. In June 2024, it raised another $665 million, taking its valuation to around $3.6 billion.

The founders Aadit Palicha and Kaivalya Vohra were named India’s youngest billionaires because of their success with Zepto.

3. Swiggy InstaMart

Swiggy Instamart is an extension of Swiggy’s core food delivery business launched in August 2020 during the COVID-19 pandemic. Its launch marked Swiggy’s entry into the quick commerce grocery delivery space to provide rapid access to daily essentials.

It is owned and operated by Sriharsha Majety, Nandan Reddy and Rahul Jaimini who founded Swiggy in 2014. Founded with food delivery, it rapidly built on the idea and captured top markets by entering more than 600 cities and millions of restaurants and delivery partners in a large network.

Consumer demand for the speedy delivery of grocery orders had increased manifold as people preferred to stay at home during the pandemic. Noticing this trend, Swiggy extended its delivery network into groceries too by using its logistic strength for fast delivery time.

Instamart utilizes dark stores, strategically placed warehouses that allow for efficient and quick order fulfillment.

Initially promising deliveries within 30-45 minutes, the service has since improved efficiency, achieving delivery times of 15-30 minutes through enhanced logistics and technology .

Since its launch, Instamart has grown rapidly, now serving customers in 28 cities across India. It has become a key player in the quick commerce sector competing with other major players like Blinkit and BigBasket.

As of late 2024, quick commerce is contributing around 40% to Swiggy’s consolidated revenue.

4. BigBasket (BB Now)

BigBasket is officially known as Supermarket Grocery Supplies Pvt. Ltd. It is India’s largest online grocery delivery service. Its journey began in 2011, but the roots of the company trace back to 1999 when a group of five friends, Hari Menon, V.S. Sudhakar, V.S. Ramesh, Vipul Parekh and Abhinay Choudhary launched an online retail venture called Fabmart.

Although ahead of its time, Fabmart struggled to gain traction and eventually transitioned into a physical retail chain called Fabmall.

The founders’ first attempt at online retailing through Fabmart was during the dot-com boom. Despite their innovative approach, they faced challenges that led to the closure of the business. However, they gained experience in e-commerce during this period.

Following the failure of Fabmart, the team decided to refocus and revive their earlier idea of an online grocery store. In December 2011, they launched BigBasket.com to meet the increasing demand for online grocery shopping in India.

BigBasket operated on a purchased-to-order model where products were picked up from retailers and delivered directly to customers. They gradually moved to an inventory-based model, purchasing products directly from suppliers and storing them in warehouses for quicker delivery.

BigBasket quickly became a household name in India, capitalizing on the increasing smartphone penetration and changing consumer habits.

As of 2023 it was getting above 150,000 daily orders offering its customers over 100,000 products within different segments.

5. Flipkart Minutes

Flipkart launched Flipkart minutes as their ultra-fast grocery delivery and basic essentials delivery option within just 8-16 minutes.

Flipkart was founded by Sachin Bansal and Binny Bansal, alumni of the Indian Institute of Technology, Delhi in October 2007. Earlier, they both worked at Amazon and came to understand e-commerce inside out.

The company started selling books online. The idea was simple: customers could order books through Flipkart and have them delivered directly to their homes. This concept was novel in India at the time, where online shopping was still in its infancy.

Flipkart started from a modest two-bedroom apartment in Koramangala, Bengaluru, with an initial investment of INR 4 lakh from their families.

In its first year, the company managed to make only around 20 shipments, but it picked up quickly. It received around 100 orders per day by 2008.

In 2009, Flipkart secured its first investment of $1 million from Accel Partners. Till 2011, the company had expanded its products beyond books to include electronics, fashion, and home essentials.

Flipkart brought Cash on Delivery and good return policies to help instill consumer trust in shopping online, especially when the items were of high value such as electronics.

By 2012, Flipkart became a unicorn company with a valuation above $1 billion and emerged as one of India’s most valuable startups.

Flipkart acquired Myntra in 2014 and Jabong in 2016, which enabled the company to capture over 60% of the fashion e-commerce market in India.

When Amazon entered the Indian market around 2013, Flipkart faced competition. However, it managed to maintain its leadership position through continuous innovation and customer-centric strategies.

In 2018, Walmart acquired Flipkart for about $16 billion, valuing the company at over $20 billion.

Flipkart launched Flipkart Minutes in August 2024.

Number of Dark Stores

Zepto: It runs about 250 dark stores across all major cities such as Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Pune and Chennai.

Blinkit: In order to facilitate its quick delivery model, Blinkit has set up approximately 500 dark stores across various urban centers.

Total Dark Stores: The total number of dark stores run by the leading Q-commerce players including Blinkit, Zepto, Swiggy Instamart and Flipkart Minutes is estimated to be about 1,200 across India.

Fleet Size

Companies such as Blinkit and Zepto make use of a massive amount of delivery personnel. Blinkit uses around 14,000-15,000 delivery agents to deliver orders quickly.

Dark stores have a radius of 2 to 5 kilometers that can be delivered within a densely populated urban area in the shortest time possible.

Customer Behavior Insights

25-34 Age Group: This age group is the largest user base for Q-commerce, which is approximately 36.35% of the total users.

18-24 Age Group: This segment of users comprises around 28.73% of people, with strong reliance on quick commerce among the youth population.

Total Users: Around 26.2 million users in India by 2024 are likely to grow up to 60.6 million users by 2029.

While specific income data is less often reported, it is largely known that Q-commerce is more targeted towards urban consumers with disposable income who can afford the premium delivery services. This cuts across young professionals and students who live in metropolitan areas.

The user base is male-dominant, and platforms like Blinkit report about 62.57% male users and 37.43% female users. The demographic of Zepto follows this trend with about 64.05% male and 35.95% female users.

Peak ordering times usually occur in the evenings, especially between 7 PM and 10 PM, as consumers look to meet their dinner and late-night snacking needs.

There is usually a peak in orders during weekends and festive seasons when consumers are likely to host gatherings or need extra supplies for celebrations.

About 44% of customers order groceries mainly through quick commerce services.

There is also an increasing demand for snacks and beverages, especially among the youth who are always in need of convenience for fast food or refreshments.

Although this segment is not as significant as grocery sales, it is catching up as consumers appreciate the speed of delivery for their day-to-day needs.

Over time, the AOV has increased with Blinkit reporting an AOV of around INR 625, which is almost three times the earlier level of INR 250.

App Downloads

Zepto: As of December 2024, Zepto is the current front-runner in the quick commerce sector with close to 27.7 million downloads around the world.

Swiggy Instamart: The Swiggy application, with Instamart, has seen close to 9.8 million downloads through Google Play and Apple’s App Store.

Blinkit (Zomato): Blinkit has gained close to 6.6 million downloads.

BigBasket (BB Now): Tata’s BigBasket, which integrates BB Now as part of the main app, has earned close to 3.5 million downloads.

Dunzo: Dunzo has less than 1 million downloads, a smaller footprint compared to its competitors.

Operations and Logistics

Supply Chain and Inventory Data in Quick Commerce

Dark stores now offer between 6,000 to 15,000 SKUs per store compared to the previous range of 2,000 to 4,000 SKUs a few years ago. This expansion allows Q-commerce players to provide a wider variety of products.

Q-commerce companies are focusing more upon maintaining high stock turnovers per period to ensure freshness while lowering wastage. Though in details, specific turnover can depend on the product categories also.

For perishables as fruits and vegetables Q-commerce platforms are investing heavily on cold chain logistics ensuring less spoilage and a decent quality.

The average inventory days for dark stores are lesser as compared to the traditional formats of retail: Fresh products usually result in an inventory turnover that is around 1-2 days. Packaged grocery staples may have a little extended turnover period that would come around 4-5 days.

Number of Delivery Personnel

Blinkit as around 14,000 to 15,000 delivery agents all over its operating locations and ensures timely deliveries.

Zepto states having close to 10,000 delivery personnel, which facilitates it to serve a great number of orders within quick time.

Swiggy Instamart leverages the massive chunk of Swiggy’s delivery fleet, which stands in thousands, though specific numbers are not publicly known.

Cost Per Order Delivery

Cost per order delivery is quite variable, depending on various factors including the order value and the Q-commerce platform being used.

For orders less than INR 50, the delivery fee is between INR 10 and INR 50. Blitz charges a fee of INR 75 per order, nearly 20% more than a standard same-day or next-day delivery.

Platforms such as Zepto charge additional fees to recover their cost such as: There is a platform fee for selected users at INR 2 per order.

A late-night handling fee of INR 15 for orders placed after 11 PM. Delivery fees can range from INR 5 to INR 28, depending on cart value.

Latest News in Quick Commerce 2024

Amazon is set to introduce its quick commerce vertical in early 2025 focusing on grocery deliveries within 20 to 30 minutes. The company has expanded its grocery service to 130 cities.

Tata’s BigBasket has fully embraced quick commerce after successful trials of 30-minute deliveries. It plans to deploy 500-600 dark stores nationwide and plans to generate $1 billion from this segment in the current financial year.

Flipkart has launched its Minutes service, which promises delivery of various products within 10 minutes in Delhi NCR, after a successful pilot in Bengaluru. The service also allows users to cancel orders if expectations are not met.

Reliance Retail’s JioMart is testing quick commerce in Mumbai with the promise of delivery in under an hour, and said it aims to cut this down to 30-45 minutes. The company will rely on Reliance’s huge store network for fulfillment.

Nykaa has launched a quick delivery pilot in Mumbai, with a 10-minute delivery window for some beauty products. Analysts warn this will be expensive to fulfill.

Ola intends to re-enter the fast-commerce space by establishing automated dark stores as a result of information collected from its previous venture Ola Dash.

New player on the block: Slikk, founded in August of 2024 aims at delivering branded fashion in within 60 minutes based upon machine learning for delivering precise shopping experiences.

The quick commerce market is expected to capture around $1.28 billion of Kirana sales by the end of 2024.

Quick-commerce platforms such as Swiggy Instamart and Zomato are scaling up their 24/7 delivery services during the festive season to cater to increased consumer demand for late-night orders.

Dunzo Daily has improved its logistics for grocery and essentials delivery in 35-40 minutes. The AI-powered logistics help it optimize delivery routes and manage demand.

Zomato’s quick commerce app Blinkit has partnered with Apple Premium Reseller Unicorn Infosolutions to offer the iPhone 16 series on its platform alongside discounts and EMI options.

Swiggy Instamart is using the existing infrastructure to enhance grocery delivery services within 45 minutes across 18 cities.

The quick commerce market in India is estimated to reach $5 billion by 2025 and nearly $10 billion by 2029.

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