Quick Commerce: A buzzword

In the past two years whenever there has been a Festive season, we all might have heard about Quick Commerce either in newspapers, articles, or in various advertisement. But have you ever thought-

1. Why do we hear a lot about them nowadays?

2. What do they do? ,

3. How do they function?

Let's dive into this topic and understand all the important points

Why do we hear or read a lot about them nowadays?

Quick commerce is one of those industries that has recently emerged. It was a subset industry of e-commerce that has now taken the status of a separate Individual industry due to its increased scope and operations, creating new opportunities for entrepreneurs to start a new venture.

A few Examples are big companies like Blinkit, Zepto, etc.

What do they do?

As we all know when we order from any E-commerce platform (Amazon, Flipkart) any type of commodity be it perishable, non-perishable, Electric, or any other it used to take almost few days for them to be delivered which was leading to customer dissatisfaction due to long wait. In this competitive world where everyone is busy competing with each other, trying their best to be time efficient and utilize it properly everyone falls short of time and needs everything to be fast and quick.  But as years passed one of the ideas to overcome this challenge was that they have to increase the speed of delivery to satisfy customers. So the idea of Quick Commerce.

It is a heavy investment business idea which has the objective of delivering the ordered products within few minutes or Hours. Blinkit is one of those companies that delivers the grocery or any other items within a few minutes.

How do they function?

As said Quick Commerce is a delivery platform so to maintain inventory they have dark stores located every Few miles to provide their services in that area and to meet the delivery targets (like 10mins). Their Cost of holding inventory is less as they have a huge Inventory and to acquire as well as distribute them there is a supply chain management is in place. They even use technology and logistics which is the main part of their Business and they create apps for customers to place their orders.

How does the future of this industry look?

Many experts believe that this industry will grow very rapidly as there is a growing demands for fast deliver systems in many tier 1 cities, few companies are also started their operations in tier 2 & 3 cities and towns for future growth in those areas.

In present, the quick commerce industry in India is valued at US\$3.34 billion in 2024, and is expected to grow to US\$9.95 billion by 2029. This represents a compound annual growth rate (CAGR) of more than 4.5% over the forecast period.

Conclusion

In this article, we have discussed completely about Quick Commerce, 'What do they do?' 'How?' And we come to a conclusion that Quick commerce is one of those industry which will see huge growth in the future due to its growing popularity and Customer adaptability.

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Disclaimer:

ED cell serves as a student-led community focused solely on educational purposes. We do not intend to hurt emotions of any kind. The articles are not intended to hurt any political or religious sentiments. The articles are based on various sources and opinions and the secondary data available. We give credit to all the sources that have been used in the information provided in the above article.