February 28, 2024
India quick e-commerce Market

India Quick E-Commerce Market Is Expected To Be Flourished By Growing Digital Payments Adoption

India’s quick e-commerce market enables customers to get items delivered within a few minutes to hours. The market includes ordering and delivering items like groceries, snacks, beverages, and other daily essentials through mobile applications. The market plays a key role in delivering items to customers at their doorsteps in the fastest possible time. With growing digital payments adoption in India, quick commerce has picked up pace in recent years. Companies offer services like cash-on-delivery, all major debit/credit cards, net banking, UPI, etc. for seamless transactions.

The global India Quick E-commerce Market was valued at US$ 652 million in 2023 and is expected to exhibit a CAGR of 63% over the forecast period 2023 – 2030, as highlighted in a new report published by CoherentMI.

Market Dynamics:

Growing digital payments adoption is one of the key drivers expected to flourish the India quick e-commerce market over the forecast period. India has emerged as one of the fastest growing digital payments markets in the world. With rising smartphone and internet penetration in the country, consumers are increasingly adopting digital payment methods like UPI, debit/credit cards, and net banking for online shopping. This has boosted the quick commerce market as it allows players to offer multiple payment options along with cash-on-delivery for order placement. Another driver fueling the market growth is increasing urbanization. The urban population in India is steadily rising with growing jobs in cities. Urban households have less time for grocery shopping and prefer quick deliveries, which is driving the quick commerce industry.

Segment Analysis:

The India quick e-commerce market is dominated by the grocery segment which holds around 60% share. Being one of the essential commodity needed for daily use, grocery sees high demand for quick delivery. The segment is growing as consumers prefer ordering groceries on apps for delivery within few hours rather than visiting physical stores.

PEST Analysis:

Political: The government allows 100% FDI in food retail and permits dark stores. This has encouraged investment in quick commerce.
Economic: Rising income levels and urbanization and changing lifestyles have increased demand for quick delivery of goods. The pandemic further accelerated digital adoption.
Social: Young working population and nuclear families prefer on-demand delivery over traditional shopping methods due to lack of time.
Technological: Technology enables apps to provide delivery within 10-20 minutes by establishing geographically distributed dark stores for hyperlocal fulfillment. Advanced logistics helps in efficient order sorting, packing and routing.

Key Takeaways:

The India Quick E-Commerce Market Size was estimated at US$ 652 million in 2023 and is expected to witness strong growth till 2030 backed by growing customer demand for instant deliveries. The global India Quick E-commerce Market is estimated to be valued at US$ 652 million in 2023 and is expected to exhibit a CAGR of 63% over the forecast period 2023 – 2030.

The western region leads in India’s quick commerce market with Maharashtra and Gujarat being the top states accounting for over 30% share due to high smartphone penetration and tech-savvy population.

Key players operating in the India quick e-commerce market are Blinkit, Swiggy Instamart, Zepto, Dunzo, BigBasket, Amazon Quick Commerce, Tata Neu Super App, JioMart, Flipkart Quick and Grofers. Blinkit is the leading player with over 20% market share owing to extensive fulfillment network across major cities. Other major providers are Swiggy Instamart and Zepto who have expanded pan-India presence in the recent past.

FAQ’s:

Q.1 What are the main factors influencing the India Quick E-Commerce Market ?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?

*Note:
1. Source: CoherentMI, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it