10-minute delivery service gains traction in India despite its struggles worldwide, know what sets the Indian market apart?

Quick Grocery Commerce (QGC) has faced challenges globally but is finding success in India. Presently, three major players dominate the QGC segment in India: Blinkit, Zepto, and Swiggy's Instamart, according to industry experts quoted by the news agency IANS. Despite none of these startups turning profits yet, their rapid expansion is notable.

Market share dynamics

In the battle for dominance, Blinkit, Zepto, and Instamart are fiercely competing, offering cashback incentives and striving for widespread adoption. Blinkit currently commands a substantial 45% market share, followed by Instamart at 27% and Zepto at 21%. Additionally, Big Basket holds approximately 7% of the market. Blinkit's edge lies not only in its market share but also in its diverse product range, delivering items like iPhones and gaming consoles within 10 minutes.

The Indian advantage

One key factor driving the success of QGC in India is the country's dense population. With people living in close proximity, the demand for quick delivery services surges. Moreover, the prevalence of high-rise apartments and numerous grocery stores facilitates efficient service delivery, enabling startups to operate at low costs.

Catering to convenience

The rising popularity of QGC is largely fueled by Gen G and Millennials, who prioritise convenience. Reports suggest that 90% of platform users belong to these demographics. This demographic cohort's aversion to waiting dovetails with the appeal of rapid delivery, even if it comes with a premium. Moreover, consumers increasingly weigh the time and cost savings of home delivery against the hassle of traditional shopping trips.

Market growth trajectory

According to market intelligence firm RedSeer, India's QGC market is experiencing exponential growth. Last year, it surged by 77% year-on-year, reaching a gross merchandise value (GMV) of $2.8 billion. Blinkit alone commands a GMV of around $1.7 billion.

Financial outlook

While Blinkit has shown promising revenue figures, reaching Rs 2301 crore in the last financial year, its profitability remains uncertain. The company has achieved positive Adjusted EBITDA this year, yet profitability remains elusive. Zepto's revenue soared to Rs 2024 crore in 2023, but its losses also escalated. Swiggy's Instamart, with revenue of approximately Rs 2036 crore in the previous financial year, is also grappling with losses.

In conclusion, the unique dynamics of India's population density, coupled with shifting consumer preferences, have propelled the rise of Quick Commerce in the country, presenting both challenges and opportunities for startups in this burgeoning sector.