Welcome to India, where life gets a whole lot easier with the magic of online shopping! Quick commerce is shaking things up in the e-commerce world here, offering incredibly speedy delivery—yes, typically between just 10 to 30 minutes—for all your favourite items like groceries and personal care products. This sector is set for some exciting growth, with estimates suggesting that India's quick commerce market could hit an impressive USD 5 billion by 2025 and reach nearly USD 9.94 billion by 2029! This boom is being driven by changing consumer habits, a big rise in e-commerce use, and the ever-growing demand for convenience, especially among millennials and Gen Z. Zepto CEO Aadit Palicha Announces Launch of Dedicated Zepto Cafe App.

Breaking Down The Data

According to a report from the Economic Times, the average order value (AOV) has seen a nice increase—from INR 250 to INR 500. Boosting this AOV is a key focus for those in the quick commerce game, which means they’re looking to offer more premium product categories. By the end of June 2024, Zomato’s Blinkit app was leading the pack with an AOV of INR 625. Plus, they’ve teamed up with Apple Premium Reseller Unicorn Infosolutions to bring the iPhone 16 series (16 and 16 Plus) to their platform, complete with discounts and easy payment options for select credit cards!

When it comes to navigating the quick commerce market in India, the competition is heating up! Major players include Zepto, Zomato’s Blinkit, and Swiggy’s Instamart, with Zepto grabbing the lead in app downloads—boasting nearly 11 million across Google Play and the Apple App Store. Swiggy’s app, which includes Instamart, followed closely with 9.8 million downloads, while Blinkit had around 6.6 million. There’s also Tata’s BigBasket, which features the BB Now function in its main app, coming in with about 3.5 million downloads, and Dunzo, which attracted under a million.

As for market shares, Blinkit is currently in the lead with 45%, followed by Instamart at 27%, Zepto at 21%, and BB Now at 7%. The quick commerce trend took off during the pandemic, as many consumers started making the switch from their local Kirana (neighbourhood) stores to online platforms. Since then, quick commerce companies have been busy investing in dark stores, expanding their product selections, and enhancing their delivery systems to meet the growing demand. For instance, according to Business Today, Zepto operates between 200 to 250 dark stores in major cities like Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Pune, and Chennai.

Definition Of Dark Stores

So, what exactly are dark stores? Think of them as special retail hubs or warehouses dedicated solely to handling online orders. Unlike traditional shops, dark stores don’t welcome the public. They act as behind-the-scenes distribution centres where inventory is kept, products are packed, and orders are sent out. Also known as stark shops, dark supermarkets, dotcom centres, or ghost stores, these facilities play a crucial role in speeding up e-commerce logistics.

Dark stores usually operate around the clock and utilize the latest technologies like GPS and data analytics to optimize delivery routes, ensuring you get your goodies as quickly as possible. Happy shopping! They are strategically situated in city centres to target micro-markets within urban areas, often resulting in higher rental costs than traditional warehouses. In India, rental rates for dark stores can vary widely across cities, ranging from INR 40 to INR 250 per square foot, depending on the location. Popular quick-commerce platforms like Swiggy Instamart, Blinkit, and Zepto together operate around 1,200 dark stores in major cities across India, underscoring their growing significance in the online shopping ecosystem.

(The above story first appeared on LatestLY on Jan 03, 2025 02:35 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).