Quick Commerce services in India are at a crucial stage, similar to food delivery services a few years ago. The quick commerce sector in India has experienced remarkable growth, surpassing initial predictions. As per Redseer, the gross merchandise value (GMV) increased from a modest USD 0.10 billion in FY20 to an impressive USD 3.3 billion in FY24.

Datum Analysis predicts a further rise to USD 5.1 billion by 2024, indicating a strong 46% growth. Leading this growth are Blinkit, now under Zomato, Zepto, and Swiggy Instamart. These major players have quickly met the urban consumer demand for instant delivery, revolutionizing daily convenience in metropolitan areas.

However, Swiggy Instamart CEO Phani Kishan Addepalli offers a contrasting view. He reveals that Swiggy Instamart has reached 37 cities, including metros and Tier II cities, with what he refers to as ‘impressive’ response rates. Zepto has also expanded into Jaipur, while Blinkit is making inroads into new areas.

Rahul Taneja, a partner at Lightspeed India, a venture capital firm that has invested in Zepto, sees significant potential for profitability in India’s top 15 cities. 

However, he notes that success in this sector depends on the specific strategies of individual businesses. Another investor, who chose to remain anonymous, mentioned that while quick commerce could succeed in smaller cities, it might require adjustments such as fewer dark stores and potentially longer delivery times.

In Bengaluru, the adoption of quick commerce varies by neighbourhood. A local banker observed that in older parts of the city, many still depend on traditional grocery stores or wait for someone to bring back essentials. “I rarely see families in our area using these apps,” he remarked.

Datum Analysis reports that the demand for 10-minute deliveries with average product quality has increased between 2021 and 2024, with 73% of surveyed consumers willing to pay a premium for such convenience.

As quick commerce continues to develop, stakeholders believe its success may be mostly limited to India’s top cities. Only time will tell if this concept can gain traction beyond the metros and reach India’s diverse and extensive market.

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