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Quick Commerce Notes (1)

Quick commerce in India has seen a significant growth of 280% over the last two years, reaching a market size of $6–7 billion in 2024, with projections to grow to $40 billion by 2030. While it offers unmatched speed and convenience, the sector faces challenges related to high operational costs, labor conditions, and profitability. The long-term success of quick commerce will depend on balancing instant delivery with ethical and sustainable practices.

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55 views

Quick Commerce Notes (1)

Quick commerce in India has seen a significant growth of 280% over the last two years, reaching a market size of $6–7 billion in 2024, with projections to grow to $40 billion by 2030. While it offers unmatched speed and convenience, the sector faces challenges related to high operational costs, labor conditions, and profitability. The long-term success of quick commerce will depend on balancing instant delivery with ethical and sustainable practices.

Uploaded by

xpert
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Invisible Hands, Visible Impact – Showcasing the hidden labour behind instant

deliveries (warehouse sorters, pickers, packers, and microentrepreneurs).

Chat GPT overview:

Quick Commerce in India – 2024 Snapshot & Future


Outlook
Industry Size & Growth

●​ Quick commerce (q-commerce) has grown 280% in the last 2 years, reaching a
market size of $6–7 billion in 2024.
●​ The sector is expected to grow to $40 billion by 2030.
●​ It currently accounts for about two-thirds of all e-grocery orders in India.​

Users & Consumer Behavior

●​ 26.2 million users in 2024; projected to grow to 60.6 million by 2029.


●​ Approximately 46% of Indian consumers have reduced reliance on local Kirana
shops due to the convenience of q-commerce.
●​ Consumers increasingly expect instant delivery, shaping a new norm in consumption
habits.​

Unit Economics & Financials

●​ Average Order Value (AOV): Typically ₹400 or more per order, which is higher than
traditional retail purchases.​

●​ Cost Per Delivery: Remains high due to:​

○​ Last-mile logistics
○​ Rider incentives and penalties
○​ Maintenance of dark stores and real-time inventory systems​

●​ Profitability: Still elusive for most platforms. Many rely on heavy customer subsidies
and venture funding.​

○​ Long-term sustainability depends on operational optimization and higher


delivery density.
Comparison to Other Models
Model Growth Rate (FY Key Characteristics
2023–24)

Quick Commerce 73% Ultra-fast, high-cost, app-based delivery

Traditional 14% Broader inventory, slower but scalable


E-commerce

Kirana Stores Declining Community-based, personal service, low


overheads

●​ Q-commerce offers unmatched speed but faces challenges in profitability and labor
conditions.
●​ Traditional e-commerce is more stable, but less immediate.
●​ Kirana stores still serve key roles in trust, accessibility, and hyper-local presence,
though they are losing market share.​

Opportunities and Challenges

Opportunities

●​ Expand into Tier 2 and Tier 3 cities with lower competition


●​ Develop sustainable delivery infrastructure (e-bikes, reusable packaging)
●​ Integrate local vendors into the supply chain
●​ Explore alternative ownership models like cooperatives or rider-led platforms​

Challenges

●​ Rising pressure on gig workers with limited protections


●​ Urban traffic congestion and environmental degradation
●​ High delivery cost relative to margins
●​ Increasing regulatory scrutiny on labor and digital commerce​

Summary Insight

Quick commerce is rapidly transforming how urban India shops, driven by convenience and
speed. However, the model is under strain due to high operational costs, difficult unit
economics, and systemic labor issues. Its long-term success will depend on how well it can
balance instant gratification with ethical, scalable, and sustainable service systems.
Key touchpoints in the ecosystem:

Front end:

●​ Smooth and easy to use application


●​ Categorisation and offers
●​ Support services
●​ Order & agent tracking UI
●​ Rider arriving at the door
●​ Groceries are hygienically packed and branded

Back end:

●​ Warehouse picker and sorter


●​ Warehouse person packaging orders
●​ Backend warehouse restockers
●​ Inventory managers
●​ Backend software engineer fixing bugs, glitches adding features
●​ A cafe-based employee making the food (for Zepto Cafe, Swiggy Snacc)
●​ A delivery driver is trying to deliver the final package.

Empathy map pointers:

Says:
●​ The app decides how much we earn.
●​ We get blamed for delays even if it’s the warehouse’s fault.
●​ Incentives keep changing—we never know what we’re working for.
●​ Speed is everything. Safety comes second.
●​ We’re replaceable, that’s how the system treats us.

Thinks:

●​ The system is built for the customer, not for us.


●​ There’s no career path here—it’s just daily survival.
●​ We are constantly watched, but never heard.
●​ What happens if I fall sick or get injured?
●​ We make the city run, but no one sees us.

Sees:

●​ Delays and chaos at pickup hubs and dark stores


●​ Other workers were stressed, exhausted, or waiting endlessly
●​ Digital dashboards, performance trackers, and delivery timers
●​ No clean rest areas, no support, no breaks
●​ Customers tapping their phones while they hustle through the streets

Does:
●​ Juggle multiple platforms to increase earnings
●​ Respond instantly to app instructions and pings
●​ Wait at high-demand zones without facilities
●​ Navigate unsafe roads, bad weather, and traffic
●​ Handle packages, verify orders, and resolve last-minute changes

Feels:

●​ Invisible, exploited, and undervalued


●​ Pressured by targets and penalties
●​ Isolated from decision-making
●​ Proud of their work but disheartened by the system
●​ Tired—physically, emotionally, and economically

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