Quick Commerce in India 2024: The Rapid Delivery Revolution

Quick commerce, also known as q-commerce or q-comm, refers to the ultra-fast delivery of products and services, typically within a few hours or even less than an hour after placing an order. It is a new trend in e-commerce that aims to provide customers with an extremely convenient and seamless shopping experience by offering near-instantaneous gratification.

The key aspects of quick commerce include:

Rapid delivery: Quick commerce platforms promise to deliver goods within a very short time frame, often within a few hours or even less than an hour, by using strategically located stores typically called ‘dark stores’ and a fleet of delivery personnel or third-party delivery services.

Hyperlocal focus: Quick commerce businesses primarily cater to customers within a specific geographic area, typically an area of the city or metropolitan region, to ensure efficient and timely delivery.

Limited product range: To facilitate rapid fulfillment, quick commerce platforms typically offer a curated selection of high-demand products, such as groceries, household essentials, ready-to-eat meals, and other everyday items.

Convenience and speed: The primary value proposition of quick commerce is the convenience of on-demand delivery and the speed at which customers can receive their orders, eliminating the need to wait for traditional shipping times.

Mobile-first experience: Quick commerce platforms heavily rely on user-friendly mobile applications, allowing customers to browse, select, and purchase products with just a few taps on their smartphones or devices.

Quick commerce has gained significant traction in recent years, driven by changing consumer expectations, technological advancements in logistics, and the rise of on-demand services. It offers a compelling alternative to traditional e-commerce models, particularly for time-sensitive or urgent purchases, and has the potential to disrupt various industries, including grocery, food delivery, and retail.

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The Top Players of Q Commerce 2024

Blinkit

Blinkit, formerly known as Grofers, is an e-grocery company in India that aims to revolutionize q-commerce by providing instant delivery of essential items within minutes. Their mission is to offer “instant commerce indistinguishable from magic,” enabled by a robust network of partner stores and advanced technology. With a focus on lightning-fast deliveries, Blinkit aspires to become one of the most significant e-retail companies in the country, catering to customers’ daily needs and freeing them from the hassle of planning for small chores. The company is ambitiously targeting a 100-fold growth in the next five years and seeks ambitious, smart, and dedicated builders to drive this ambitious goal.

Zepto

Zepto is India’s fastest-growing e-grocery company, valued at $1.4 billion following a recent $200 million Series E funding round from prominent global investors. Headquartered in Mumbai, Zepto operates across 10 major Indian cities with over 1,000 employees. It delivers over 5,000 products, including fresh fruits, vegetables, cooking essentials, dairy, and health-and-hygiene items, to customers’ doorsteps within 10 minutes. Through robust tech capabilities, an efficient business model, and a network of optimized delivery centers, Zepto is revolutionizing the $600 billion Indian grocery segment, making it easier and more convenient for customers. Beyond groceries, the company has introduced a cafe offering, allowing customers to order coffee, chai, and other cafe items along with their grocery orders.

Swiggy Instamart-

Swiggy Instamart is the on-demand grocery delivery service offered by Swiggy, India’s leading food delivery platform. Instamart promises to deliver a wide range of grocery items, including fresh produce, household essentials, and personal care products, within 15-30 minutes. With its network of dark stores (small warehouses) strategically located across major cities, Instamart aims to provide a convenient and hassle-free grocery shopping experience to urban consumers. Leveraging Swiggy’s existing logistics infrastructure and delivery fleet, Instamart has rapidly expanded its presence in multiple cities, catering to the growing demand for quick commerce (q-commerce) in the Indian market.

BB Instant 

Bigbasket was one of the first companies to start online grocery deliveries in India over 10 years ago. It has now become the biggest online grocery store in the country, operating in more than 300 cities and towns, and offering over 100,000 products. Bigbasket was already very popular with Indian customers, but they wanted to provide a safe, hygienic and contactless way for people to buy groceries 24 hours a day, 7 days a week. So, they launched bbinstant – a service with thousands of vending machines installed across major cities. These vending machines allow customers to purchase their daily grocery items anytime, without any human contact. With more vending machines being added, bbinstant aims to make grocery shopping even more convenient and accessible for customers across India.

Difference between E-commerce and Q- Commerce

Delivery Speed:

Q-commerce: 

Focused on delivering products within an hour or less, enabled by a network of dark stores/micro-fulfillment centers located in close proximity to customers.

E-commerce: 

Typical delivery times range from a few hours to several days, depending on the location and product availability from centralized warehouses.

Product Range:

Q-commerce:

Limited to a curated selection of high-demand, essential items like groceries, household supplies, and ready-to-eat meals to facilitate rapid delivery.

E-commerce:

Offers a vast and diverse product catalog spanning multiple categories, catering to a wide range of consumer needs.

Operational Model:

Q-commerce: 

Relies on a hyper-localized supply chain with dark stores, dedicated delivery personnel, and real-time inventory management for swift order fulfillment.

E-commerce: 

Utilizes centralized warehouses, leverages established logistics networks, and benefits from economies of scale in procurement and distribution.

Order Size and Frequency:

Q-commerce: 

Optimized for smaller basket sizes and higher frequency orders to cater to immediate, ad-hoc needs of customers.

E-commerce: 

Can accommodate both small and large order sizes, catering to planned, periodic shopping needs.

Customer Experience:

Q-commerce: 

Focused on providing instant gratification and ultra-convenience, often through seamless mobile apps and real-time order tracking.

E-commerce: 

Offers a convenient shopping experience with a broader product selection, detailed product information, and customer reviews, despite longer delivery times.

Costs and Profitability:

Q-commerce: 

Higher operational costs due to the localized infrastructure, dedicated delivery workforce, and rapid order fulfillment, posing challenges in achieving profitability.

E-commerce: 

Established players have achieved economies of scale, enabling them to operate more cost-effectively and generate sustainable profits.

Target Market:

Q-commerce:

Primarily caters to urban consumers seeking immediate access to daily essentials, with a focus on densely populated areas.

E-commerce: 

Serves a broader customer base across diverse geographic locations, catering to both urban and rural markets.

While q-commerce and e-commerce share the common goal of providing a convenient online shopping experience, their divergent approaches to delivery speed, product assortment, operational models, and target markets highlight the fundamental differences between these two models of online retail.

How to get listed on a Q-commerce platform 

STEP 1:

Go to the desired app’s (Blinkit, Zepto, Swiggy Instamart, or BB Instant) website page and find the link or button that says “Seller/ Vendor Registration”.

STEP 2:

On the registration page, you’ll need to fill out a form with your personal details like name, contact information, and details about your business like company name, address, and what kind of products you sell.

STEP 3:

After filling out the form, you’ll need to read their terms and conditions, as well as their privacy policy. Once you’ve read and understood these, you’ll need to click a button to say that you agree to them.

STEP 4:

With all the information filled out and after agreeing to the terms, you can then submit your seller registration application.

STEP 5:

The app’s seller management team(Blinkit, Zepto, Swiggy Instamart or BB Instant) will now review and verify the information you provided. This might take some time, so you’ll need to wait for them to confirm and approve your registration as a seller on their platform.

STEP 6:

If you don’t hear back from them within a reasonable amount of time about your registration status, you can contact the helpline email or numbers on the website and ask them for an update.

Top 5 trends of Q-commerce in the year 2024 

Rapid Growth: 

Quick commerce is growing at a blistering pace of 4-5 times faster than traditional e-commerce channels in India. It now accounts for 40-50% of the country’s overall e-grocery spend.

Battle of the Giants: 

Major e-commerce players like Flipkart are entering the fray to compete with incumbent start-ups like Blinkit, Swiggy Instamart, and Zepto in this high-growth segment.

Product Diversification: 

While quick commerce started with grocery deliveries, players are rapidly expanding their product assortment to include electronics, mobile phones, fashion, and lifestyle products to tap into the larger e-commerce market.

Focus on Affluent Consumers: 

Despite the overall low per capita income in India, quick commerce companies are targeting the urban affluent consumer segment of around 30 million households with over $15,000 annual income.

Improving Unit Economics: 

Indian quick commerce startups have managed to drive better unit economics through a combination of scale, higher average order values, greater order density in target areas, and value-added fees/services.

Quick commerce is booming in India this year. The demand for superfast deliveries is skyrocketing. This has attracted big e-commerce firms to enter this space, leading to intense competition with existing startups. Companies are expanding their product range beyond just groceries to everything from electronics to fashion. Their main target is affluent urban consumers who can afford these conveniences. Importantly, smart operational changes are helping firms reduce costs and become more profitable in this capital-heavy business. The craze for lightning-quick deliveries has really caught on across Indian cities.

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