Quick comm race: Who finishes first? Who burns out?

India’s quick commerce market is witnessing unprecedented growth and disruption. As platforms like Zepto, Swiggy Instamart, Blinkit, and even Myntra enter this space, the market is becoming increasingly fragmented.

This competition is driven by consumer demand for instant deliveries, price wars fueled by deep-pocketed investors, and the allure of untapped potential in hyper-local logistics. However, industry experts warn that this gold rush may not sustain itself for long, with only a few players likely to survive the chaos.

Quick commerce, or q-commerce, has taken e-commerce a step further by prioritizing speed over everything else. Sandeep Goyal, Chairman of Rediffusion, sees this as a natural evolution, "Quick commerce is a continuous disruption. It’s about speed, convenience, and immediate need, but it is fundamentally an extension of e-commerce. However, the market is destined for a major shakeout. Many players will burn out due to inefficiencies or unsustainable business models."

This disruption is driven by players offering delivery within 10–30 minutes, catering to consumers who value speed and convenience over cost. Yet, not all platforms can sustain this model. As Goyal points out, many are heavily dependent on investor funding to fuel discounts and aggressive customer acquisition strategies. The risk of burning out is high.

Market fragmentation has significantly impacted pricing strategies and customer acquisition costs (CAC). Swiggy Instamar t frequently offers discounts and free deliveries to attract new users, but this erodes profit margins. In contrast, BigBasket’s BB Now uses bundled offers and loyalty programs to retain customers and manage CAC effectively.

Rohit Ohri, former Chairman and CEO of FCB Group India, highlights the financial implications of this competition, "Deep pockets and operational efficiencies are critical for survival. The market is already moving toward consolidation, and we may see major players dominate in the next one to two years."

In this crowded landscape, some brands are finding success by focusing on niche markets. ZappFresh specializes in fresh meat and seafood delivery, while Farmizen caters to health-conscious consumers seeking organic produce. Such focused approaches have allowed these brands to carve out loyal customer bases.

Samit Sinha, Founder of Alchemist Brand Consulting, emphasizes the importance of targeting high-demand or impulse-buy categories, "To succeed in quick commerce, brands must focus on daily needs and high-impulse categories like fresh produce, dairy, or even grooming services. Operational efficiency is critical before scaling."