The rapid rise of quick commerce in India is reshaping the retail landscape, with urban populations progressively seeking fast delivery services for daily necessities. The food collection take-away segment in India is projected to register a compound annual growth rate (CAGR) of over 7.7% during 2023–28^. As consumers increasingly rely on instant access and time-saving services, the number of quick commerce options has proliferated, driving their swift expansion in the country, says GlobalData, a leading data and analytics company.
Shravani Mali, Consumer Analyst at GlobalData, comments: “The COVID-19 pandemic has played a crucial role in driving the shift to quick commerce, as consumers prioritized safer and more convenient shopping methods. Quick commerce platforms are addressing this need by offering rapid delivery services that allow consumers to order groceries, household items, and ready-to-eat meals with ease. For instance, the q-commerce service provider Blinkit, owned by Zomato, launched Bistro app to deliver food in 10 minutes to compete with the already existing quick food delivery apps such as Swiggy’s Bolt and Zepto Café to grab the opportunity in the quick commerce industry.
“The rapid rise in popularity of quick commerce in recent years has created lucrative opportunities for key players in the market. In Q3 2024, Zomato, an Indian food delivery company, recorded a 55% year-on-year (Y-o-Y) growth in gross order value (GOV).”
Francis Gabriel Godad, Business Development Manager, India at GlobalData, notes: “Online food delivery is a booming market in India with an ever-increasing base of consumers seeking inaccessible and personalized products delivered at home. In terms of key generation groups that are driving demand, younger generations are likely to gravitate towards online platforms. This can be substantiated in a recent GlobalData survey, wherein 54% and 50% of Gen Z and Millennials, respectively, in India claim to have a very/quite high spending on food delivery*.”
Mali adds: “Consumers, particularly working couples and mothers, are gravitating towards quick commerce solutions due to their hectic lifestyles. According to the statistics reported by the Ministry of Statistics & Programme Implementation, in urban India, the labor force participation rate increased from 47.6% in 2017-18 to 52.0% in 2023-24. Hence, the rising adoption of time-saving services is a prominent factor that is stimulating the demand for quick commerce services.”
Godad continues: “The industry’s rapid expansion is also expected to generate significant employment, especially for the semi-skilled workforce. A large portion of employment opportunities will be for delivery personnel and warehouse and logistics staff. Moreover, numerous quick commerce companies partner with local retailers and small businesses to source products. This partnership provides additional revenue for these businesses and enables them to access a wider customer base through digital channels.”
Mali concludes: “In conclusion, the rapid rise of quick commerce in India marks a significant shift in consumer behavior, fueled by technological advancements and evolving lifestyle preferences. As the demand for instant delivery grows, companies that swiftly adapt through innovation, strategic collaborations, and improved service offerings are likely to succeed in this competitive environment.”
^GlobalData Retail Intelligence Center – Market Analyzers, accessed in November 2024
*GlobalData Q3 2024 Consumer Survey – India, published in October 2024, with 500 respondents
