Q-Commerce Industry In India- Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Q-Commerce Industry In India- Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Q-Commerce is a model driven by quick on-demand delivery. Through Q-Commerce, the benefits of e-commerce are combined with the traditional shopping experience creating a business model where the increasing customer demand is met effectively with the facilitation of online buying.

With the advent of COVID-19, quick commerce observed continuous growth and became part of a fast-paced life. Post-pandemic on-demand delivery and digital offering observed a rise for food and retail businesses, and in need to operate successfully, it could give rise to a quick commerce market. Post-pandemic, many brands observed growth by integrating quick commerce into their business, including Grofers, Zepto, Zomato, Swiggy, Big Basket, etc.

Global revenue from last-mile food and grocery delivery is observing a continuous increase. India has been observing continuous growth in per capita income among people since 2011, and with technology penetration among the population been increased rapidly, Q-commerce is expected to observe positive growth in India. India has observed rapid growth with a surge in customer base and investment level and expanding its operations, guiding other upcoming players about opportunities available in the market for Q-commerce.

To fulfill the demands and needs of customers with the advent of COVID-19 emergence of Q-Commerce take place. With the availability of faster delivery in a short period, customers expect more product variety of electronics, clothing, and personal goods which needs to be delivered in a short time.

By extending its reach in the market, quick commerce was serving 20 million households in 2020, and it is expected to reach 26 million in five years with an increase in its market penetration and addressable market size. Zepto and Dunzo stand as the selected quick commerce startup receiving funding of USD 160,700.1 million as of March 2022, providing them with a good amount of liquidity and growth.

A majority of the population in India, over 63%, have an overall positive experience with the use of e-commerce sites and online shopping, which provides them more convenience compared to a physical store with the availability of better deals.

As of last year, 64% of the population of India preferred both online and in-store shopping. Only 12 % of the population prefers online shopping, which signifies a lot needs to be done and ample market opportunity for quick commerce.

In India, key players in the quick commerce industry include Mumbai-based Zepto, Food-tech platform Swiggy's Instamart, and Dunzo Daily. These all provide instant delivery within a short time interval through the availability of dark stores. Swiggy's Instamart started to deliver within 15 minutes to the bulk of its customer. This leads to competition among quick commerce players for providing the best delivery services with a reduction in the time interval. Dunzo, a new competitor in quick commerce in India, provides a delivery time of 19 minutes and a continuously improving delivery service.

This shows a growing competition among players with a refinement of service to occupy existing market share in quick commerce.

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