Quick-commerce in India initially emerged as a solution for the rapid delivery of groceries, addressing the growing consumer demand for convenience and immediacy. Platforms like Blinkit, Zepto, and Swiggy Instamart revolutionised urban shopping by ensuring essential household items reached customers’ doorsteps within minutes.
However, what began as a grocery-centric model quickly expanded beyond perishables, as companies recognised the potential of this format in other categories. Today, quick-commerce platforms offer a diverse range of products, including cosmetics, jewellery, home appliances, apparel, and household essentials.
According to Redseer, the quick-commerce market is projected to grow at an impressive 40-45% Compound Annual Growth Rate (CAGR) in Gross Merchandise Value (GMV) over the next three years.
Recognising the growth and consumer shift towards instant gratification, traditional e-commerce giants have also entered the quick-commerce space. Flipkart has introduced “Flipkart Minutes,” while Amazon is reportedly working on its rapid delivery service, “Tez.” This expansion underscores the increasing significance of quick-commerce in India’s retail landscape, as both established and emerging players compete to capture market share.
However, a question still persists: Will quick-commerce soon replace e-commerce? At AdTech 2025, a session on whether quick-commerce will replace e-commerce featured a panel of industry experts such as Anuja Mishra, EVP and CMO, Honasa Consumer; Bhaskar Ramesh, Director – Omnichannel, Google; Chandan Mukherji, Director and Executive VP – Strategy and Marketing, Nestlé and Vidya Kailasam Hangal, Director – Omnichannel, Mondelēz International that discussed evolving ‘commerce’ space and how brands are strategizing to make the best of it.
The session was chaired by Deepender Rana, Executive Managing Director, Insights, South Asia and APAC, Kantar. Rana opened the session by stating how quick-commerce is growing at an explosive rate. But will it replace e-commerce, complement it, or evolve into an entirely new model?”
Sharing data from Kantar’s IQ survey, he said that online commerce penetration grew by 8% in 2024. Quick-commerce, however, saw a 200% growth, meaning one in five online buyers is now also a quick-commerce buyer, and for many brands, quick-commerce already accounts for 30-50% of their total e-commerce business.
Hangal said that for a category like snacking, quick-commerce is a game changer. She also highlighted how quick-commerce has created new consumption occasions, such as late-night snacking and post-dinner dessert cravings. “Traditional e-commerce, with its delayed delivery, doesn’t align with impulse purchases. If I crave dessert after lunch, I want it now—I won’t wait till tomorrow,” she added.
Ramesh pointed out that India’s top 10% of households are willing to pay a premium for convenience, and that quick-commerce is expanding beyond groceries into stationery, kitchen essentials, and even non-FMCG categories. “Quick-commerce is changing consumer behaviour by taking the cognitive load off shoppers. Instead of maintaining a shopping list, consumers buy what they need at the moment,” he said.
With the rise of quick-commerce, brand differentiation has become a crucial factor in determining success. Mishra highlighted how certain product categories are already seeing strong demand on quick-commerce platforms.
“Quick-commerce is still in its early years, but we’re already seeing some categories over-index. For instance, baby care products—you run out of diapers, and you need them immediately. Dry shampoo is another surprising category that sells significantly more on quick-commerce than traditional e-commerce,” she noted.
For brands, this means rethinking their strategies to cater to the urgency-driven nature of quick-commerce purchases.
The role of technology and AI
Technology is at the core of quick-commerce, enabling lightning-fast deliveries and seamless operations. Mukherji underscored the importance of technological advancements in streamlining supply chains. “Technology is critical in making quick-commerce efficient. In dark stores, the time from receiving an order to dispatch is often less than a minute,” he stated.
He also emphasised how agility in the supply chain plays a decisive role, particularly during high-demand periods such as festivals or Valentine’s Day, when stock availability can make or break sales.
Despite its rapid growth, the profitability of quick-commerce remains a pressing question. Investors continue to pour funds into the sector, but achieving sustainable financial success is a challenge that mirrors the broader e-commerce industry.
“Investment in quick-commerce continues because investors believe in its potential,” said Ramesh. He also believes that the battle is to achieve profitability while scaling. E-commerce itself is still not fully profitable, and quick-commerce will face similar hurdles.
