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May 6, 2024: The Times of India

Mumbai: Two years ago, people laughed off the concept of quick commerce or instant deliveries. Some even asserted that consumers do not need products in 10-15 minutes.
Today, however, quick commerce is fast becoming ubiquitous for many millennial and Gen Z households. Companies have moved beyond groceries to deliver items ranging from fans and T-shirts to jewellery and iPhones,reports Asmita Dey.


In a recent note, Goldman Sachs said Blinkit’s implied valuation — estimated at $13 billion — is now higher than that of parent Zomato’s core food delivery business, indicating the rapid growth of the segment. Though still largely a metro play, Q-commerce is finding takers in cities like Vizag, Nagpur, Kochi, Jaipur and Lucknow, executives at Swiggy Instamart and BigBasket told TOI.

‘Q-commerce accounts for 50% of online grocery mkt’

“In the past one year, half the new customers that we have added are all pure play quick commerce customers, who often do not make planned purchases and end up buying 4-15 times a month from our platform,” said Seshu Kumar Tirumala, chief buying and merchandising officer at BigBasket.


For Swiggy, growth of Instamart in non-metros like Jaipur and Kochi has more than doubled in the past 12 months. “Given the wide array of products, we are seeing good traction in both metros and nonmetros,” said Phani Kishan, CEO, Swiggy Instamart. 
With platforms like Zepto, Swiggy Instamart and Blinkit expanding into categories like beauty and personal care (BPC), toys, electronics, stationery items, a percentage of ecommerce sales is bound to get impacted. Non-grocery items account for about 15%-20% of quick commerce purchases.


“If consumers can get a toy or a BPC item on a quick commerce platform instantly, they won’t wait for Amazon and Flipkart. That is why players like Flipkart have started working on the quick commerce model,” Meena said. “Consumers have been ordering everything, from gold coins during the festive season to air purifiers, FASTags, headphones, toys and more,” said Kishan.


Goldman Sachs estimates size of online grocery market, in terms of gross order value (GOV), to be about $11 billion as of FY24. Of this, quick commerce already makes up 50% or $5 billion. Q-commerce platforms have also been able to price products about 10%-15% cheaper than local kirana stores, giving them an edge in the game. “Given the scale of platforms such as Blinkit, they are able to get pricing/sourcing advantage from manufacturers,” said analysts at the firm.


In terms of wallet share, Qcommerce accounts for 5%-6% of a household’s grocery spends. This can go up to 10%-15% in years to come given rising adoption, said Karan Taurani, senior VP, Elara Capital.