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March 13, 2025
Table of Content
Quick commerce business model focuses on super-fast product deliveries within 10-30 minutes, that cater to essential items like groceries, stationeries, and pharmacies.
This model combines traditional e-commerce with advanced logistics, focusing on essentials like groceries and medicines.
The global q-commerce market has seen remarkable growth, reaching approximately $170.8 billion in 2024, and is expected to hit $265.7 billion by 2029, growing at a CAGR of 9.24%.
Some estimates project even faster growth, anticipating the market to touch $626.5 billion by 2033 with a CAGR of 23.5%.
This surge is driven by evolving consumer preferences and rapid technological advancements in supply chain management.
With major global players like Grab, Delivery Hero, and GoPuff driving the market, q-commerce companies rely on hyperlocal inventory, dark stores, and efficient logistics to fulfill orders swiftly.
This blog will delve into their business models and revenue streams, uncovering how these companies operate and capitalize on this rapidly growing market.
Let us get started!
The customer browses through the app, selects the desired products (such as groceries, snacks, or daily essentials), and places an order through the mobile app.
Once the order is placed, the platform automatically assigns the order to the nearest dark store based on the customer's location. The store staff quickly picks and packs the items to ensure the order is ready for dispatch in a matter of minutes.
Simultaneously, the platform assigns a nearby delivery partner to fulfill the order. The delivery partner receives an instant notification about the order, along with the pickup location and the shortest delivery route.
The customer can track the entire journey of their order through the app, from the moment the order is confirmed, packed, and handed over to the delivery partner, up to the delivery at their doorstep.
The delivery partner arrives at the designated dark store, collects the packed order, and immediately heads toward the customer's location.
Leveraging optimized delivery routes, the delivery partner ensures the order reaches the customer within 10 to 30 minutes. Some platforms even guarantee deliveries in as little as 10 minutes, minimizing wait times.
Once the delivery partner hands over the order to the customer, the platform may prompt the customer to provide feedback on their experience. This helps the platform improve service quality and delivery efficiency.
In the background, the dark store automatically updates its stock levels after each order to avoid shortages. The platform may also notify suppliers for restocking if inventory levels fall below a certain threshold.
Quick commerce platforms operate by leveraging several key components to achieve ultra-fast delivery, often within 10-30 minutes.
Here's a list of key components,
These platforms use advanced systems to track inventory in real-time. This ensures that products listed online are available in nearby fulfillment centers, allowing for immediate dispatch upon order placement.
Quick commerce relies on dark stores, which are small, strategically located warehouses that store high-demand items like groceries and essentials. These facilities are not open to the public and are designed to minimize delivery times by being close to urban areas.
Platforms integrate with partnered delivery personnel and optimize delivery routes to ensure rapid order fulfillment. This often involves using data analytics and AI to streamline logistics.
Quick commerce platforms offer user-friendly apps with features like personalized product recommendations and real-time inventory updates. This enhances the shopping experience and encourages repeat business.
These platforms provide a variety of payment methods, including credit cards, mobile wallets, and pay-later services, to reduce checkout friction and enhance user convenience.
Consumers of Quick commerce platforms are usually urban, convenience driven consumers who prioritize speed and flexibility in their shopping experiences. These customers often seek essentials like groceries, personal care items, and medicines.
Typically younger, tech-savvy individuals with busy lifestyles value the convenience of ultra-fast delivery. And elderly and physically challenged people who find it difficult to shop for essentials by themselves.
Ultra-fast delivery is a cornerstone of quick commerce platforms, promising customers that their orders will be delivered within a remarkably short timeframe of 10-30 minutes.
This speed significantly outpaces traditional e-commerce, which often takes days to deliver products. By leveraging strategically located dark stores and optimized logistics, quick commerce companies ensure that customers can receive their essentials almost instantly, making it ideal for urgent needs or last-minute purchases.
Quick commerce platforms offer unparalleled convenience by allowing customers to shop at any time and from any location using mobile apps or websites.
This flexibility is particularly appealing to busy urban dwellers who may not have the time to physically visit stores.
With just a few taps on their mobile devices, customers can browse, select, and order products, making shopping a seamless and efficient experience.
Reliability is another key value proposition of quick commerce platforms, as they ensure that deliveries are made on time and in a reliable manner.
Many platforms offer real-time order tracking, allowing customers to monitor the status of their orders from the moment they are placed until they are delivered.
This transparency builds trust with customers, who can rely on quick commerce services to meet their needs consistently and efficiently.
Quick commerce platforms provide a one-stop shopping experience by offering a diverse range of essential products, including groceries, personal care items, and medicines.
This convenience allows customers to fulfill all their daily needs from a single platform, eliminating the need to visit multiple stores or websites.
By offering a broad selection of products, quick commerce companies make it easier for customers to manage their daily shopping tasks efficiently, saving them time and effort.
Dark stores are strategically located within urban areas to minimize delivery times, ensuring that products are stored close to the customer base. By maintaining these compact facilities, quick commerce companies can efficiently manage inventory and dispatch orders quickly, reducing the time it takes to reach customers.
Advanced logistics and technology play a crucial role in quick commerce by enabling efficient operations through AI-powered inventory management, GPS tracking, and optimized delivery routes.
These technologies help streamline processes, reduce errors, and enhance the overall delivery experience by providing real-time updates and ensuring that orders are fulfilled rapidly.
Delivery partners, often consisting of networks of gig economy workers or partnered delivery personnel, are essential for efficient last-mile delivery in quick commerce.
These partners enable companies to scale their delivery capabilities rapidly, ensuring that orders are delivered promptly and reliably, which is critical for maintaining customer satisfaction and loyalty.
Inventory management in quick commerce focuses on stocking high-demand items to minimize storage costs and maximize delivery efficiency. By optimizing inventory levels, companies can ensure that popular products are always available for rapid dispatch.
Strategic delivery planning involves allocating delivery personnel to specific routes and zones, ensuring that orders are delivered on time and efficiently. This approach helps reduce congestion and delays, allowing for smoother and more reliable delivery operations.
Technology integration is crucial as it continuously updates and optimizes logistics systems for faster and more reliable deliveries. By leveraging advanced technologies like AI and real-time tracking, companies can refine their operations to meet the high-speed delivery demands of quick commerce.
Mobile apps provide an intuitive platform for customers to place orders, track deliveries, and access personalized recommendations, enhancing user engagement and encouraging repeat business. These apps are designed to be user-friendly, offering features like real-time tracking and tailored offers to improve the shopping experience.
Websites serve as additional online channels for customers to access quick commerce services, offering the same functionalities as mobile apps but on a larger screen. This ensures that all customers can engage with the platform, regardless of their device preferences, and access services like ordering and tracking deliveries.
Quick commerce platforms form strategic partnerships with local retailers and brands to expand their product offerings and enhance their market reach. These collaborations allow companies to leverage existing infrastructure, such as local stores and grocery shops, to optimize supply chains and improve delivery efficiency, ultimately benefiting both businesses and consumers.
High operational costs in quick commerce include expenses associated with maintaining dark stores, hiring and managing delivery personnel, and investing in advanced logistics technology. These costs are significant due to the need for rapid delivery and the infrastructure required to support it.
Inventory management costs encompass expenses related to maintaining a curated inventory of high-demand items. This includes costs for storage, inventory tracking, and replenishment, all aimed at ensuring that popular products are always available for quick delivery.
Marketing expenses involve investments in promoting the platform and attracting new customers through various channels such as social media, advertising, and promotional offers. These efforts are crucial for building brand awareness and driving customer acquisition in a competitive market.
Quick commerce companies generate revenue through several key strategies, leveraging their unique business models to capitalize on consumer demand for convenience and speed.
Here's how some famous platforms implement these revenue streams,
Product markup involves selling products at a higher price than their cost, often due to the convenience and speed of delivery.
For example, Blinkit (formerly Grofers) and Zepto charge slightly higher prices for their products compared to traditional retail stores, leveraging their ultra-fast delivery capabilities to justify these markup prices.
Delivery fees are nominal charges levied on customers to offset the costs associated with last-mile delivery. Companies like Dunzo Daily charge a minimum delivery fee for their services, ensuring that they can maintain profitability while offering rapid delivery.
Subscription fees involve offering premium services or loyalty programs that provide benefits like free delivery or exclusive discounts.
For instance, some quick commerce platforms offer subscription plans that include free delivery or cashback rewards, enhancing customer retention and generating a steady revenue stream.
While not a primary revenue stream for most quick commerce companies, some platforms may generate revenue through targeted advertising. However, this is less common in the quick commerce space compared to other e-commerce models.
Platforms like Swiggy Instamart might consider integrating ads in the future, but currently, their focus is more on product sales and delivery fees.
Partnerships involve collaborations with local vendors or brands to expand product offerings and reduce procurement costs. Companies like Swiggy Instamart leverage their existing network and partnerships to offer a wide range of products, enhancing their market reach and profitability.
Blinkit is a pioneer in India's quick commerce sector, offering a wide range of products with delivery times of 10-20 minutes. It operates through a network of dark stores and has expanded its services to include electronics and food delivery. Blinkit's robust logistics network and strategic partnerships with local retailers have been key to its success.
Swiggy Instamart leverages Swiggy's established logistics network to deliver groceries and daily essentials within 15-30 minutes. By utilizing Swiggy's existing delivery infrastructure, Instamart provides a wide product range and focuses on convenience and speed, reshaping the grocery shopping experience.
Zepto is known for its ultra-fast delivery, promising groceries and essentials within 10 minutes. It operates in major urban centers using micro-warehouses and advanced technology, making it a leader in the quick commerce space with rapid expansion in urban areas.
BigBasket's BB Now service delivers groceries within 60 minutes, focusing on high-demand products. It uses strategically located dark stores to ensure efficient order fulfillment and offers a wide selection of quality products, providing a reliable delivery service.
Dunzo Daily offers a comprehensive quick commerce platform with services including groceries, food, and medicines. It operates in several major Indian cities and provides a subscription service for regular customers, offering a diverse range of products to meet various customer needs.
Quick commerce has revolutionized the on-demand delivery industry by offering ultra-fast delivery of everyday usage products, setting it apart from traditional e-commerce.
Let us have a look at how it differs and has established itself as a revolutionary force,
Q-commerce focuses on delivering products within 10-30 minutes, whereas traditional e-commerce typically takes days or weeks to deliver goods. This rapid delivery is made possible by strategically located dark stores and advanced logistics.
These platforms often focus on a curated selection of high-demand items like groceries, personal care products, and medicines, rather than offering a wide range of products like traditional e-commerce.
Q-commerce provides an on-demand service, allowing customers to order and receive products at their convenience, often 24/7. This convenience is particularly appealing in urban areas where time is highly valued.
Q-commerce caters to the growing demand for instant gratification and personalized experiences, leveraging technological advancements like AI and real-time data to optimize delivery processes.
Q-commerce seamlessly integrates with traditional businesses such as grocery stores and local shops, enhancing operational efficiency and creating a win-win situation for both businesses and consumers.
The rapid expansion of q-commerce has created significant employment opportunities, particularly in the gig economy, offering flexible earning opportunities for delivery personnel and micro-warehouse staff.
Q-commerce has opened new avenues for market expansion by allowing businesses to establish cloud-based stores in different cities or countries, enabling them to scale faster than traditional e-commerce models.
Overall, q-commerce has established itself as a revolutionary force in the delivery industry by providing unparalleled speed and convenience, leveraging advanced technology, and creating new opportunities for businesses and workers alike.
Quick commerce has redefined the retail landscape, offering unmatched speed and convenience that traditional e-commerce struggles to match. With ultra-fast deliveries and efficient logistics, q-commerce has created a new standard for customer satisfaction, pushing businesses to innovate and stay competitive.
As consumer demand for instant fulfillment of needs continues to grow, companies embracing q-commerce have a unique opportunity to drive growth and build brand loyalty.
If you're a business looking to tap into the fast-paced world of quick commerce, Fourchain, a leading mobile app development company, can help you get there!
We offer customized solutions to streamline your operations, optimize delivery networks, and position your brand for success in this evolving market.
Contact us today to explore how we can accelerate your journey into quick commerce and keep you ahead of the competition.
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