REFLECTIVE NOTE ON QUICK COMMERCE IN INDIA
BY PRANAYDEEP SINGH KALRA
The quick commerce industry in India is one of the fastest-growing segments in
the e-commerce industry. The rise of online shopping and increasing demand
for faster delivery has created a significant opportunity for quick commerce.
However, this industry is still in its early stages, and several famous companies
that operate in this space are currently operating at a loss. This is because these
companies are investing heavily in expansion and customer acquisition and are
not yet focused on generating profits.
Despite the potential for growth, the feasibility of quick commerce depends on
several factors such as the availability of products, delivery networks, and the
reliability of the technology used to manage orders and track deliveries. This
industry also relies heavily on the ability of companies to optimize their
operations to meet the high demands of customers.
According to a report by RedSeer Consulting1, the quick commerce industry in
India could grow to become a $5 billion market by 2025. However, this growth
will be driven by increasing demand for fast and convenient delivery services,
as well as the emergence of new technologies and business models.
On the other hand, quick commerce services are heavily reliant on delivery
partners, which can result in delayed deliveries or cancellations if there are
logistical issues. The recent strike of Blinkit's delivery partners2 is a clear
example of how price competitive the industry is.
The most famous quick commerce companies in India, such as Blinkit, Grofers,
Swiggy, and Dunzo, are currently operating at a loss. Their high valuations are
based on heavy funding and large customer bases. However, customer loyalty is
a myth in any online commerce, and anything that's cheaper with some
reliability attached to it starts picking up market share in India.
Due to the competitive and cash-burning nature of the quick commerce
industry, those who are able to withstand the pressure of ultra-fast deliveries
and emerge successful are likely to be the ones equipped with robust financial
1
Startup Outlook India. (2021, April 30). Will India's Q-Commerce Segment Be Defined Only By Blinkit and
Zepto? Retrieved from https://startup.outlookindia.com/analysis/will-india-s-q-commerce-segment-bedefined-only-by-blinkit-and-zepto--news-6821.
2
Mishra, A. (2021, October 10). Delivery workers' strike shuts more than 100 Blinkit 'dark stores' in Delhi NCR.
The Economic Times. Retrieved from https://economictimes.indiatimes.com/tech/technology/deliveryworkers-strike-shuts-more-than-100-blinkit-dark-stores-in-delhi-ncr/articleshow/99474721.cms
support and well-established delivery network.
In summary, while the quick commerce industry in India is growing rapidly, it
is still facing several challenges, including heavy losses and a competitive
market. the feasibility of the quick commerce industry in India will depend on
the ability of companies to navigate these challenges and provide a positive
customer experience while maintaining financial sustainability.