India Q-Commerce

India Q-Commerce

The quick commerce market in India has just revolutionized the retail industry and made it possible for interested buyers to receive groceries and other necessities within 30 minutes to an hour. This sector has grown over time because of the rising trends in urbanization, time for convenience, and the COVID-19 virus that forced sellers to embrace e-commerce. Companies such as Zomato, Swiggy, Dunzo, and Blinkit have come into operation and everyone is aiming to bring more consumers into a spaceship as reaction time is the order of the day. The advanced application of logistics impacts service delivery, data analysis, and mobile technologies that support local businesses through hyperlocal delivery systems.

The India Q-Commerce Market is expected to grow at a steady rate of around 28.1% owing to the rising company mergers and acquisitions. For instance, in 2022, Swiggy acquired the dining and table reservation platform Dineout from Times Internet in an all-stock deal valued at USD 120 million. Moreover, increased internet penetration, rising urbanization, and rapid digital transformation are anticipated to boost the Indian Q-commerce market.

• Based on product type, the Indian Q-commerce market is segmented into grocery, food & beverages, personal care products, household products, and others. The food & beverages segment acquired a significant share of the Indian Q-commerce market and shows high consumer engagement in terms of share and sales. The leading food delivery platforms such as Zomato and Swiggy have effectively transitioned from strictly food delivery business models to grocery and essential delivery both because it is lucrative and aligns with the new reality of urban customer demand. This segment creates a cross-sell facility where people can order food as well as groceries. As meal kits and subscription services emerge as popular categories, the foods and beverages sector remains poised to define quick commerce’s evolution and consumer expectations in India’s densely populated cities. Thus, food & beverages held a significant share of the market in the year 2023.
• Based on sales channel, the Indian Q-commerce market is segmented into web-based, app-based, and telephone-based. The app-based segment caters significant segment of the Indian Q-commerce market. The quick commerce segment mainly operated through the application has turned into a decisive force in India and changed people’s habits in purchasing goods. The onset of smartphones and the rise in internet accessibility have resulted in mobile applications of principal players that have made shopping for groceries and essentials relatively easy. Users of app-based services are important because tech-savvy urban residents regard the convenience of application-based over the traditional style of shopping. With companies constantly expanding and improving the functionality of their apps, this business segment is poised to remain stranglehold of quick commerce, entrenching the modality deeper into the lives of consumers in India. Thus, app-based held a significant share of the market in the year 2023.
• For a better understanding of the market adoption of Indian Q-commerce, the market is analyzed based on its state-wise presence in India such as North India, East India, West India, and South India. The Q-commerce market in South India is growing at a fast pace due to newly forming cities such as Bangalore, Hyderabad, and Chennai. The consumer demographic of these city hubs is large and technologically aware, which is gravitating toward the ‘ Convenience Factor’ while shopping – perfect markets for quick commerce. Market giants also ventured into the delivery segment meeting the needs of the busy lifestyles of consumers. Another advantage of the region’s markets is the availability of efficient last-mile delivery due to generally well-developed logistics. Also, the advance in the internet shopping culture and the shift of consumerism trend toward convenience and speed make South India strategic for the growth of quick commerce business to penetrate the urban lives. For instance, in August 2024, Flipkart launched a quick commerce vertical called 'Minutes', exclusive to Bengaluru. Thus, south India is growing at a significant rate in the Indian Q-commerce market.
• Some of the major players operating in the market include Swiggy; Zepto; Flipkart Minutes; Dunzo Digital Private Limited; Supermarket Grocery Supplies Pvt Ltd (Big Basket); Licious; Country Delight; Amazon Fresh Store; JioMart; Blink Commerce Private Limited.