SUMMARY

Quick commerce has greatly disrupted conventional ecommerce standards, altering both consumer expectations and business models.

In metropolitan areas where speed is often equated with value, quick commerce is experiencing an impressive CAGR of 24%.

Around 60% of consumers, particularly in urban India, now anticipate same-day deliveries, while 30% prefer delivery within two hours.

A few years back, the notion of receiving grocery deliveries in just 20 minutes appeared to be an ambitious goal—a logistical challenge that seemed next to impossible. Today, however, it has become such a common expectation that slower services are viewed as disappointing. Quick commerce in India has witnessed remarkable growth, with Blinkit reporting a staggering 130% year-on-year increase and Swiggy’s Instamart quickly outpacing its food delivery sector.

The food delivery sector is also undergoing a rapid transformation, as evidenced by Ola Consumer testing 10-minute deliveries in Bengaluru via ONDC and magicpin introducing “magicNOW” for 15-minute food deliveries across six cities. Furthermore, Myntra has launched “M-Now,” which promises 30-minute fashion deliveries, showcasing how quick commerce is branching out beyond essential items into discretionary markets.

Critical Questions Arising from Speed

This pursuit of speed raises vital questions: What is the sustainability of this business model? How can profitability be assured? More importantly, how can brands ensure customer satisfaction without overloading their supply chains?

The Evolution of Ecommerce

Quick commerce has thoroughly reshaped established ecommerce practices, redefining what consumers expect and how businesses operate. When Amazon first emerged, rapid delivery was a cornerstone of its strategy, along with its extensive range of products. They acknowledged that consumers consistently value both speed and convenience. Today, shopping habits have intensified, with instant gratification heavily influencing consumer behaviour and expectations.

The progression of ecommerce illustrates that early pioneers do not always maintain dominance. Although Flipkart initiated the groundwork, Amazon’s entry in 2013 marked a shift, demonstrating how a newcomer could swiftly win over consumers. Meesho made its debut in 2015 and rapidly gained traction, showing that adaptability and innovation can outdo the initial advantages of first movers. Likewise, in the realm of quick commerce, the next major disruptor might still be on the horizon.

The Changing Pace of Indian Ecommerce

In urban locations where speed is closely linked to value, quick commerce is rapidly expanding, with a CAGR of 24%. It is projected to secure a significant share of India’s $100 billion ecommerce industry by 2029. Approximately 60% of consumers, particularly in urban regions of India, expect same-day delivery, whereas 30% opt for services under two hours, especially for essential items like groceries and medications.

This demand for speed is fundamentally changing how businesses consider customer loyalty and operational efficiency. Missing delivery deadlines can triple the likelihood of product returns, adversely affecting both consumer trust and operational expenses.

At the same time, customers tend to prefer marketplaces over direct-to-consumer (D2C) sites due to their superior return processes and perceived dependability. This highlights the necessity for D2C brands to not only provide faster deliveries but also ensure smooth post-purchase experiences to bridge this gap.

The Engines Behind Rapid Fulfillment

Efficient ultra-fast deliveries require optimisation at all operational points. Advanced logistics technology forms the backbone of these services. Tools such as automated carrier selection, real-time tracking, and non-delivery report management enhance workflows, facilitating quicker and more precise deliveries while minimising manual interventions.

Successfully achieving this demands a mission-oriented approach to ultra-fast deliveries, where each step—from pickup to managing service-level agreement breaches and selecting delivery partners—is meticulously optimised.

Furthermore, consistent communication through emails, SMS, and WhatsApp keeps customers updated, reducing the need for inquiries and fostering trust. The strategic positioning of dark stores and micro-warehouses near high-demand areas is also revolutionising fulfillment methods.

These hubs now manage up to 40% of quick commerce orders, ensuring that inventory is readily accessible. AI-driven route optimisation is also making significant advancements, reducing delivery times by 20% and streamlining operations.

Globally, innovations such as drones and autonomous vehicles are setting remarkable standards, and while India has not yet reached that level, the momentum is undeniable. The technology is indeed captivating, but what is even more thrilling is its potential to entirely redefine logistics.

This is where logistics facilitators enter the scene, merging technological innovation with accessibility. By staying ahead of trends, they empower ecommerce businesses of all sizes to launch and scale at their convenience.

Just as ecommerce platforms have provided opportunities for smaller brands to flourish, logistics platforms are currently creating an equitable landscape, allowing even lesser-known companies to offer swift deliveries. This democratization of resources paves the way for innovation and differentiation, aiding brands in maintaining a competitive edge in a rapidly evolving marketplace.

Do Consumers Always Want Speed?

While urban consumers often associate speed with efficiency, the situation is different in tier-2 and tier-3 cities. In these regions, cost-effectiveness and reliability tend to take precedence. Essential items like groceries and medicines remain the dominant categories in quick commerce, accounting for nearly half of all transactions.

However, for categories such as electronics and fashion, many customers value a seamless after-sales experience more than rapid delivery. The critical factor is finding a balance—recognising that not every consumer seeks the same thing and customising experiences to meet diverse needs.

Tailoring delivery networks and collaborating with efficient carriers and logistics platforms enables brands to differentiate themselves and cater to varying customer expectations.

Navigating the Roadblocks to Efficiency

Operating an ultra-fast delivery network is a formidable challenge. The high operational costs and complexities associated with last-mile delivery exert significant pressure on profitability.

Additionally, the environmental impact of rapid expansion must not be overlooked. Nonetheless, these obstacles also present opportunities for those willing to innovate.

For example, embracing electric vehicles and sustainable or eco-friendly packaging can handle sustainability concerns while enhancing operational efficiency. Additionally, minimising returns by addressing key issues such as incorrect sizing in fashion items, estimating delivery dates accurately, providing live tracking information, and ensuring timely communication proves effective in retaining customers and reducing losses.

Incorporating these innovations and customized offerings is essential for tapping into new growth markets and securing ongoing success across various customer segments.

Where Do We Go from Here?

Ultra-fast deliveries represent more than a mere convenience; they serve as a measure of the agility and resilience of Indian ecommerce. As speed becomes the standard expectation, the focus must transition towards building sustainable, efficient, and customer-focused supply chains. The true victors will not simply be those who guarantee the swiftest delivery but those who consistently add value through innovation, operational excellence, and a committed focus on outstanding customer experiences. Speed cannot come at the cost of reliability.

The pressing question now is not how swiftly one can deliver but rather how intelligently brands can adapt to meet the constantly evolving demands of this dynamic market. This future appears ripe with opportunities for those willing to think beyond conventional boundaries.