Is India’s Quick Commerce Boom Superficial?

Is India’s Quick Commerce Boom Superficial?

KAKALI DAS

Need a healthy salad? Guess what? You can have it delivered in just 8 minutes. Craving for some fresh juice to go with it? Add it to your cart. Feeling adventurous and want to throw in a video game or a PS5? Yes, that’s possible too.

If you’re in India, you know exactly what we’re talking about. For our readers around the world – welcome to India’s Quick Commerce Revolution, popularly known as QCom.

A morning coffee, a forgotten textbook, or an emergency power bank – whatever you need can arrive at your doorstep in under 30 minutes. It’s quick, convenient, and transforming how we get things done.

Take New Year’s Eve, for example—quick commerce platforms saw record-breaking order volumes, far surpassing what they achieved in 2023. Over the past two years, their sales have skyrocketed by almost 280%.

In 2021, the total merchandise value was $500 million. By 2023, it had surged to $3.3 billion—a staggering 280% growth in just two years.

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Driving this transformation are platforms like Swiggy, Blinkit and Zepto, which have redefined delivery standards. Inspired by their success, others are jumping into the game—like Flipkart. In August, it introduced its rapid grocery delivery service, Flipkart Minutes.

Amazon is also planning to roll out a similar service this year, marking its debut in quick commerce globally. Fashion retailer Myntra is following suit, offering a 30-minute delivery option. Similarly, companies like Tata and Nykaa have also joined the fast delivery trend.

Everyone seems to be jumping on the bandwagon, eager to ride the quick-commerce wave. But the real question is—can this growth be sustained? Or is it simply a bubble on the verge of bursting? Here’s why!

The success of quick commerce depends on one critical factor: a solid infrastructure. This requires a network of micro-warehouses, commonly called dark stores, and efficient delivery systems. Both must be strategically located to guarantee lightning-fast delivery.

This isn’t a challenge in major urban centres like Bengaluru, Mumbai, or Delhi, where both demand and logistical capabilities are strong. However, the difficulty arises when you move to smaller cities. Expanding this model into Tier 2 and Tier 3 regions will be tricky. The costs will rise due to increased last-mile challenges, which is why many smaller towns and rural areas remain excluded from this trend.

In urban centres, however, it works like a charm due to the sheer convenience—this is its strongest selling point.

It’s a double-edged sword, though. While fast delivery makes platforms appealing, it also impacts their profitability. If the convenience fee is set too high, they risk losing customers; if it’s too low, they struggle to generate profits.

Take Zepto, for instance. Its revenue skyrocketed 14 times in 2023, but the losses followed suit. Zepto reported a loss of ₹390 crore in 2022, which surged to ₹1,272 crore in 2023.

While the model is appealing, platforms are losing money. So, how are they staying afloat? They’re surviving on external funding, with investors placing big bets on quick commerce. These investments are driven by growth potential rather than immediate profitability.

Platforms like Swiggy enjoy sky-high valuations, allowing them to secure cash injections to cover operational expenses. But this can’t go on forever—eventually, they’ll need to turn a profit.

Another major vulnerability is the delivery personnel, who are the backbone of quick commerce. They work long hours for low pay, with no job benefits or security. The attrition rates are alarmingly high. To retain workers, companies will need to offer more, or this model won’t be sustainable.

To sum it up, quick commerce is undoubtedly reshaping India’s retail landscape—getting a PS5 delivered in 10 minutes is impressive, no doubt. Right now, India’s QCom market is valued at $3.3 billion, and by 2029, it could reach $10 billion.

The CEO of Zepto believes quick commerce could soon rival e-commerce. This would be a major milestone for India and its digital ecosystem. The country could become the world’s first QCom success story, but only if platforms can achieve long-term sustainability. To thrive, they’ll need to do more: expand into smaller cities, ensure fair working conditions, and strike a balance between affordability and profitability.

Time is running out, because this isn’t just a race for speed; it’s a race for survival.

Mahabahu.com is an Online Magazine with collection of premium Assamese and English articles and posts with cultural base and modern thinking.  You can send your articles to editor@mahabahu.com / editor@mahabahoo.com(For Assamese article, Unicode font is necessary) Images from different sources.