Scaling up fast: Quick commerce is here to stay

FMCG brands are now embracing quick deliveries as customer preferences change

- UMA KANNAN

A few years ago, when the concept of quick commerce, a business model where goods are delivered within 10 minutes to 1 hour, started gaining traction, venture capitalists and even a few start-up founders raised questions on the model and wondered whether it is scalable, and do customers really require 10 minutes delivery. But in 2024, all major e-commerce companies are betting big on quick commerce as customers' preferences have changed over years.

Not just groceries, major q-commerce players such as Blinkit and Zepto have extended their services in many categories and have introduced new features. From LEGO sets to sports, gym equipment, yoga needs and travel bags, Zomato-backed Blinkit delivers everything in 10 minutes. Now, Amazon India mulls foraying into the quick commerce space early next year with Tez.

Swiggy shares got listed on the exchanges on November 13 at around ₹420. Swiggy said in its draft offer documents filed with SEBI that the assortment of non-grocery items available on Instamart has been growing.

The category contribution to the assortment has increased from 18.20% in FY22 to 25.28% in June quarter of this year. This shows non-grocery items' growth and popularity among users.

Also, for FMCG companies, q-commerce emerges as a fastest-growing channel. Nestle India recently said that q-commerce is 50% of its e-commerce business and that it is the fastest channel of growth. Tata Consumer saw its festive sales increase through q-commerce.