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India’s Quick Commerce Sector Dominates E-Grocery Orders in 2024
India’s quick commerce sector has seen explosive growth, accounting for over two-thirds of all e-grocery orders in 2024, according to a new report by consultancy Bain and e-commerce giant Flipkart. This rapid rise highlights the sector’s expansion and its significant impact on India’s e-retail market.
Market Growth and Projections
The quick commerce industry’s market share surged nearly five-fold, reaching an estimated $6-7 billion in 2024, up from the previous year. The sector, which includes companies like Zomato-owned Blinkit, now accounts for about 10% of India’s overall e-retail spending. These platforms, which offer delivery of groceries and other items within minutes, are poised for further expansion, with an annual growth rate of over 40% expected until 2030.
Key Drivers and Challenges
Quick commerce has emerged as one of the most notable trends in India’s e-retail sector over the past two years, serving over 20 million online shoppers and employing more than 400,000 people. The industry’s rapid rise is attributed to its ability to cater to the growing demand for fast deliveries in urban areas, capitalizing on consumer convenience.
However, the sector faces challenges, particularly in terms of expanding profitability. Companies may struggle to extend their reach beyond major metropolitan areas and contend with fierce competition from larger players like Flipkart. To sustain growth, experts suggest that quick commerce companies will need to adapt their business models, optimize supply chains, and manage increasing competition.
The Future of Quick Commerce
While the growth prospects of the sector are promising, some industry experts warn that the quick commerce boom may be short-lived. A recent report from Blume Ventures cautioned that maintaining such rapid growth may prove difficult. TVS Capital Funds Chairman Gopal Srinivasan also expressed concerns, calling the quick-commerce trend a “passing fad” that could prove unsustainable in the long run.
Fast-Delivery Giants Zomato, Swiggy, Zepto Face Antitrust Case in India Over Discounting Practices
An antitrust case has been filed against fast-delivery companies Zomato, Swiggy, and Zepto by Indian consumer product distributors, urging the Competition Commission of India (CCI) to investigate alleged predatory discounting practices. The All India Consumer Products Distributors Federation (AICPDF) claims that the deep discounts offered by these quick-commerce platforms are creating unfair pricing models that harm smaller retailers.
The rise of quick commerce—where consumer products are delivered within 10 minutes from local warehouses—has gained popularity among customers but sparked concern among small businesses. The sector, expected to reach $35 billion by 2030, has drawn intense scrutiny, as previous investigations found that e-commerce giants like Amazon and Flipkart had engaged in predatory pricing, benefiting select sellers at the expense of smaller competitors.
The AICPDF, with 400,000 distributor members across India, argues that local brick-and-mortar stores cannot compete with the aggressive pricing strategies of Zomato’s Blinkit, Swiggy’s Instamart, and Zepto, platforms that offer discounts on everyday products such as milk and pulses. Their complaint highlights the negative impact these practices have on independent retailers, particularly smaller stores, which cannot afford to match the prices offered by these larger players.
According to the filing, a variant of Nestle’s Nescafé coffee jar, typically priced at 622 rupees ($7.14) for small retailers, is being sold for as low as 514 rupees on Zepto, 577 rupees on Swiggy Instamart, and 625 rupees on Blinkit, further underscoring the disparity between online and offline prices.
While Zomato, Swiggy, and Zepto have not responded to requests for comment, the filing could add pressure on these companies, which are already under investigation for competition law violations in their food delivery businesses. Zepto, which raised funds last year at a $5 billion valuation, is also preparing for an IPO.
The CCI will review the filing and determine if further investigation is warranted, which could take several months. If the case is found to have merit, it could require these companies to justify their discounting strategies. If dismissed, the case will be closed.