Quick commerce is no longer a niche—it’s now the driving force of India’s e-grocery market! According to a recent Bain & Company report, quick commerce now accounts for a staggering 70-75% of total online grocery orders, a massive jump from just 35% in 2022.
So, what’s fueling this meteoric rise? Consumers today crave instant deliveries, and quick commerce is delivering—literally! Improved logistics, rising incomes, and an expanded product range have made 10-minute grocery deliveries the norm. Industry giants like Flipkart Minutes, Nykaa, and Myntra have rushed into the sector, alongside new disruptors like Swish and Slikk, intensifying competition and driving innovation.
To meet soaring demand, companies are optimizing their logistics. The report highlights a new dark store model, where ‘back’ stores stock high-value items and supply multiple ‘forward’ stores for faster deliveries. These back-end warehouses hold 3,000-4,000 premium products, catering to a broader customer base.
Quick commerce isn’t just reshaping e-grocery, it’s also a game-changer for D2C brands. With better market access and hyper-targeted marketing, startups are now dedicating entire budgets to quick commerce platforms, skyrocketing their visibility and sales.
The sector’s profitability is also on the rise. The report reveals a 40% increase in average order value (AOV) between FY23 and FY25, thanks to expanded product categories and higher free delivery thresholds. Moreover, a shift toward high-margin D2C products and new ad revenue streams is boosting gross margins by 3-4%.
Operational efficiency is another major factor. With more dark stores now processing over 1,000 orders per day, per-shipment costs have dropped by 25% in 2024 compared to 2023.
With these rapid advancements, quick commerce is set to further solidify its dominance, redefining how India shops for groceries. Are you on board with the quick commerce revolution?
