Retail in India
Quick Commerce: Groceries in Ten Minutes
How apps like Blinkit, Zepto and Swiggy Instamart deliver groceries in minutes using dark stores, why investors backed them, and the concerns about profits, workers and kiranas.
In Indian cities, you can order milk, vegetables, snacks or even a phone charger and receive it in ten or fifteen minutes. This is quick commerce, one of the fastest-growing parts of Indian retail.
The players
- Blinkit, owned by Zomato’s parent company Eternal.
- Zepto, a start-up founded in 2021.
- Swiggy Instamart.
- Others, including Flipkart Minutes, BigBasket and Amazon, entered too.
How it works: dark stores
Quick commerce relies on dark stores: small warehouses located close to customers, often within 2 to 3 kilometres, not open to walk-in shoppers.
- Each dark store stocks a few thousand fast-selling items.
- When an order arrives, staff pick and pack it in a couple of minutes.
- A delivery rider covers a short distance quickly on a two-wheeler.
Why it grew
- Dense cities with many customers close together.
- Cheap labour for picking and delivery.
- Busy urban households valuing convenience.
- Investor funding that subsidised growth.
The unit economics
Making money is hard:
- Orders are small, so delivery costs are a large share of each order.
- Companies earn from margins, delivery fees, advertising by brands and higher-margin products like electronics.
- Average order values must rise and dark stores must be busy to break even.
Concerns
- Kiranas: distributors’ associations complained to the CCI that quick commerce firms used deep discounts that harm small shops and traditional distribution.
- Delivery workers: pressure to deliver fast raises safety concerns; workers are gig workers with limited protections. Some platforms dropped “10-minute” branding after criticism.
- Food safety: regulators inspected dark stores after hygiene complaints.
- Sustainability: heavy spending on discounts may not last.
Consumer behaviour
Quick commerce has changed habits: more frequent, smaller orders and impulse purchases.
At 11 pm, a student realises he needs printer paper for an assignment due tomorrow. He orders it on an app and receives it in 12 minutes from a dark store two kilometres away. The convenience comes with a delivery fee and a gig worker's late-night ride.
It relies on dense networks of dark stores near customers, a different model from large central warehouses.
- Quick commerce delivers groceries in 10 to 15 minutes using nearby dark stores.
- Blinkit, Zepto and Swiggy Instamart lead the market.
- Small orders make profitability challenging.
- Concerns include kiranas, delivery worker safety and food hygiene.
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