Quick Commerce in India: The Billion-Dollar Opportunity You Didn't See Coming

How a blend of dense cities, cheap labor, and entrepreneurial grit is turning quick commerce into India's hottest business model.

The Zomato-Blinkit Deal: A Wake-Up Call for Aspiring Entrepreneurs

Imagine this: Deepinder Goyal, the founder of Zomato, confidently calls Blinkit’s acquisition “one of India’s best internet acquisitions.” Bold claim? Sure. But when you dig into the numbers, it starts to make sense. Blinkit, valued at ₹95,000 crores, is knocking on Zomato’s ₹2.2 lakh crore valuation with the speed of, well, a 10-minute delivery.

Quick commerce wasn’t even a thing in India until FY21, when the gross merchandise value (GMV) was a modest $300 million. Fast forward to today, and it’s already hit $3 billion, with projections of $40 billion by 2030.

Now here’s the kicker: While similar models in the US and Europe (think GoPuff and Getir) are floundering, India is thriving. Why? That’s the billion-dollar question. Let’s break it down.

Why Quick Commerce Works in India (But Not in the West)

Quick commerce is thriving in India for three specific reasons, and they’re as uniquely Indian as chai and samosas.

1. High-Density Urban Clusters

Think of Bangalore, where 11,000 people cram into a single square kilometer. Or Mumbai, with an eye-popping 20,000 people per square kilometer. Urban India is a collection of micro-markets where quick deliveries make logistical and financial sense.

Compare that to suburban America, where sprawling neighborhoods and car-dependent lifestyles make 10-minute deliveries a logistical nightmare. Imagine delivering a bag of chips to someone 15 miles away—it’s a losing game.

Takeaway: If you’re an entrepreneur, focus on densely populated areas. Quick commerce thrives where people are packed like sardines.

2. The Income Disparity Dance

In India, it’s not unusual to find a billionaire’s mansion sharing a wall with a slum. This juxtaposition fuels quick commerce. The affluent are happy to pay for convenience, while the economically disadvantaged fill the demand for low-cost labor.

Consider this: In India, delivery fees are often waived for orders above ₹49 or cost a meager ₹30-₹50. Contrast that with the West, where delivery charges can hit $10-$15 per order.

Takeaway: Understand your market’s economic structure. India’s willingness to pay for convenience, paired with affordable labor, is a recipe for quick commerce success.

3. Labor Costs and Accessibility

India’s labor market is vast and affordable. Delivery executives in India can earn ₹16,000–₹20,000 per month for full-time work, significantly lower than their Western counterparts. Additionally, the diversity of delivery methods—bicycles, electric scooters, motorcycles—keeps costs flexible and manageable.

Takeaway: If you’re starting a quick commerce venture, leverage India’s labor ecosystem. Affordable, reliable manpower is the backbone of this business model.

Inside the Quick Commerce Engine: Dark Stores and Mother Warehouses

Quick commerce runs on two critical components: dark stores and mother warehouses. Let’s unpack their roles and economics.

Dark Stores: The Local Supermarket You Never See

A dark store is essentially a hyper-efficient warehouse located within a 3-kilometer radius of customers. Here’s the math behind setting one up:

• Initial Investment: ₹90 lakhs (₹70 lakhs for setup + ₹20 lakhs for rent deposit)
• Inventory: ₹30 lakhs worth of goods, replenished daily or weekly.

Dark stores operate 24/7 with three shifts of eight workers each. Each worker picks items from shelves and packs them for delivery. These stores can fulfill 1,400 orders daily, with operational costs averaging ₹22 per order.

Takeaway: Want to start your own quick commerce franchise? Dark stores are the lifeblood of this model. With a manageable initial investment, they can become cash-flow-positive quickly.

Mother Warehouses: The Central Hubs

For every 40 dark stores, there’s one mother warehouse. These massive facilities, often located on city outskirts, stock less-frequently ordered items. They serve as the backbone for inventory replenishment and help expand the product range. Think high-value items like electronics or bulk grocery packs.

Takeaway: The hub-and-spoke model isn’t just for logistics giants like Amazon. Quick commerce relies on this too. Entrepreneurs should consider how centralized inventory can drive efficiency.

The Delivery Partner: India’s Everyday Hero

Whether it’s sweltering heat or torrential rain, delivery executives are the unsung heroes of quick commerce. On average, they complete 20 deliveries a day, covering 100 kilometers. Here’s their financial breakdown:

• Earnings: ₹60 per order (~₹16,000–₹20,000 per month).
• Costs: Fuel, maintenance (~₹3,000 per month).
• Net Earnings: ₹4,000–₹7,000 per week, plus tips and incentives.

For many, these jobs are a matter of pride. Their brightly colored uniforms—whether Blinkit’s orange or Zepto’s purple—are badges of honor in their communities.

Takeaway: Delivery partners are the face of your quick commerce brand. Treat them with respect and fairness—they are your most visible ambassadors.

Profitability: From Red to Black

Critics love to declare quick commerce a loss-making venture, but the numbers tell a different story. Blinkit, for instance, slashed its losses from ₹326 crores in FY23 to just ₹3 crores in Q1 FY25. Zepto’s founders are similarly bullish, expecting company-level break-even within 36 months.

How are they pulling it off?

1. Platform Fees and Ads: Revenue from platform fees and advertising is growing steadily.
2. Category Expansion: From groceries to gadgets, quick commerce now covers it all.
3. Loyalty Programs: Subscriptions like Zepto Pass drive repeat orders and customer retention.

Takeaway: Revenue diversification—through ads, fees, and subscriptions—is key to turning quick commerce profitable. If you’re in this game, think beyond just deliveries.

Opportunities for Aspiring Entrepreneurs

If quick commerce excites you, here are five ways to get involved:

1. Start a Dark Store Franchise: With ₹90 lakhs, you can partner with Blinkit, Zepto, or Swiggy to open your own dark store.
2. Build a Labor Supply Business: Source and train delivery partners for quick commerce companies, focusing on attrition management.
3. Create a Quick Commerce Native Brand: Develop impulse-buy products like ice cream tubs or single-serve meals tailored for quick commerce platforms.
4. Fashion on Demand: Launch a 4-hour delivery service for fashion items, targeting urgent use cases like last-minute wedding attire.
5. Quick Commerce for Food: Solve logistical challenges to deliver fresh, healthy food within 15 minutes. Think beyond traditional menus.

The Future of Quick Commerce

Quick commerce isn’t just a fleeting trend—it’s reshaping consumer habits in India. From category expansion to private labels, the possibilities are endless. For aspiring entrepreneurs, it’s not just about riding the wave but about shaping it.

If you’re ready to dive into the world of quick commerce and build something game-changing, I’ve got just the thing for you.

Here’s to transforming the way India shops, one delivery at a time.

Siddharth Rajsekar

P.S. Quick commerce is just the beginning. The future belongs to those who innovate relentlessly.