In 2021, Blinkit (formerly Grofers) shocked India by promising groceries in under 15 minutes. Many dismissed it as a marketing gimmick, but fast forward to today, and India’s $100 billion e-commerce market is in a race to deliver ever faster: Ola now delivers meals in 10 minutes via ONDC, Myntra ships fashion in 30 minutes, and Swiggy’s Instamart has even surpassed its own food delivery arm in speed. Urban Indians now expect 20-minute deliveries as the baseline—anything slower feels outdated.
But behind the hype, a critical question looms: Is this sprint to the finish sustainable, or are we barreling toward a logistical reckoning? The rapid rise of quick commerce is reshaping retail in ways few predicted. While dark stores, drones, and data analytics are driving the speed revolution, concerns about profitability, environmental impact, and worker exploitation are bubbling beneath the surface.
This explosion of fast deliveries is more than just a race against the clock—it’s a high-stakes experiment that could fundamentally change how we shop. But, with the promise of convenience comes a host of challenges that need to be addressed if the sector is to remain viable in the long run.
When Amazon entered the Indian market in 2013, its promise of 2-day delivery was groundbreaking. By 2023, however, the bar had been raised significantly. Consumers, trained by the likes of Zomato’s 30-minute pizza deliveries and PharmEasy’s emergency medicine drops, now demand even more immediacy. This shift reflects a global trend, seen in China where platforms like Meituan are fulfilling over a million orders a day in under 30 minutes.
But in India, this rapid pace is even more challenging due to infrastructure gaps, making the promise of quick commerce even riskier. Companies like Zepto, which entered the market in 2021, are now competing head-to-head with Blinkit, both operating hundreds of “dark stores” strategically located within high-demand areas. This race doesn’t just hinge on infrastructure—it’s a psychological play as well. Neuroscience shows that instant rewards trigger dopamine surges, fostering addiction-like loyalty.
As a result, 60% of urban buyers admit they would pay a premium for faster deliveries. But as speed becomes the norm, there’s a growing concern about reaching a “speed ceiling,” where further acceleration no longer improves customer satisfaction. Behind the scenes, the quick commerce engine is powered by an army of dark stores and AI algorithms. Blinkit, for example, operates over 300 micro-warehouses stocked with thousands of SKUs tailored to local preferences, often in locations that are just a few kilometers away from their customers.
These dark stores are hyper-efficient, designed to pick and pack items with the precision of a Formula 1 pit stop. But they come at a cost, especially in expensive urban locales like Mumbai and Delhi, where rents can range from ₹5 to 10 lakh per month. At the same time, AI plays a critical role in predicting demand. Swiggy Instamart’s algorithms, for instance, use data on weather, viral trends, and even local traffic patterns to forecast spikes in demand. During the 2023 floods in Bengaluru, this AI system rerouted thousands of orders via electric bikes, cutting delivery times by 35%.
However, these advancements have a human cost. Delivery partners, often gig workers, face immense pressure to meet strict delivery timelines. In cities like Mumbai, a delivery worker for Zepto shared that they are penalized ₹50 for every minute they’re late, with their GPS tracked around the clock. This pressure results in high turnover rates, often exceeding 40%, as burnout becomes a serious issue.
Not all parts of India are equally enamored with speed, though. In tier-2 cities, where price sensitivity trumps speed, 70% of shoppers in Surat, for example, abandon their carts if the delivery fee exceeds ₹49, compared to just 35% in Mumbai. In these markets, consumers are more willing to wait, especially for higher-value items like sarees or organic food. Myntra’s M-Now 30-minute fashion delivery works well in metros, but non-metro customers are more likely to choose cash-on-delivery and appreciate the option to return items hassle-free.
As a result, businesses in these regions are beginning to carve out their own niches, blending quick delivery with added services like at-home trials or flexible return policies. But while consumers may love the speed, the economics of quick commerce remain a tough puzzle. Reports show that companies are losing anywhere between ₹50 to ₹100 per order, with Blinkit’s average order value hovering around ₹500. Between rent costs, delivery logistics, and steep discounts, margins are razor-thin.
For startups like Zepto, which has raised significant funding, the pressure to turn a profit by 2025 is mounting. To stay afloat, these companies are exploring new revenue streams, such as in-app ads (Swiggy Instamart monetizes through partnerships with brands like Colgate) and subscription services (such as Blinkit’s “SuperSaver” plan, which offers free deliveries for a monthly fee). Blinkit has also leaned into private-label products, which offer higher margins, such as its own line of atta and snacks, accounting for 15% of its revenue.
Yet, while quick commerce thrives in urban areas, there’s an elephant in the room: sustainability. The carbon footprint of these fast deliveries is staggering. A single 15-minute order generates 500 grams of CO2—six times more than traditional e-commerce. With half a million daily orders, that’s 250 tons of CO2 per day. While some companies are transitioning to electric vehicles, 80% of fleets still rely on petrol-powered bikes.
The packaging dilemma also looms large. Blinkit’s shift to biodegradable bags raised the cost per order by ₹4, which resulted in a 5% dip in margins. In contrast, Reliance’s QuickCommerce has reduced waste by 70% by using reusable crates, providing a glimpse of a more sustainable future. Looking ahead, drones are seen as the next frontier in the battle for speed. However, regulatory challenges and safety concerns, particularly in crowded urban centers, could slow their widespread adoption.
In 2024, Marut Drones will begin piloting medicine drops in Telangana’s rural areas, where the lack of infrastructure makes drone delivery a potential game-changer. Meanwhile, experts predict that by 2026, the quick commerce sector will see significant consolidation, with only 3 to 4 major players dominating the market. Reliance’s acquisition of Dunzo and Tata’s discussions with BigBasket are clear signs of this trend.
Smaller players may pivot to niche markets, offering ultra-fast deliveries for specialized products like luxury pet food or eco-friendly goods. In the end, quick commerce isn’t just about speed. It’s an experiment in consumer psychology, operational innovation, and survival. The companies that succeed won’t necessarily be those that can deliver the fastest, but those that can balance speed with sustainability, profitability, and a focus on their workers and customers.
As Aadit Palicha, founder of Zepto, aptly puts it, “We’re not just building a delivery app. We’re rewiring how India shops.” The question is not if quick commerce will evolve—it’s how, and in that answer lies the future of Indian retail.
*Disclaimer: The views expressed in this article are those of the author and do not reflect the opinions of the Business Headline staff.
