While the idea of 10-minute delivery was popularised by Blinkit, erstwhile known as Grofers, there are many players in the game now like Swiggy which runs Instamart, then there is Zepto, Tata Group-owned Bigbasket. With Reliance-owned Jiomart and Amazon expected to enter the game, it will be a different ball game, altogether
Ecommerce is a passe now, welcome to the world of quick commerce (Q-commerce) and no wonder if the concept of next day delivery, hours-long, even the same-day delivery become non-appealing in the year to come. A 10–15-minute delivery time is becoming a new benchmark. The last time we heard anything faster was a two-minute noodle.
In an age where instant gratification is taking roots at a faster clip, quick commerce is here to stay and the companies are realising the need of upping their game to remain relevant. Billions of rupees are being pumped into this business by companies to deliver on the promise of sub 10-minute delivery.
While the idea of 10-minute delivery was popularised by Blinkit, earlier known as Grofers, it came across as an advertising gimmick initially as reports appeared that deliveries were taking longer than claimed by the company. This was the situation two years ago.
Blinkit, which is owned by Zomato, has not only improved its services but also expanded its network.
There are many players in the game now such as Swiggy which runs Instamart, Zepto, Tata Group-owned Bigbasket and the latest service being offered by Flipkart in select pin codes in Delhi, Mumbai and Bengaluru through ‘Flipkart Minutes’.
In all likelihood, Amazon and Reliance-owned Jiomart are expected to enter the game; and this will be a different ball-game, altogether.
The Q-commerce business was earlier thought of as a phenomenon that could succeed in metros. But we are now witnessing it gaining popularity in tier-2 and tier-3 cities too.
The total addressable market (TAM) is much bigger in India from what it was conceived earlier.
Zomato acquired Blinkit in 2022 at USD 568 million. Now the company is being valued at over USD 15 billion and its valuation has surpassed even the formers’ mainstay food delivery business. With the valuation of Blinkit and Zomato stands close to USD 27 billion, UBS in a recent note has valued it at a 15 per cent premium over the current valuation at USD 32 billion. According to media reports, the Deepinder Goyal-founded Zomato has invested around Rs 2,300 crore in its grocery delivery arm.
This food delivery app has done a massive turnaround of Blinkit and the latter now has closed to 2000 dark stores and the largest market share in this segment of ecommerce at nearly 40-45 per cent. Meanwhile, Swiggy’s Instamart has a market share of 20-25 per cent followed by 15-20 per cent share of Nexus Venture Partners-backed Zepto and and Big Basket’s BB Now at 10-15 per cent.
With as deep pockets, Flipkart has entered into the picture offering products at lower prices as part of its business strategy.
Realising the growing competition from the incumbents Blinkit and Swiggy, BigBasket joining the bandwagon does not come as a surprise. With the backing by the Tata’s, the company has a wherewithal to dive deep into the business. The company is known more for its slotted deliveries. is now shifting to an entirely Q-commerce-driven business model.
The players with the focus on time slots based delivery business model have been losing market share to their quick commerce counterparts because of the growing need of consumers for a speedy delivery.
The management of Bigbasket has indicated that the company will be moving away from 2-hour model to offer only 10-30 minutes delivery services along with next day delivery services. BB Now which accounts for nearly half of company’s sales is planning to increase its dark store count by 35-40 per cent while retaining its network of large warehouses.
Reports point out that Flipkart Minute’s has a wider pool of products on offer and are not limited to groceries. It will deliver products from electronics to other essentials. While it currently has fewer pin codes, its presence is expected to go up.
The TAM is huge and we are just scratching the surface. There is enough opportunity to grow but the player who will have the scale is expected to last the race because it would incur a big operating cost and require a big network.
As and when Jiomart decided to launch its own version of Q-commerce service, it could be a big disruption like what it did with its mobile services. Reliance has created an ecosystem that could neutralise its late mover disadvantage. It has the largest telecom subscriber base and has an ever growing retail business which is an omnichannel system.
Amazon is another big fish in the pond with its own ecommerce platform so it has a network already ready to capitalise.
Zepto recently secured a follow-on financing of USD 340 million led by US-based venture capital firm General Catalyst, taking its valuation to USD 5 billion. This comes soon after a pre-IPO funding round of USD 665 million. The latest funding round comprised new investors like Dragon Fund and Epiq Capital joined the round while existing investors StepStone, Lightspeed, DST and Contrary increased their stakes.
Soon, the segment will witness efficiency in the supply chain, innovation in business, competition in prices, adoption of newer technologies, besides expansion of the market itself.
