Outlook Business Desk
Quick commerce involves the ultra-fast delivery of small orders, such as groceries and daily essentials, within 10 to 30 minutes. The sector has experienced remarkable growth, with the market size projected to reach $9.95 billion by 2029. Despite this rapid expansion, the penetration of quick commerce remains relatively low, currently covering only 7% of the total addressable market, which is valued at $45 billion
Zepto, known for its fast delivery service, is in discussions to raise $100 million and plans to go public in 2025. Blinkit, acquired by Zomato, is valued at $15.4 billion while Swiggy Instamart is focusing on scaling coverage and enhancing its inventory. Flipkart Minutes is set to increase its network to 100 dark stores during the festive season. Amazon's Tez, will utilize its logistics infrastructure and consumer data to offer speedy deliveries
Myntra M is exploring the quick commerce space by focusing on fast fashion deliveries, while Swish aims to revolutionize meal delivery with 10-minute delivery of quick-to-prepare dishes. Rapido is expanding its services to include quick commerce. Additionally, PhonePe is entering the fast-delivery sector to tap into the growing market as well
The rapid growth of quick commerce is credited to a shift in consumer behavior, with increasing demand for speed and convenience, along with urbanization and digitalization are also playing a key role. The sector expanding its offerings to higher-value items like electronics and fashion, further fuels its growth
Consumer expectations are shifting towards rapid access to a wide range of products, including high-value items like iPhones and gold coins. Quick commerce is expanding beyond groceries into categories like fashion and electronics. This growing sector, with its speed advantage, poses a potential threat to traditional e-commerce giants like Flipkart and Amazon
The competition for leadership talent is fierce, with companies offering high compensation packages to attract top executives from each other. New entrants face challenges in a crowded market, particularly in smaller cities
Flipkart has launched Flipkart Minutes while Amazon plans to introduce Tez, using its infrastructure to compete in the fast delivery market. Other key moves include Tata Group’s Neu Flash, transitioning BigBasket to quick commerce, and Ola entering dark store quick commerce with plans to automate services via ONDC
The quick commerce sector in India is experiencing explosive growth, with companies expanding into groceries, electronics, fashion, and more. As the sector evolves services are moving beyond essentials to include higher-value items like gadgets and fashion. Increased investments are driving innovation in logistics and delivery technology, further disrupting traditional retail and e-commerce models