Strong case of Kirana Store in quick commerce boom

The rise of quick commerce has also led to calls for regulatory scrutiny. The All India Consumer Products Distributors Federation (AICPDF), representing 400,000 retail distributors, has requested an antitrust investigation into companies like Blinkit, Swiggy, and Zepto for alleged predatory pricing practices that disadvantage traditional retailers.

As the quick commerce sector continues to expand, it is reshaping India’s retail landscape, offering consumers unprecedented convenience while challenging the survival of small, traditional retailers.

In Mumbai’s suburbs, workers at Swiggy’s grocery warehouse race against time to deliver orders within 10 minutes, reflecting a growing trend in India’s quick commerce sector. This model, adopted by companies like Zepto and Zomato’s Blinkit, is reshaping consumer habits by prioritizing speed and convenience.

The quick commerce market, currently valued at $5 billion, is expected to dominate up to 70% of India’s online grocery sector by 2030, which is projected to grow to $60 billion. However, this rapid expansion poses challenges for traditional small retailers, who are experiencing significant declines in monthly sales. Some are attempting to adapt by incorporating technology to compete.

Despite high revenues, platforms like Swiggy’s Instamart and Blinkit remain unprofitable, relying heavily on promotions and urban customers. To improve margins, these companies are diversifying into higher-margin items such as electronics and fitness products.