Amazon has entered the quick commerce arena in India, initiating a pilot program last month that underscores the intensifying competition in the South Asian market. This move comes as quick commerce firms increasingly cannibalize the traditional e-commerce market share, compelling established players to revamp their supply chains to meet evolving consumer demands. The industry is now in a "land grab mode," with companies adopting aggressive strategies to capture market share.
Zepto, ranked as the No. 2 player in India's quick commerce sector, is rapidly expanding its network of dark stores, advancing its schedule to capitalize on burgeoning demand. Meanwhile, Swiggy, India's third-largest quick commerce platform, made headlines last year with the largest tech IPO globally in 2024. Amidst these developments, Zomato's core food delivery business is experiencing slower growth, registering a 17% year-over-year increase in the latest quarter. In contrast, quick commerce has surged with a 120% year-over-year growth rate.
Blinkit, a leader in the quick commerce space, is aggressively expanding its operations despite anticipating continued losses. Over the last two quarters, Blinkit added 368 stores and expanded its warehousing space by 1.3 million square feet. The company reported losses of 103 crore rupees ($11.9 million) in Q3FY25 but aims to reach 2,000 dark stores by December 2025, a year ahead of its previous target.
"The biggest impact of the intensifying competition has been the acceleration in customer awareness and adoption of quick commerce," stated Albinder Dhindsa.
Investment in store rentals, product discounts, and loyalty programs is rampant as companies vie for dominance. Zepto's financial backing of over $1 billion last year has been instrumental in its accelerated growth trajectory. Concurrently, Flipkart joined the quick commerce race last year and has since established more than 100 dark stores to fortify its position.
"As we continue to bring forward store expansion, our networks may have to carry a greater load of under-utilized stores which will impact near-term profits in the next one or two quarters," noted Akshant Goyal.
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