India’s quick commerce landscape is witnessing a transformative shift as e-commerce giant Amazon joins the race with its “Amazon Now” service in Bengaluru. This strategic move marks a significant evolution in the sector, which is projected to grow from $21 billion to $31 billion by fiscal 2027, representing 2.4% of India’s retail market.
The timing of Amazon’s entry is particularly intriguing. While relatively late to the game, Amazon’s focus on beauty, home, and kitchen categories signals a deliberate strategy to differentiate itself in a market currently dominated by grocery and essentials. This expansion into high-margin categories could potentially reshape consumer expectations of quick commerce services.
The competitive landscape is intensifying rapidly. Flipkart’s aggressive expansion of its Minutes service, targeting 500-550 dark stores by its Big Billion Days sale, demonstrates the growing stakes. The inclusion of high-value categories like electronics and smartphones, along with medicine delivery partnerships, indicates a broader trend of quick commerce platforms evolving beyond their initial grocery-focused model.
Market dynamics reveal interesting patterns. Blinkit leads with a 41% market share, followed by Swiggy Instamart at 23%. The race for dark store expansion is particularly telling – Blinkit and Zepto have already surpassed their targets of 1,000 and 900 stores respectively, while Swiggy operates over 800 dark stores. These numbers reflect the industry’s belief in physical infrastructure as a key competitive advantage.
Looking ahead to 2025, the sector is poised for significant transformation. The expansion into tier-2 and smaller cities represents a crucial pivot point, potentially unlocking a vast new consumer base. With the top 40-50 cities constituting a $250 billion grocery market, the opportunity for quick commerce is substantial.
A particularly noteworthy trend is the rising prominence of D2C brands on quick commerce platforms, with platforms now allocating over 30% of their brand mix to D2C and new-age products. This shift indicates a growing symbiotic relationship between quick commerce platforms and emerging brands, creating new growth avenues for both parties.
However, profitability remains a concern. JPMorgan’s assessment of the industry being in “land grab mode” highlights the current prioritization of market share over margins. Companies are investing heavily in store rentals, product discounts, and loyalty programs, suggesting that the path to profitability might be longer than initially anticipated.
The industry’s projected 75% year-on-year growth rate, significantly outpacing traditional retail’s low-teens growth, underscores the transformative potential of quick commerce. The ability to hyper-localize services within a 3-kilometer radius, combined with competitive pricing and wide selection, positions quick commerce as a potentially disruptive force in India’s retail ecosystem.
As the battle intensifies, success will likely hinge on three key factors: operational efficiency in managing dark store networks, strategic category expansion beyond groceries, and the ability to maintain customer loyalty while gradually improving unit economics. The entry of established players like Amazon and Flipkart adds another layer of complexity to this evolving landscape, potentially accelerating the sector’s maturation and innovation pace.
