Quick commerce is revolutionizing the online grocery industry, now commanding 70-75% of total e-grocery orders, according to a recent Bain & Company report.
This marks a dramatic rise from approximately 35% in 2022, reflecting a growing consumer preference for speed and convenience.
the surge in quick commerce is attributed to strong operational execution, increasing disposable incomes, a wider variety of available products, and a heightened demand for rapid delivery services.
The report states, “Robust customer traction, Quick commerce already accounts for 70-75% of e-grocery orders (vs. approx. 35% in 2022).”
The booming quick commerce sector is reshaping competition in the e-grocery market. Established giants like Flipkart Minutes, Nykaa, and Myntra have ventured into the space, while new entrants such as Swish and Slikk are also making their presence felt.
To meet increasing demand, quick commerce platforms are optimizing storage and logistics. Companies are adopting a hub-and-spoke model, setting up ‘back’ dark stores in high-demand locations, connected to 4-5 ‘forward’ dark stores.
These back-end facilities stock an additional 3,000-4,000 premium and high-value products to serve a broader customer base.
The rise of quick commerce is also fuelling the growth of direct-to-consumer (D2C) brands. the report highlights that enhanced market reach and hyper-targeted marketing strategies are enabling D2C startups to leverage quick commerce platforms as key sales channels.
Many D2C brands are now allocating dedicated budgets to quick commerce to boost their visibility and sales.
The financial outlook for quick commerce is improving, driven by multiple factors. Companies have expanded product categories and raised the free delivery threshold, leading to a 40% increase in average order value (AOV) between FY23 and FY25.
Additionally, the growing share of high-margin products, such as D2C offerings, along with new revenue streams like advertising, has improved gross margins by 3-4 percentage points.
Operational efficiencies are also on the rise, with dark stores now handling over 1,000 orders per day, resulting in better cost management. However, logistical densification has led to a 25% reduction in per-shipment costs in 2024 compared to 2023.