In Indium's Cramped Urban Centers, Food Delivery Apps Reap Profits
India's Rapid Growth in Quick Commerce
In India's financial hub, Mumbai, the decades-old tradition of "dabbawalas" delivering home-cooked meals has evolved into a burgeoning market for quick commerce. Today, young entrepreneurs are utilizing shopping apps to provide instant delivery of goods, from groceries to electronics, transforming the retail landscape in the country.
This speedy commerce, often referred to as quickcommerce, has gained traction across India, disrupting both e-commerce titans like Amazon and traditional "mom and pop" stores. In cities like Mumbai, companies like BigBasket have built logistical networks, with warehouses known as "dark stores," where orders are fulfilled and delivered within minutes. The efficiency and convenience offered by these platforms have attracted millions of customers, particularly in densely populated urban areas.
Growth in the quick commerce sector has been significant, with estimates indicating a compounded annual growth rate (CAGR) of over 60 percent for the next two to three years [1]. Sales in India have increased from $100 million in 2020 to an estimated $6 billion in 2024 [2]. With such strong growth and projections to reach $40 billion by the end of the decade, India's quick commerce market could ultimately surpass its European and American counterparts.
The rapid expansion of the quick commerce industry can be attributed to several factors, including the scale of urban populations living within walking distance of these "dark stores," and the lack of conventional supermarkets in many regions. As a result, the revenue potential for companies operating within these catchment areas is high.
While local players have made swift progress, they face increasing competition from global players like Amazon, Walmart-owned Flipkart, and Mukesh Ambani's Reliance Industries, who are now launching their own quick commerce offerings [3]. To maintain a competitive edge, established e-commerce giants are investing in building logistic networks within cities to deliver goods speedily and efficiently.
As the quick commerce market evolves, its potential impact extends beyond consumers and traditional retailers. The Confederation of All India Traders, an industry group representing over 90 million small businesses, has expressed concerns about the sector, likening it to the historical East India Company, which exploited India for centuries during colonial rule [4].
Despite these concerns, the convenience offered by quick commerce platforms continues to draw customers. For instance, Rinish Ravindra, a regular user, admits to feeling lazy but prefers the unbeatable convenience of these platforms. As consumers increasingly turn to quick commerce for their shopping needs, the future of this sector seems set to shape Indian retail trends further.
(Except for the headline, this story has not been edited by our website staff and is published from a syndicated feed.)
Technology plays a significant role in the growth of India's quick commerce market, as innovative shopping apps enable instant delivery of goods. This rapid expansion of quickcommerce is further fueled by advancements in logistics and efficient dark store networks.
The inflated pace of India's quick commerce industry could potentially lead to inflationary pressures due to increased competition and the high demand for goods, further impacting the retail landscape in the country.
