Quick Commerce: Revolutionizing the Online Grocery Marketplace

A recent report by Bain & Company reveals that quick commerce now constitutes a substantial 70-75% of e-grocery orders, a marked increase from 35% in 2022. The increasing appeal of quick commerce is catalyzing industry competition, boosting D2C brands, and enhancing profitability through strategic advancements.

Quick commerce is swiftly transforming the online grocery landscape, now responsible for 70 to 75 percent of all e-grocery orders, as per a recent study by Bain & Company. This marks a considerable surge from approximately 35 percent in 2022, propelled by effective execution, rising incomes, diverse product offerings, and the burgeoning need for convenience.

The report underscores that the burgeoning appeal of quick commerce is reshaping competitive dynamics. Prominent players such as Flipkart Minutes, Nykaa, and Myntra have ventured into this space, alongside newer entrants like Swish and Slikk, intensifying the market rivalry.

Anticipated to further drive industry innovation and growth, quick commerce platforms are optimizing logistics with 'back' dark stores stocked with high-demand items linked to multiple 'forward' stores. The segment's profitability is rising due to expanded product categories, increased average order values, and the higher share of high-margin goods like D2C products.

The direct-to-consumer (D2C) brands are benefiting from improved market access and precise marketing strategies on quick commerce platforms. Startups are allocating budgets specifically for quick commerce to boost their visibility and sales.

Operational efficiencies are improving; more dark stores now handle over 1,000 orders daily, reducing costs. Logistic densification cut per-shipment costs by 25 percent in 2024 compared to 2023. Such strategic enhancements are securing quick commerce's rapid growth trajectory, reinforcing its dominance in the e-grocery sector.

(With inputs from agencies.)