Quick Commerce in India
Quick commerce (Qcom) is witnessing significant growth in India, attracting startups, food delivery services, and major e-commerce players. Despite criticisms for bypassing traditional R&D innovation routes and posing threats to traditional retail, qcom has become an essential service due to its focus on speed.
Emerging Players in Quick Commerce
- Amazon: Recently launched its qcom service, Amazon Now, in select areas of Bengaluru. As a late entrant, it competes against established players like Blinkit, Swiggy's Instamart, and Zepto.
- Flipkart: Owned by Walmart, ventured into qcom with Flipkart Minutes about a year ago.
Amazon's Strategic Position
- Amazon has a strong delivery network, large warehouses, and substantial financial resources.
- Cloud service AWS and a deep market presence in India bolster its position.
- Capability to leverage brand power and offer compelling listings.
- Potential to cross-sell qcom offerings to existing customers rather than launching a standalone app.
Challenges and Opportunities
- Customer acquisition remains a challenge for new entrants like Amazon in the qcom sector.
- Building a robust supply network of dark stores is crucial for hyperlocal service delivery.
- Existing players need to safeguard their market position against large ecom platforms.
Market Insights
- The Qcom market is projected to grow from $300 million in FY2022 to $7.1 billion by FY2025.
- Over two-thirds of e-grocery orders are currently fulfilled by Qcom platforms.
The future of e-commerce may heavily tilt towards quick commerce, with major players like Amazon continuing to adapt and integrate qcom strategies to capture market share effectively.
