Indepth: Sustaining the accelerated growth of Quick Commerce, experts weigh in

Quick commerce (Q-commerce) is revolutionizing India’s retail landscape, emerging as one of the most transformative forces in modern shopping. As demand for faster delivery escalates, Q-commerce is reshaping how consumers purchase everything from groceries to electronics, fundamentally altering retail dynamics.

The rapid growth of Q-commerce is underscored by market projections. The sector is expected to soar from $6.1 billion in 2024 to a staggering $40 billion by 2030, according to Datum Intelligence. This growth reflects the increasing consumer demand for ultra-fast delivery services, with products reaching customers within 10-30 minutes. Industry leaders like Blinkit, Zepto, Swiggy Instamart, and Flipkart Minutes are seizing significant market share, offering unparalleled convenience and speed that traditional retail can’t match.

What began as a humble initiative by 18-year-olds Aadit and Kaivalya Vohra—delivering groceries and medicines by bicycle to their neighbours—has blossomed into Zepto, a startup now valued at a whopping Rs 30,000 crore in just around three years. This meteoric rise exemplifies the speed and scale of the Q-commerce revolution.

Market Trends

Q-commerce is driving a noticeable shift in consumer behavior. Nearly 46% of consumers report reduced spending at local Kirana stores, indicating a clear preference for quicker alternatives. The sector is set to capture $1.28 billion of Kirana sales by 2024, representing 21% of the total sales on Q-commerce platforms. Additionally, 75% of online grocery buyers are spending more on these platforms, with average order values often exceeding Rs 400, much higher than traditional retail purchases.

A key reason behind this rapid adoption is Q-commerce’s ability to offer competitive pricing by eliminating intermediaries that traditional retail often relies on. As the sector is expected to grow by 74% in 2024, with a compound annual growth rate (CAGR) of 48% from 2023 to 2028, Q-commerce is on track to become the fastest-growing channel in India's retail market. Initially dominated by groceries, the sector has expanded to include electronics, fashion, medicines, and even pet supplies, signaling the dawn of a new era in on-demand retail.

Q-Commerce: Revolutionizing India’s Retail Landscape

The rise of quick commerce (Q-commerce) has triggered a seismic shift in India’s retail industry, merging the immediacy of on-demand services with the broad reach of traditional e-commerce. With promises of delivering products—from groceries and medicines to electronics and even festive bundles—within 30 minutes, Q-commerce is setting new benchmarks for consumer convenience.

As urban lifestyles grow busier, Indian consumers are increasingly opting for platforms that offer faster service. This change is reflected in the rapid growth of Q-commerce, which is projected to expand from $6.1 billion in 2024 to a staggering $40 billion by 2030.

Industry Leaders Weigh In

Chandan Mendiratta, Chief Brand & Culture Officer, Zepto, notes, “India’s quick commerce revolution is fundamentally reshaping the way we shop by addressing the most valuable modern currency: time. By curating comprehensive assortments—from daily essentials to festive-specific bundles like Karva Chauth offerings—quick commerce platforms eliminate the need for multiple store visits or lengthy delivery waits. This shift ensures that consumers, especially busy urban professionals and young families, can meet all their needs seamlessly, saving time for what truly matters.”

Zepto, one of the leading players in this space, has built a reputation for delivering not just essentials, but tailored experiences that resonate with modern consumers.

Somdutta Singh, Founder & CEO, Assiduus, Angel Investor, observes, “It is such a cliché to say that India’s retail landscape is rapidly evolving, because the transformation is happening right in front of our eyes. Quick commerce is increasingly overlapping with traditional e-commerce, catering to consumer demand for instant deliveries. Especially for essentials and perishables, 46% of consumers are reducing purchases from local Kirana stores in favor of faster options. This is not just a trend—it’s the future of retail.”

Singh highlights how Q-commerce is creating a new normal in consumer behavior, emphasizing speed and efficiency over the traditional model of retail shopping.

Major Players and Strategies Driving India’s Q-Commerce Boom

India’s Q-commerce landscape is evolving rapidly, with several prominent players employing innovative strategies to capture the growing market. These companies, including Dunzo, Swiggy Instamart, Zomato’s Blinkit, BigBasket, Flipkart Minutes, and Myntra’s M-Now, are redefining convenience through cutting-edge technology, robust supply chains, and expedited delivery systems. Here’s a closer look at their approaches:

Dunzo

Dunzo is leveraging its hyperlocal delivery model to cater to diverse needs, ranging from groceries and food to pharmaceuticals and pet supplies. The company ensures deliveries within minutes, making it a trusted choice for urban consumers.

Swiggy Instamart

Swiggy Instamart builds on Swiggy’s existing food delivery infrastructure, offering a vast array of daily essentials. Its aggressive expansion and focus on convenience have positioned it as a key player in Q-commerce.

Blinkit (formerly Grofers)

Blinkit has mastered large-scale inventory management and logistics to provide rapid delivery in multiple cities. Its customer-centric approach aligns with the increasing demand for speed and efficiency.

BigBasket’s BB Now

BigBasket, a pioneer in online grocery delivery, is making significant strides in Q-commerce with BB Now. This service promises deliveries in under 30 minutes and features a curated selection of over 3,000 items, including fresh produce, daily essentials, and ready-to-eat meals.

Flipkart Minutes

Flipkart is expanding its ecosystem with Flipkart Minutes, emphasizing hyper-fast delivery across 50+ product categories. The initiative supports its workforce by creating additional income opportunities through increased order volume, particularly during events like the End of Season Sale (EOSS).

Pallavi Saxena, Senior Director, Flipkart Fashion, believes that enhanced features will give existing shoppers new reasons to visit the app daily while onboarding new customers. “With a wider range of the latest fashion, footwear, and accessories supported by cutting-edge technology, we aim to elevate the shopping experience,” she adds.

Myntra’s M-Now

Myntra has joined the Q-commerce revolution with M-Now, offering deliveries starting in 30 minutes for over 10,000 styles in fashion, beauty, accessories, and home. This unique service is set to scale to over 100,000 styles in the coming months.

Nandita Sinha, CEO, Myntra, remarks, “Fashion thrives on diverse selections that empower customers to style their complete look. M-Now will play a transformative role in advancing fashion possibilities and reshaping India’s lifestyle shopping experience.”

While speed remains a key focus, these companies are also prioritizing personalization to meet customer expectations. Features like free delivery, bundled discounts, and user-friendly interfaces are designed to attract tech-savvy consumers, particularly in metro areas. As the Q-commerce boom continues, these strategies will likely play a pivotal role in shaping India’s retail landscape.

Q-Commerce: Beyond Groceries

The festive season has marked a turning point for quick commerce (q-com), with big FMCG names like ITC, Parle, and Mondelez collaborating with q-com platforms to offer gifting solutions. However, the revolution doesn’t stop at groceries.

Paragon Footwear steps into Q-Commerce

Paragon, India’s trusted footwear brand, has expanded into the quick commerce arena through partnerships with Swiggy Instamart and Zepto. This move caters to the growing consumer demand for on-demand, convenient footwear solutions. Sachin Joseph, Executive Vice President of Marketing and IT, Paragon Footwear, shares, “Our expansion at quick commerce platforms has proven to be a perfect fit, as we’re uniquely positioned to fulfill the urgent footwear needs of Indian consumers within minutes. With this rapid delivery model, Paragon is revolutionizing the traditional footwear retail paradigm.”

Blinkit welcomes Decathlon

Highlighting the versatility of q-commerce, Blinkit CEO Albinder Dhindsa recently announced on LinkedIn, “Decathlon is now available on Blinkit! Customers can now get sports and gym equipment, winter essentials, yoga needs, travel bags, and apparel for men and women—all delivered in 10 minutes!”

These developments showcase how q-commerce platforms are evolving beyond groceries, tapping into new categories and reshaping consumer convenience in India.

The COVID-19 Factor

The COVID-19 pandemic acted as a catalyst for the rapid growth of Q-commerce in India. With lockdowns and movement restrictions, consumers turned to digital platforms for essential items like groceries and medicines, as well as entertainment products. This shift, driven by safety concerns and the need for convenience, accelerated the adoption of Q-commerce services.

Highlighting this, Chandan Mendiratta, Chief Brand & Culture Officer, Zepto, says, “While the pandemic accelerated adoption across demographics, the habit of relying on quick commerce for everyday efficiency is here to stay.”

Somdutta Singh, Founder & CEO, Assiduus, adds here, “The pandemic significantly accelerated quick commerce adoption as consumers sought safe and convenient shopping options during lockdowns, shifting preferences towards online grocery purchases.”

The rise of Q-commerce also transformed shopping habits, extending beyond essentials to include apparel, smartphones, jewelry, and consumer durables. Platforms like Blinkit and Zepto have expanded their offerings to meet this demand, providing fast delivery for a wide range of products.

The infrastructure developed during the pandemic, including data analytics and automation, will continue to fuel Q-commerce’s growth, making it a central aspect of the retail experience moving forward.

Consumer Trends Powering Quick Commerce

Quick commerce is revolutionizing the way people shop by prioritizing speed and convenience. The model resonates deeply with consumers who value instant gratification, particularly among demographics like working professionals, college students, and young families in metropolitan areas.

Imagine a scenario: a young professional realizes they’ve run out of a key grocery item. Instead of heading to a store, they turn to a Q-commerce platform and have the item delivered within minutes. This instant solution is the hallmark of Q-commerce, which has rapidly gained traction in India’s urban markets.

Chandan Mendiratta of Zepto aptly notes: “India’s quick commerce shift ensures that consumers, especially busy urban professionals and young families, can meet all their needs seamlessly, saving time for what truly matters.”

Key Consumer Groups

Urban Professionals and Families

These groups appreciate the time savings and convenience that Q-commerce offers, allowing them to focus on more important priorities in their busy lives.

Emerging Markets in Tier 2 and 3 Cities

With improving internet connectivity, smaller cities are catching up to the Q-commerce trend. Somdutta Singh of Assiduus points out, “Quick commerce offers significant advantages such as convenience and time savings, particularly for younger, tech-savvy demographics.”

The era of instant gratification is here, and Q-commerce is leading the charge with its promise of convenience and immediacy.

Festive Seasons and Demand Surge

India’s vibrant festive season, encompassing celebrations like Diwali, Holi, and Durga Puja, brings with it a massive surge in consumer spending. This period of heightened activity significantly boosts demand for quick commerce services, compelling companies to ramp up operations and optimize their supply chains.

Scaling to meet Festive Demands

The festive season pushes Q-commerce providers to operate at their maximum capacity, often running 24x7 to cater to last-minute shopping needs. Chandan Mendiratta of Zepto explains: “The festive season amplifies this advantage, with companies operating 24x7 and tailoring personalized assortments to match cultural preferences, proving invaluable during high-demand periods.”

Strategic Measures for Seasonal Success

Supply Chain Optimization

To ensure seamless operations, providers enhance their supply chain networks, expand delivery areas into Tier II and Tier III cities, and bolster inventories.

Seasonal Promotions

Special discounts, bundled offers, and festive-specific assortments entice consumers to shop more through Q-commerce platforms during this time.

Employee and Partner Incentives

Offering rewards and additional benefits to gig workers during festive peaks ensures efficient and timely deliveries.

Cultural Tailoring

Platforms align their offerings with regional festivals, ensuring culturally relevant assortments are readily available.

As Somdutta Singh of Assiduus, points out, “The festive season drives surges in demand for quick commerce, prompting companies to expand delivery areas and increase inventory.”

With their ability to cater to last-minute needs and align with consumer expectations, Q-commerce platforms are becoming indispensable during India’s festive seasons. They not only redefine convenience but also transform how consumers approach holiday shopping.

Impact on Traditional Offline Stores

The rise of Q-commerce has significantly impacted traditional offline stores and neighborhood shops, challenging their conventional business models. As consumers increasingly opt for the convenience of online shopping, these stores face mounting pressure to evolve.

A report by Elara Capital highlights the gravity of this shift, revealing that India's three crore neighborhood grocery stores have experienced a 30% decline in sales since the COVID-19 pandemic. Furthermore, one in every four of these stores may face closure if Q-commerce continues to expand into non-metro markets.

However, local stores are actively responding to these challenges, leveraging their community presence and adaptability:

Adopting Digital Platforms: Many kirana shops and small retailers are transitioning to digital platforms, using tools like WhatsApp for orders and partnering with Q-commerce companies to enhance their delivery capabilities.

Building Delivery Networks: Some stores have established their own delivery systems to compete with the speed of platforms like Blinkit and Swiggy Instamart.

Enhancing Customer Experience: By focusing on personalized services and competitive pricing, traditional stores aim to retain and grow their customer base.

Somdutta Singh emphasizes that: “Traditional stores face challenges from quick commerce but can adapt by enhancing customer experience and integrating technology. Strategies like partnerships with delivery platforms could help them remain competitive.”

Tackling Logistical Challenges in Rural and Smaller Towns

Expanding into smaller towns and rural regions presents unique logistical challenges for Q-commerce companies. These areas often lack the infrastructure needed to support quick delivery models, such as well-established supply chains or dense urban populations. However, companies are overcoming these challenges by employing strategies tailored to local needs.

Hyperlocal Solutions for Regional Needs

Chandan Mendiratta of Zepto, explains how platforms are bridging gaps in rural and smaller town markets: “As platforms expand to smaller towns, they’re bridging gaps by offering hyperlocal solutions that cater to regional needs, ensuring no one is left behind in this time-first retail evolution.” This tailored approach is critical for success in areas where traditional retail infrastructure may be underdeveloped.

Expanding Dark Store Networks

Somdutta Singh highlights the logistics strategies companies are employing to overcome the unique challenges in these areas: “Quick commerce is expanding into smaller towns, presenting both challenges and opportunities. Companies are adapting by tailoring offerings to local preferences and enhancing logistical capabilities.” One key method involves expanding dark store networks—local hubs that act as fulfillment centers—to high-density regions. This strategic positioning allows for quicker deliveries and a more efficient supply chain, especially in areas with limited infrastructure.

Seasonal Demand and Consumer Durables

This expansion is particularly valuable for the consumer durables sector. For example, during seasonal peaks, products like heaters and fans see a surge in demand, and Q-commerce platforms can meet this demand by reaching underserved areas. 

The rise of quick commerce in India is transforming the retail landscape, providing consumers with unprecedented convenience while challenging traditional retail models. As companies continue to innovate and refine their strategies, Q-commerce is expected to play an increasingly significant role in India’s e-commerce sector. With the ongoing adoption of digital technologies, shifting consumer behaviors, and the growing demand for faster deliveries, the future of retail in India seems set to be shaped by the rapid pace of Q-commerce.

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