Two-Thirds of All E-Grocery Orders in 2024 Driven by India's Quick Commerce Sector

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Posted by NewAdmin on 2025-03-28 08:58:20 |

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India's quick commerce sector accounted for more than two-thirds of all e-retail orders in 2024, with its total market share expanding nearly fivefold to reach $6-7 billion compared to 2022, according to a report by consultancy firm Bain & Company and e-commerce giant Flipkart. The sector, led by players like Zomato-owned Blinkit, also made up about 10% of the total dollars spent on e-retail in 2024, the report revealed on Wednesday.

Quick commerce platforms, which deliver a wide range of products from groceries to electronics in under 30 minutes, are expected to see their market share grow by over 40% annually through 2030. This growth will be driven by the expansion of new product categories, geographic areas, and consumer segments. The report described the rise of quick commerce as one of the most defining trends in India’s e-retail market over the past two years, noting that the sector had over 20 million annual online shoppers and employed more than 400,000 people.

However, challenges lie ahead for these platforms in terms of profitability. Expanding into markets beyond major cities and facing tough competition from larger e-commerce players like Flipkart could pose significant hurdles. To maintain profitable growth, the report suggests that companies will need to adjust their business models for smaller markets, manage increasing competition, and optimize their supply chains.

The report comes at a time when major players such as Flipkart Minutes, Myntra's M-now, BigBasket's BB Now, and Amazon's Tez have launched their own quick commerce platforms. Despite this rapid growth, some experts warn that the boom may not last. A report from Blume Ventures last month suggested that the sector could struggle to sustain its current pace of growth. TVS Capital Funds Chairman Gopal Srinivasan also expressed concerns in an interview with Reuters, calling the quick-commerce frenzy a “passing fad” that may be unsustainable in the long term.

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