The All India Consumer Products Distributors Federation (AICPDF) reports that over 2 lakh local “kirana” (general) stores have closed in the last 12 months as customers increasingly use fast delivery services like Blinkit and Zepto. According to various reports, the AICPDF blames these closures on the fast commerce industry’s explosive growth and the economic downturn. It plans to present the findings to the Ministry of Commerce and Industry and the Ministry of Finance in the coming days in order to request their action.
The largest organisation in India, the AICPDF represents 4 lakh distributors of fast-moving consumer goods (FMCG) for well-known corporations like Nestle India Ltd., Dabur India Ltd., and Hindustan Unilever Ltd.
Major Metro Cities Witness the Worst Impact on Businesses
Kirana shops in urban areas have been the most impacted, according to the industry group. Metro areas were home to about 45% of the 2 lakh shuttered kirana shops. 30% were Tier 1 cities, while 25% were Tier 2/3 cities.
According to Dhairyashil Patil, national president of the AICPDF, kirana shops, which have traditionally prospered through competition, including the rise of supermarkets, now face an existential risk as a result of the rise of rapid commerce and the economic slump. He claimed that in order to attract clients, quick commerce companies are using deceptive pricing, which involves offering steep discounts and selling below cost. This has led to an unequal playing field, which is hurting the clientele and financial success of kirana shops.
Methods Used by Quick Commerce Platforms That Are Anti-Competitive
The AICPDF requested last week that the Competition Commission of India (CCI) take action against Blinkit and Zepto, two rapid commerce platforms, for engaging in anti-competitive behaviour. They claimed that these platforms participated in unlawful pricing and monopolistic practices, as well as running underground shopfronts to get around inventory rules. Additionally, AICPDF alerted the Ministry of Road Transport and Highways about the use of possibly uninsured private vehicles for delivery by fast commerce enterprises. Furthermore, they expressed their worries to the Ministry of Health and Family Welfare that these activities compromised food safety by breaking the rules set forth by the Food Safety and Standards Authority of India (FSSAI).
Online Retailers Already Under Competition Commission’s Scanner
These developments coincide with the Competition Commission of India’s ongoing investigation into online retailers for alleged unfair activities, including predatory pricing. According to an internal study by the CCI, e-commerce giants Flipkart and Amazon India broke antitrust laws by favouring some sellers on their platforms. In a similar vein, the AICPDF requested that the antitrust body look into three rapid commerce companies for suspected unfair pricing: Zepto, Swiggy Instamart, and Blinkit from Zomato. The federation contended in its letter that many consumer goods companies abandon traditional stores in favour of direct ties with these businesses, weakening delivery standards that have been in place for decades. Quick delivery platforms’ “unchecked” growth is making it “impossible for traditional retailers to compete or survive,” the company told CCI.
The government will “give a serious thought” to protecting the interests of traders hurt by rapid commerce and e-commerce companies’ exploitative pricing strategies, according to Finance Minister Nirmala Sitharaman’s statement on September 17. Similar worries regarding the e-commerce industry were also voiced by Union Commerce and Industry Minister Piyush Goyal, who emphasised the necessity for these platforms to “operate fairly” within the nation.
A report from a media house stated that Zepto, an Indian startup known for its 10-minute grocery delivery service, has reportedly acquired a deal to transform Total Mall in Sarjapur into its Bengaluru office space.
Zepto’s sector peers, Swiggy and Flipkart, as well as giant corporations like Walmart, Adobe, and Rubrik, are located on Sarjapur Road.
Transfer of Staff to Bengaluru
The fast-commerce behemoth reportedly gave its employees until February 2025 to pack up and relocate to Bengaluru, extending the deadline by a few months. The startup had previously given its staff members until November to move from Powai, Mumbai, to Sarjapur, Bengaluru. However, because it took longer than expected to find a suitable office location, the deadline was later extended.
Zepto has started relocating certain positions to a temporary office in the city, with plans to start operations on 11 November 2024. Zepto’s development and product teams already operate out of Bengaluru, while the company’s business operations are headquartered in Mumbai. According to the source, all important departments would be consolidated in the new Bengaluru headquarters by February.
Budget Projections for the Bengaluru Relocation
As mentioned in the repot, the one-time cost of moving Zepto’s headquarters from Mumbai to Bengaluru is anticipated to be approximately INR 3–4 crore. However, by moving from Mumbai to Bengaluru, the Aadit Palicha-led company anticipates saving about INR 40–50 lakh in rent each month, offsetting this expense.
Approximately 1,000 of Zepto’s 1,700–1,800 workers are presently situated in Mumbai, 400 in Bengaluru, while the rest 300 are dispersed among different areas for city operations. Interestingly, the study also stated that almost 90% of the employees based in Mumbai are already willing to go to Bengaluru, Karnataka.
Further Expansion
In addition to the move, Zepto intends to increase its workforce. According to Aadit Palicha, co-founder and CEO of Zepto, the company plans to add 500 more workers for its corporate operations, bringing its overall workforce to between 2,200 and 2,300.
Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto has raised more than $1.5 billion from investors, including StepStone Group and Nexus Venture Partners. The business, which is currently valued over $5 billion, is regarded as one of the quick commerce industry’s fastest-growing businesses.
Zepto was previously welcomed by the Karnataka government to the capital city, and the government encouraged other start-ups to consider Bengaluru for their primary operations. Begaluru city, which ranks 18th in Asia Pacific, is also the most millennial-friendly in India in terms of jobs and education. It is a hub for innovation, home to over 3,600 funded tech firms and the greatest proportion of employable female talent. Welcome, @ZeptoNow! Karnataka IT Minister Priyank Kharge said. “I invite more startups to join us and flourish in the best startup ecosystem in India,” he added further.
Users in Gurugram and the surrounding areas of the NCR region can now take advantage of Flipkart Minutes, a new fast commerce service, which was secretly launched by eCommerce giant Flipkart.
According to a report by a media outlet, Flipkart Minutes is reportedly now available at several locations in Gurugram, including Unitech Cyber Park, Sector 39, Sector 40, The Millennium City Centre (Sector 29), and Golf Course Road (Sector 54), but the firm has not officially announced it.
The fact that the service is visible to some customers in Mumbai, according to the source, suggests that Flipkart is testing it before launching it to the public.
In What Way Does Flipkart Minutes Work?
You can get your groceries, electronics, cellphones, and more delivered in as little as 10 to 16 minutes with Flipkart Minutes, a speedy commerce service.
The service went live following reports that Flipkart scrapped its intention to acquire a substantial share in Zepto, the company headed by Aadit Palicha.
According to an April article by a media house, Zepto opted for a financing round instead of a strategic sale, to increase the company’s worth and be ready for an IPO.
The possible initial public offering (IPO) is expected to occur in the second half of 2025, according to multiple media reports. Zepto has reportedly begun conversations with Axis Capital, Morgan Stanley, and Goldman Sachs, three prominent Wall Street banks.
The Impact of Flipkart Minutes on the Market
Last month, Flipkart introduced the service in certain areas of Bengaluru, including HSR Layout, Gunjur, Bellandur, and Kadubeesanahalli. Notably, there has been a dramatic increase in the need for fast commerce services in these areas.
Flipkart is now in a stronger position than before to compete with market leaders like Zepto, Blinkit (owned by Zomato), and Swiggy Instamart, all of which have taken customers away from Amazon and Flipkart.
Users are increasingly drawn to swift commerce on Flipkart because of the convenience and speed of delivery, even though same-day delivery is already available across numerous categories. Nevertheless, not every city may implement rapid commerce.
According to Flipkart’s VP and head of groceries, Hari Kumar G., the two models—quick-commerce and next-day delivery—can coexist, and the business is looking into delivering quick-commerce services in some regions of the country depending on demand.
The View of Zomato on the Blinkit Expansion
The rapid commerce sector is dominated by Blinkit, which is owned by Zomato, as of January 2024. Zepto, on the other hand, has seen a tremendous increase in its market share, going from 15% in 2022 to almost 30% in 2024, thanks to the enormous money it raised last year.
Blinkit CEO Albinder Dhindsa has already announced intentions to keep growing the business, with 2,000 dark shopfronts planned for the end of 2026, up from 639 at present. Also, by March 2025, Zepto hopes to have doubled its dark shop network to 700.
According to a media report, the rapidly expanding e-commerce firm Zepto is gearing up to relocate its headquarters from Mumbai’s Powai to Bengaluru’s Sarjapur, the country’s technological epicentre.
Even though they have an office in Bengaluru now, the business is planning to merge all of their corporate functions into one larger location.
All 1,700-1,800 of the company’s employees will be housed in Bengaluru, where the tech and product teams are located, and Mumbai is where the business verticals are located. The company has been in operation for three years.
A larger property
In India, Zepto has two significant offices. An expansive property in Mumbai spanning 80,000 to 90,000 square feet and a more compact facility in Bengaluru spanning 30,000 to 40,000 square feet. Both properties will be surrendered when it relocates to a bigger 1.5 lakh square feet location in Bengaluru. Zepto is now working on the final details of a property of that scale in the Sarjapur, HSR, or Bellandur area. Bellandur, HSR, Sarjapur, and the neighbouring tech parks are home to a number of MNCs and cutting-edge startups.
Zepto will be in close proximity to competitors like Swiggy and Flipkart if it establishes an office in one of these locations.
Strengthening of the Workforce and Recruitment Strategies
Approximately 1,000 of Zepto’s 1,700-1,800 workers are based in Mumbai, 400 in Bengaluru, and 300 elsewhere, observing city operations. Since Zepto considers itself a developing company, it finds it simpler to attract talent, therefore it is ready to take that risk. With each new round of money, Zepto’s case strengthens. It plans to hire primarily from and to Bengaluru in the future.
Zepto’s decision was made at a time when the Tech Entrepreneurs Association of Mumbai (TEAM) is endeavouring to establish Mumbai as an appealing city for founders to establish and expand from.
Zepto is Not the First Who Made This Shift
Bhavish Aggarwal of Ola, Gaurav Munjal of Unacademy, Kunal Shah of CRED, Jitendra Gupta of Jupiter, and many more famous founders have all relocated from Mumbai to Bengaluru in the past ten years.
Not only have the founders done this, but even their investors have joined them.
Members of the India Quotient and Elevation Capital venture capital teams are among many who have relocated here from other cities.
You should be in Bengaluru if you are just starting off. There is no other place to consider. In February, Munjal of Unacademy stated on X (formerly Twitter) that the city’s network effects are unbreakable.
“One can try as hard as he could but you cannot make Delhi or Mumbai a tech hub,” according to him.
At the beginning of the new year, the two most prominent participants in the food delivery industry raised the platform fees by INR 1, which is equivalent to a 33 percent increase from INR 3 to INR 4. According to the predictions made by the media, the prices of consumer services would increase. This prediction was pretty much spot on thanks to Zomato and Swiggy, and it started on New Year’s Eve, which is the busiest day of the year for both of these companies.
Platform fees are not restricted to food delivery apps; Myntra, the top fashion eCommerce platform in India, is presently charging a platform fee of ₹20 for each order that is placed on its app. These fees are a component of the methods that the corporations employ to enhance their profitability and maintain their business models. The implementation of such fees, on the other hand, might vary, and some businesses may experiment with greater prices in the future or alter them based on the demand for specific services.
The most dedicated Zomato and Swiggy customers had to make some choices at the start of the new year. Should they decide to reduce their reliance on these platforms or keep paying ever-increasing platform fees to stay on top of them?
Starting on January 1, Zomato raised the platform fee from INR 3 to INR 4 per order in select areas. Unverified rumors circulated that on New Year’s Eve, Zomato briefly increased their platform fees to as much as INR 9 per order in several countries.
The price increases were justified by Zomato as “business calls” made after considering several variables. Coincidentally, Zomato’s order volume shot up to higher than the volume over the last six years combined, and the platform fees surged the day after New Year’s Eve.
The innovative approach and unwavering commitment to satisfying customers’ demands have contributed to Zepto’s steady rise to prominence, positioning it as the third-largest rival in the fast commerce space. Zepto is challenging industry heavyweights such as Swiggy Instamart and Blinkit, which is owned by Zomato, with a reputation for itself and a market share of over 20%. During its rise to prominence, Zepto has been known for its thoughtful approach to implementing platform fees, as well as its focus on user experience and operational performance.
In an attempt to boost income and operational efficiency, Zepto has decided to implement platform fees for a small number of users, which is different from the fee-free grocery order strategy of competitors Blinkit and Swiggy Instamart. Zepto’s plan, which starts at Rs 2 per order, follows the same model as established industries like eCommerce and restaurant delivery. Zepto emphasizes in its strategy introduction its commitment to sustainable growth and profitability over the long term and its willingness to try new things to stay ahead of the competition.
Size of the Online Food Delivery Market Across India From 2020 to 2023, With Estimates Until 2026
Aiming for Financial Gain
In addition to Zomato and Swiggy, other popular food delivery services like Uber, BigBasket, Myntra, and Dunzo impose extra charges (convenience charges, handling fees, and more) on top of the real delivery prices, which are typically discounted. Ola Prime Plus and Namma Yatri’s subscription plans for driver-partners are examples of new models that have emerged as a result of the revenue drive.
The fashion eCommerce behemoth Myntra, which is owned by Flipkart, started charging a fee for returns, which is one of its main selling points. The goal here is to correct unit economics.
According to Prosus, Swiggy’s principal investor, the company’s loss increased to $545 million in 2022 from $300 million the previous year, while Swiggy has not yet disclosed its financial results for FY23.
Platform fees are opening the way for the company to show a clear path to profitability in the next few months, which is necessary for its 2024 IPO. Platforms like Swiggy and Zomato will compensate to some degree by charging customers directly, even if discounts will still be around.
How much these fees are, how open they are, and how much value they give to everyone involved in the delivery process will determine if they are ethical.
The openness of these fees is also very important. Any fees and their purpose should be made plain to both customers and eateries. In an ethical system, food delivery fees would be reasonable, helping to sustain the industry while not unfairly harming any one participant.
India’s leading digital commerce entity Flipkart is working to venture into the fast-paced world of quick commerce to meet the burgeoning demand for rapid delivery of everyday essentials.
Flipkart has recently unveiled its latest initiative of same-day delivery service now available in 20 major Indian cities.
This strategic move underscores Flipkart’s unwavering dedication to elevating customer satisfaction, and convenience and to revolutionize the eCommerce landscape.
“We are committed to meeting evolving customer expectations and delivering excellence in value, selection, and speed, with more initiatives expected on this front in the coming months,” Walmart-backed Flipkart said in a statement.
This new initiative of same-day delivery will be for customers across cities including Ahmedabad, Bangalore, Bhubaneshwar, Coimbatore, Chennai, Delhi, Guwahati, Hyderabad, Indore, Jaipur, Kolkata, Ludhiana, Lucknow, Mumbai, Nagpur, Pune, Patna, Raipur, Siliguri and Vijayawada.
It would cover products like mobiles, essential items, electronics, home appliances, fashion, books, and lifestyle goods. The customers will get their products delivered before midnight if they place their orders by 1 pm without any extra charge.
Flipkart’s introduction of same-day delivery service represents a significant advancement in the Indian eCommerce market.
“We have invested in cutting-edge technologies, leveraged data analytics, and harnessed insights on demand patterns to ensure that we are well-equipped to anticipate and fulfill demand the very same day. I must acknowledge the hard work and dedication of our teams who have tirelessly contributed to making this vision a reality,” said Hemant Badri, Senior Vice President, Head of Supply Chain, Customer Experience & ReCommerce Business, Flipkart Group.
In the past year, quick commerce has surged into a billion-dollar industry with platforms like Blinkit, Zepto, and Swiggy Instamart poised to exceed USD 1 billion in revenue in the financial year 2023-24.
The surge in quick commerce has captured Flipkart’s interest, prompting the eCommerce giant to enhance its emphasis on the grocery sector.
As quick commerce constitutes approximately 40% of online grocery delivery, it is increasingly fueling growth. Flipkart’s renewed focus on grocery aligns with a broader transition away from conventional eCommerce models centered on sales and discounts.
As of now, these apps are providing quick commerce to consumers in major Indian cities:
Blinkit
Swiggy Instamart
Zepto
Started operations in
January 2022
August 2020
April 2021
Revenue as of FY 2023 (in Rs crore)
724
3221
2024
Revenue as of FY 2022 (in Rs crore)
236
2036
142
Funds raised for quick commerce (in U.S.$ million) US$ 1 mn = Rs 8.2 cr
569
700
361
Current market share (in %)
40%
37-39%
20%
It’s essential to acknowledge how its rivals have also expanded into quick commerce to meet evolving customer demands.
Here’s how some of Flipkart’s competitors have ventured into quick commerce:
Amazon India
Amazon has been a key player in the Indian eCommerce sector, and it has also delved into quick commerce to enhance its delivery capabilities. The company offers Amazon Prime Now, which provides ultra-fast delivery of essentials, groceries, electronics, and more within a few hours.
Reliance Retail
Reliance Retail, through its digital arm JioMart, has been rapidly expanding its presence in the e-commerce space. Leveraging Reliance’s extensive network of physical stores and warehouses, JioMart offers quick delivery of groceries, household essentials, and other daily items.
BigBasket
As a leading online grocery platform in India, BigBasket has capitalized on the growing demand for quick delivery of essential items. The company offers express delivery services for groceries and household essentials, ensuring that customers receive their orders within a few hours. BigBasket has the quick commerce feature BB Now too to get groceries delivered in 15-30 minutes.
Blinkit
Grofers now Blinkit has rebranded itself to reflect its commitment to rapid delivery. With its extensive network of local partners and warehouses, Blinkit ensures that customers receive orders within a few minutes, making grocery shopping seamless.
Blinkit has begun selling home appliances, puja essentials, Eid special offerings like prayer mats, thobe kurte, ‘sehri’ and ‘iftar’ needs, ‘Holi’ needs, sweets, colors, thandai, bakery items, meats, seafood, cosmetics, mobiles and accessories, electronics, baby care products and much more.
Swiggy and Zomato
While primarily known for their food delivery services, Swiggy and Zomato have also entered the quick commerce space by offering delivery of groceries, medicines, and other essential items.
Zepto
Zepto is also the name of a quick commerce platform that enables businesses to offer fast delivery services for groceries, bakery products, kitchen essentials, paan corner (betel leaf), tobacco, health and hygiene, toiletries, clothing, and other essentials. Zepto provides tools and infrastructure to facilitate within minutes delivery of goods to customers’ doorsteps.
Dunzo
Dunzo has become synonymous with hyperlocal delivery, with its Daily service taking it a step further by guaranteeing delivery within 19 minutes. From groceries to medicines to food from nearby localities to letters to clothes from the nearest boutique, Dunzo Daily fulfills all your daily needs with lightning speed.
While Flipkart maintains a strong foothold in the market, achieving revenue growth poses a continual challenge. With the emergence of competitors such as Zepto and Blinkit, there is a critical need for Flipkart to establish itself within the quick commerce sector.
As per media reports, Flipkart is also weighing options to expand into quick commerce with the introduction of dark stores. Dark stores are like mini warehouses designed for online orders.
Flipkart is also planning to buy Dunzo Daily. Despite having raised approximately USD 500 million in funding, Dunzo has struggled to secure additional investment and meet its staff payroll.
The hyperlocal delivery company has lost ground to newer competitors like Zepto, Swiggy, and Zomato’s Blinkit, leading to a drop in its market position.
Flipkart, valued at over USD 32 billion, is considering buying Dunzo, known for its local delivery skills. This move could be smart, but talks might take a while because Dunzo has ties to Reliance Retail, its main investor owning a 26% share.
Flipkart wants to be careful about what it buys, especially considering Dunzo’s connections, according to an article published by Business Insights Now on February 23.
The prospects of quick commerce, including Flipkart’s role, are exceptionally promising, driven by evolving consumer preferences, technological advancements, and market dynamics.
Flipkart, along with other quick commerce platforms, will capitalize on increasing smartphone penetration, internet connectivity, and digital payment systems to broaden its reach across diverse demographics and geographic regions.
By 2028, it is anticipated that the number of users in the quick commerce market in India will reach 56.4 million users. The user penetration rate, which currently stands at 1.8% in 2024, is projected to rise to 3.8% by 2028.
Meanwhile, the quick commerce market in India is anticipated to reach a revenue of USD 3.3 billion in 2024, with a projected compound annual growth rate (CAGR 2024-2028) of 27.42%. This growth trajectory is expected to propel the market volume to USD 8.8 billion by 2028.
Revenue of Quick Commerce Market in India
Conclusion
In summary, Flipkart’s expansion of its same-day delivery service epitomizes its dedication to setting new benchmarks of excellence in the eCommerce arena.
With a focus on speed, convenience, and customer satisfaction, Flipkart reaffirms its position as a trailblazer in India’s digital commerce revolution.
As the quick commerce market continues to evolve and expand, Flipkart’s strategic initiatives and dedication to customer satisfaction will shape its trajectory in the years to come.
The future holds endless possibilities, and Flipkart stands ready to embrace the opportunities that lie ahead, driving forward the evolution of online retail.
“Many believe Amazon and Walmart-owned Flipkart will continue to dominate the future of Indian eCommerce. In my humble opinion, I would not bet against the hometown teams at Zepto and Zomato,” said a LinkedIn post by Paul Hudson, Founder and CIO, of Glade Brook Capital.
Glade Brook Capital, which supported Zepto in Mumbai last year, also invested in Zomato’s parent company, Blinkit, back in 2019.
FAQs
In how many cities will Flipkart provide the same-day delivery service?
Flipkart will provide same-day delivery service in 20 major Indian cities including Ahmedabad, Bangalore, Bhubaneshwar, Coimbatore, Chennai, Delhi, Guwahati, Hyderabad, Indore, Jaipur, Kolkata, Ludhiana, Lucknow, Mumbai, Nagpur, Pune, Patna, Raipur, Siliguri and Vijayawada.
What will be the revenue of the quick commerce market in India in 2024?
The quick commerce market in India is anticipated to reach a revenue of USD 3.3 billion in 2024, with a projected compound annual growth rate (CAGR 2024-2028) of 27.42%. This growth trajectory is expected to propel the market volume to USD 8.8 billion by 2028.
Who are the competitors of Flipkart in the field of quick commerce?
The competitors of Flipkart in quick commerce include Dunzo, Amazon India, Reliance Retail, BigBasket, Blinkit, Zepto, Zomato, and Swiggy.
In Indian metro cities, the retail sector is changing fast with instant apps. Instant grocery delivery apps—Blinkit, Zepto, Swiggy Instamart, BBNow, and Dunzo Daily are leading this shift, making everyday shopping a breeze.
They are not just names; they represent the vanguard of quick commerce. These instant delivery apps are reshaping how consumers shop for everyday necessities.
Here’s a closer look at how these platforms are revolutionizing retail and what the future holds for this burgeoning industry.
In today’s fast-paced world, consumers demand convenience at their fingertips, and instant apps deliver precisely that.
With a few taps on their smartphones, shoppers can browse through an array of products, from groceries to household essentials, and have them delivered to their doorstep within a few minutes.
This consumer-centric approach has propelled instant apps to the forefront of the retail landscape, leaving traditional brick-and-mortar stores scrambling to keep up.
Industry Disruption
The impact of instant apps on the retail industry cannot be overstated. These platforms have disrupted conventional retail models, prompting retailers to rethink their strategies or risk becoming obsolete.
Thanks to fast delivery and a wide range of products, consumers are rushing to instant apps, fueling a major shift towards e-commerce and quick commerce.
Blinkit delivered 10,000 single roses by 10 am on Valentine’s Day this year.
Zepto sold more than 200,000 roses during Valentine’s week.
Blinkit delivered 20K+ chocolates in less than 10 minutes as they peaked at 406 chocolates per minute.
Zepto saw a 4x jump in sales on Chocolate Day.
In 2023, during the India and Australia World Cup finals, Swiggy Instamart experienced a surge, with the app registering a peak of nine jersey orders per minute.
On New Year’s Eve, Zomato achieved a groundbreaking number of orders on its app, nearly matching the total orders from the same day across the previous six years, from 2015 to 2020. “8,422 orders were placed at 8:06 pm – that’s 140 orders every second,” Deepinder Goyal said in a post on X, formerly Twitter.
Over Rs 97 lakh in tips were given to delivery partners on December 31, with more than 3,20,000 delivery partners serving customers across Zomato and its quick commerce business, Blinkit.
On New Year’s Eve, Swiggy processed over 480,000 biryani orders, equivalent to 1,244 dish units ordered every minute.
On New Year’s Eve 2023, Indians placed a record-breaking 6.5 million online food delivery orders, marking an 18% increase compared to the previous year.
Record-High In Orders For Swiggy, Zepto, & Blinkit; Insights From CEO Aadit Palicha & Rohit Kapoor
Key Players
As of now, these apps are providing quick commerce to consumers in major Indian cities:
Blinkit
Swiggy Instamart
Zepto
Started operations in
January 2022
August 2020
April 2021
Revenue as of FY 2023 (in Rs crore)
724
3221
2024
Revenue as of FY 2022 (in Rs crore)
236
2036
142
Funds raised for quick commerce (in U.S.$ million) US$ 1 mn = Rs 8.2 cr
569
700
361
Current market share (in %)
40%
37-39%
20%
Blinkit
Formerly known as Grofers, Blinkit has rebranded itself to reflect its commitment to rapid delivery. With its extensive network of local partners and warehouses, Blinkit ensures that customers receive their orders within a matter of minutes, making grocery shopping a seamless experience. The company has begun selling home appliances, chargers, headphones, smartwatches, lighting solutions, batteries, electronic accessories, and more.
Zepto
Zepto has carved a niche for itself in the instant delivery space, offering a wide range of products, including groceries, electronics, fruits, vegetables, and personal care items. Leveraging advanced logistics technology, Zepto guarantees swift delivery, catering to the on-the-go lifestyle of metro dwellers.
Swiggy Instamart
Building upon the success of its food delivery platform, Swiggy has ventured into quick commerce with Instamart. Partnering with neighborhood stores, Swiggy Instamart promises delivery in under 30 minutes, ensuring that customers never run out of essentials.
BBNow
BigBasket, a household name in online grocery shopping, has launched BBNow to tap into the burgeoning demand for instant delivery. It guarantees delivery within 15-30 minutes, and in the event of a delay, offers a 5% cashback, subject to certain terms and conditions such as extreme traffic, peak hours, and unforeseen circumstances.
Dunzo Daily
Dunzo has become synonymous with hyperlocal delivery, and its Daily service takes this a step further by guaranteeing delivery within 19 minutes. From groceries to medicines to letters to clothes from tailors, Dunzo Daily fulfills all your daily needs with lightning speed.
Amazon Fresh
Amazon’s grocery delivery app, Amazon Fresh is not into 10-minute delivery but it takes grocery orders via the Amazon Fresh website or mobile app. The company aims to deliver goods at home within 2-4 hours of placing order.
Flipkart Plans Foray
In the fast-paced world of eCommerce, eCommerce giant Flipkart is gearing up to compete with established players like Swiggy’s Instamart, Zomato’s Blinkit, and Zepto.
As per industry insights, Flipkart is also building its infrastructure to expand into quick commerce with the introduction of dark stores.
Dark stores are essentially mini warehouses designed for online order fulfillment. They operate discreetly, away from regular consumers, and boast enhanced inventory storage capacity and streamlined operations.
Flipkart’s decision to venture into quick commerce stems from market dynamics. The firm is aiming for rapid deliveries within 10-15 minutes in major cities like Bengaluru, Delhi (NCR), and Hyderabad, as per reports.
“At Flipkart, customer-centricity is at the core of everything we do. We constantly work towards delivering a wide range of products to customers with speed. Over the past few months, we have made several investments to enhance our delivery capabilities, including adding same-day delivery in 20 cities. This covers mobiles, essential items, electronics, home appliances, fashion, books and lifestyle products. We are committed to meeting evolving customer expectations and delivering excellence in value, selection and speed, with more initiatives expected on this front in the coming months,” said Flipkart’s spokesperson on a query whether Flipkart is planning to enter the quick commerce business.
Recent statistics indicate a notable loss in Flipkart’s grocery sales to Blinkit and Instamart, attributed to their lightning-fast delivery services, often within 15 to 20 minutes. This reflects a broader consumer preference for convenience and speedy services, prompting Flipkart to adapt its strategy accordingly.
“The market is already moving this direction, with Zomato and Zepto expanding their product assortments, Amazon offering same day delivery in select Indian cities and Walmart-owned Flipkart recently announcing a similar move,” said Glade Brook Capital Founder and CIO Paul Hudson on March 6, 2024 in his LinkedIn post.
Glade Brook Capital is a US-based venture capital firm, which has invested in Zepto and Zomato.
By leveraging the efficiency of dark stores, Flipkart aims to regain market share and cater to evolving consumer preferences. The move signifies a strategic pivot aimed at aligning with market demands and providing swift, seamless delivery experiences to customers.
Future Market Estimations
The future for instant apps in Indian metro cities shines brightly.
According to Inc42 data, the quick commerce sector in India experienced a rapid surge in popularity between 2021 and 2023, raising USD 4.2 billion in funding.
According to industry projections, the quick commerce segment in India is expected to witness exponential growth, with estimates suggesting a market size of USD 5 billion by 2025.
This growth trajectory is fueled by the increasing penetration of smartphones, rising internet connectivity, and changing consumer preferences.
As technology progresses, these platforms will evolve into even more efficient and user-friendly solutions, providing personalized recommendations and seamless shopping experiences.
“Together with Swiggy Instamart (where Glade Brook is not an investor), Zepto and Zomato-owned Blinkit have led the growth of this sector, from start-up to millions of users and tens of thousands of crores (billions of US dollars) in revenue in less than 3 years,” Hudson said in his insightful article on professional networking site LinkedIn.
Advancements in logistics, Artificial Intelligence, and machine learning will play pivotal roles in streamlining operations, leading to quicker delivery times and heightened customer satisfaction.
“India’s quick commerce market is experiencing rapid growth due to increasing smartphone penetration and a young tech-savvy population. By 2028, it is anticipated that the number of users in the Quick Commerce market in India will reach 56.4 million users. The user penetration rate, which currently stands at 1.8% in 2024, is projected to rise to 3.8% by 2028,” as per the findings of data gathering online platform Statista.
Furthermore, the proliferation of smart devices, more and more innovation in the retail sector, refinement in apps, and the impending rollout of 5G technology will catalyze the expansion of instant apps’ reach.
With faster and more reliable internet connectivity, these platforms will extend their services to even the country’s most remote corners, democratizing access to essential goods.
As urbanization continues unabated and the demand for convenience escalates, the potential for instant apps to capture a significant market share is immense.
More Power to Consumers
The availability of goods through instant apps can be a game-changer for the retail sector. It not only changes how one shops but also gives power to consumers.
With instant apps, people can easily find what they need, no matter where they are.
This means big changes in how customers buy things. In Indian metro cities, the future of instant apps looks promising. They’ll keep getting better and reaching more people.
As they improve with new technology, nationwide shopping will become quicker, simpler, and more tailored to each person’s needs and thoughts.
Despite their rapid growth, instant apps face several challenges and stiff competition in the market.
One of the primary hurdles is ensuring seamless logistics and efficient last-mile delivery.
The reliance on a network of delivery partners and the management of inventory in real-time pose significant operational challenges.
Additionally, competition among instant apps is intense, with players vying for market share through aggressive marketing strategies and innovative offerings.
Solutions and Innovation
To overcome these hurdles, instant apps are leveraging technology and innovation to streamline operations and enhance the user experience.
Advanced logistics algorithms optimize delivery routes, minimizing delivery times and maximizing efficiency.
Real-time inventory management systems ensure that products are readily available, reducing the likelihood of stockouts. Moreover, partnerships with local vendors and neighborhood stores expand the product assortment, catering to diverse consumer preferences.
Making Life Easy for Users
Instant apps have transformed the lives of users in myriad ways, offering unparalleled convenience and flexibility.
Busy professionals can now skip the hassle of visiting retail shops, grocery shopping, and household errands, they can just rely on instant apps to fulfill their daily needs within minutes.
Based on the region, the Southern part of India captured the major market share in the India Quick Commerce market. The Q-commerce companies are expanding their presence in metro & Tier 1 cities such as Hyderabad, Bangalore, Pune, Mumbai, Chennai, etc., in the Southern region.
Moreover, the major factors attributing its demand in these prime cities are the presence of the working population, large internet penetration as well as high awareness regarding the usage of technology.
“The individuals living in these cities are more tech-oriented & are more likely to refer to an online platform to purchase their day-to-day groceries due to their busy lifestyles, aging populations, and the prevalence of work from home. Hence, this leads to a lower preference to visit stores,” said a report ‘India Quick Commerce Market Research Report: Forecast (2023-2028)’ by MarkNTel Advisors.
Parents juggling work and family responsibilities find solace in the ability to order essentials at the touch of a button, saving precious time and energy.
Moreover, the seamless integration of payment gateways and user-friendly interfaces ensures a hassle-free shopping experience, further enhancing user satisfaction. These instant delivery apps are attractive as they provide coupon codes, discount offers, and cashback for using varied payment gateway options.
Transforming Shopping for Seniors and Mobility-Challenge
Instant apps are incredibly useful for senior citizens and people with disabilities who face challenges in visiting stores and standing in long queues. They can browse through a wide range of products and make purchases with just a few taps on their smartphones or tablets.
These apps are designed with accessibility features that cater to individuals with different disabilities. This includes features such as voice commands, screen readers, and adjustable font sizes, making it easier for them to navigate the app and complete transactions independently.
For individuals with mobility issues or chronic pain, visiting stores and standing in queues can be physically exhausting and uncomfortable. Instant apps alleviate this strain by allowing them to shop from home, avoiding the need to navigate crowded aisles or wait in long lines.
Instant apps often offer personalized recommendations based on past purchases and preferences. This tailored shopping experience can be beneficial for senior citizens and people with disabilities, ensuring that they find items that meet their specific needs and preferences without the hassle of browsing through crowded shelves.
Conclusion
The rise of instant apps in Indian metro cities marks a paradigm shift in the retail industry.
Blinkit, Zepto, Swiggy Instamart, BBNow, and Dunzo Daily are at the forefront of this revolution, offering consumers unparalleled convenience and efficiency. As these platforms continue to innovate and evolve, they will redefine the way we shop, setting new standards for convenience, speed, and customer satisfaction.
The future of retail is here and now.
FAQs
What is Quick Commerce?
Quick Commerce, also referred to as Q-commerce, is a type of eCommerce where the emphasis is on quick deliveries, typically in less than an hour.
What are the best Quick Commerce companies in India?
Swiggy, Dunzo Now, Blinkit, Big Basket, and Zepto are the major companies operating in the Indian Q-Commerce Market.
What is the projected user expansion in the Quick Commerce sector within the Indian market in the future?
By 2028, it is anticipated that the number of users in the Quick Commerce market in India will reach 56.4 million users.
Nitin Konde
