In an era where time is increasingly equated with money, a seismic shift is underway in India’s e-commerce sector. Quick commerce (Q-commerce), once limited to the realm of grocery delivery, has exploded into a broader retail revolution. What was once considered an innovation in logistics is now becoming a consumer expectation—an expectation driven by a new breed of hyper-efficient delivery systems capable of bringing products to your doorstep in a matter of minutes, not days.
A New Retail Paradigm
Quick commerce has been gaining traction in India since 2020, fueled by urban India’s demand for immediacy and convenience. At its core, Q-commerce promises deliveries within 10 to 30 minutes, challenging the traditional e-commerce model that typically spans 24 to 48 hours. The quick commerce market in India is valued at $3.34 billion in 2024 and is expected to reach $9.95 billion by 2029. This is a compound annual growth rate (CAGR) of over 4.5%. Also, the quick commerce industry is growing faster than the traditional e-commerce business.
Historically, platforms like Amazon and Flipkart dominated this space with their vast catalogs of products. However, in recent years, players such as Blinkit (formerly Grofers), Instamart (owned by Swiggy), Bigbasket (Tata-owned) and Zepto have emerged as disruptors, capturing significant market share with their rapid deliveries. These platforms are not only redefining customer expectations but also reshaping the very nature of consumer loyalty.
For Indian consumers, the appeal is clear. Whether it’s a loaf of bread, a smartphone, or a luxury fashion item, the need to have it delivered within minutes—rather than waiting for days—has become more than just a convenience. It’s fast becoming a standard of service. And with this shift in consumer expectation, the stakes in the e-commerce game have been raised dramatically.
Changing the Game
In the early days of Q-commerce, grocery delivery platforms such as Blinkit, Bigbasket, and Instamart were primarily focused on essentials—milk, eggs, bread, and fruits. However, the real disruption came when these platforms began to diversify their offerings. Blinkit, for example, now offers everything from fashion and beauty products to electronics and home appliances, making it a direct competitor to traditional e-commerce giants like Amazon and Flipkart.
Blinkit’s business model is simple but effective. By building out a network of small, hyperlocal fulfillment centers (or dark stores), Blinkit can stock high-demand items close to consumers, allowing for lightning-fast deliveries. As of 2024, Blinkit’s revenue run rate is estimated at around Rs. 12,000 crore (roughly $1.5 billion), with Instamart trailing at Rs. 8,000 to Rs. 8,500 crores. Their ability to scale quickly and deliver across various product categories gives them a distinct edge in this high-stakes race.
This rapid expansion into higher-value goods, including high-ticket items like smartphones, gaming consoles, and laptops, has caught the attention of India’s largest e-commerce players. The PS5, which was once an item that could take several days to ship, can now be delivered to customers within 10 minutes in certain areas. This is a game-changing shift, forcing incumbents like Amazon and Flipkart to rethink their delivery strategies and adopt faster service models.
BigBasket, the Tata-owned e-grocery giant, has also made a strategic shift towards quick commerce, and the move is already paying off. Its BB Now service, offering deliveries within 10 to 30 minutes, has become a significant driver of growth, now accounting for over 50% of the company’s sales. This pivot is helping BigBasket stay competitive in an increasingly fast-paced retail environment, where consumer expectations for speed and convenience are rising.
The transition to quick commerce has contributed to a notable revenue surge. For FY24, BigBasket’s operating revenue crossed Rs. 10,000 crore, a strong performance that, despite a loss of Rs. 1,415 crore, signals progress in its long-term growth strategy. To further fuel this momentum, BigBasket is focusing on retaining and expanding its user base through ultra-fast delivery options, a critical factor in the battle for customer loyalty.
Looking ahead, BigBasket plans to broaden its product offerings beyond groceries, eyeing categories like toys, general merchandise, and fashion to capture a larger share of India’s growing e-commerce market. With its combination of speed, convenience, and a rapidly expanding product range, BigBasket is well-positioned to become a prominent player in quick commerce and the broader retail sector.
Amazon and Flipkart’s Moves
Amazon, a pioneer in India’s e-commerce sector, is scrambling to adapt to the changing landscape. The company has invested heavily in its grocery segment with Amazon Fresh and Pantry, only to later consolidate its offerings into a single, unified platform. Despite this, Amazon Fresh has struggled to gain the same traction as Blinkit and Instamart, which have carved out a more substantial presence in the Q-commerce space.
In November 2021, Amazon Fresh attempted to establish itself as a one-stop-shop for grocery and essentials, but it has been slow to build the kind of consumer loyalty that Blinkit and others have fostered. While Amazon remains a dominant player in the traditional e-commerce space, its delayed entry into Q-commerce—coupled with the increasing popularity of hyper-local delivery services—poses a threat to its long-term position.
Flipkart, on the other hand, has already launched its own Q-commerce service, Flipkart Minutes, promising deliveries within 10-30 minutes in select cities. However, Flipkart’s earlier attempts with Flipkart Quick and Supermart faced infrastructure bottlenecks, which hindered their effectiveness. This time around, Flipkart’s quick commerce ambitions will need to overcome logistical challenges and scale effectively to compete with Blinkit and Instamart.
Reliance’s Silent Expansion
As Amazon and Flipkart race to catch up, another titan is quietly positioning itself to dominate India’s online retail market: Reliance Industries. Already the largest retailer in India with over 18,000 physical stores across Tier 1 and Tier 2 cities, Reliance has the infrastructure and resources to leapfrog over traditional e-commerce players. Through its e-commerce arm, JioMart, and its growing Q-commerce efforts, Reliance is consolidating its position as a formidable challenger.
Reliance’s strategy is multifaceted. By leveraging its extensive retail network, mobile infrastructure, and deep penetration into the Indian market, the company is rapidly expanding its online presence. The integration of Ajio (fashion) and Tira (beauty) into the JioMart umbrella, along with pilot programs for Q-commerce, could give Reliance the necessary edge to rival Amazon and Flipkart. JioMart’s ability to offer hyper-localized services—especially in the lower-tier cities—could also allow it to capture a larger slice of the rapidly growing value-conscious consumer segment.
Who Will Win?
With Reliance’s resources, Blinkit, Bigbasket, Zepto, and Instamart’s agility, and Amazon and Flipkart’s established user bases, India’s e-commerce and Q-commerce markets are becoming increasingly competitive. Each player is vying for a unique piece of the pie, but the question remains: who will emerge victorious in the long run?
Challenges on the Horizon
While the promise of ultra-fast deliveries is enticing, the infrastructure challenges remain significant. Q-commerce relies heavily on a network of hyperlocal fulfillment centers, real-time inventory management, and a robust last-mile delivery system. The logistics required to meet the demand for such speed in diverse regions of India—especially Tier 2 and Tier 3 cities—will test the limits of these platforms. Furthermore, the profitability of these services remains uncertain, as the costs of maintaining such an expansive and efficient infrastructure are high.
Moreover, consumer loyalty is still in flux. While the allure of speed is strong, the quality of service—be it product quality, delivery reliability, or customer support—will ultimately determine which platforms succeed. The battle for brand loyalty is no longer just about discounts or pricing but about creating a seamless, convenient, and personalized shopping experience.
The Future: A Unified, Fragmented Market?
As we look ahead, the future of India’s e-commerce landscape will likely be shaped by the convergence of two distinct trends: the rise of hyper-local, quick commerce and the continued dominance of traditional e-commerce platforms. The growing focus on quick commerce could lead to a more fragmented market where specialized players—such as Blinkit and Instamart—dominate in specific niches (groceries, electronics, etc.), while Amazon and Flipkart maintain their stronghold over a broader product range.
Reliance’s strategy of integration, consolidation, and local penetration, combined with its massive retail footprint, could eventually position it as the most formidable competitor. Yet, whether Amazon can court success in Q-commerce, or whether Flipkart can overcome its past failures, remains to be seen.
In any case, the Indian consumer stands at the center of this revolution. As demand for faster, more efficient services continues to rise, one thing is clear: the next phase of India’s e-commerce journey promises to be a thrilling ride, filled with innovation, fierce competition, and an ever-expanding range of choices.
