Is the age of traditional retail coming to an end? With just a tap on a smartphone, groceries, beauty products, and even high-value essentials arrive at your doorstep in minutes. Quick commerce (Q-commerce) is no longer just about last-minute milk and eggs—it’s redefining how India shops.
But as ultra-fast delivery services surge ahead, what happens to brick-and-mortar stores? Can traditional retail survive in an era where consumers prioritize speed over experience? Or is there room for a hybrid shopping model that balances instant convenience with in-store reliability?
This blog explores the rapid rise of Q-commerce, its impact on retailers, the sustainability of its hyper-fast model, and what the future holds for India’s retail landscape. Who will thrive, who will struggle, and what strategies can businesses adopt to stay relevant? Let’s dive in.
Shopping in India has changed dramatically what once meant visits to the store for grocery or beauty products now takes just a tap on a smartphone, thanks to the rapid rise of quick commerce (Q-commerce). It has significantly disrupted India’s retail landscape, particularly in urban centers.
A PwC report reveals that 52% of physical store retailers have experienced losses in food, beverage, and confectionery sales due to the rise of instant delivery services. Similarly, personal care (47%) and household cleaning (33%) products have seen sales decline, illustrating how Q-commerce is reshaping consumer shopping habits. Avenue Supermarts Ltd. (Dmart) experienced its biggest stock drop in over five years, a development that is also attributed to Q-commerce gaining momentum.
What started as a platform for “add-on” purchases like milk and eggs is evolving into a service for stock-up purchases, including higher-value staples. Blinkit reports that its retail partners break even at Rs 700,000 rupees (US$ 8,300) in daily gross order value, with store averages nearing Rs 1 million per day. Established retailers failed to anticipate the scale of this transformation, major brands like Adidas and Decathlon are also joining the space, further increasing per-order value.
The rapid expansion of the quick commerce market is not merely a psychological shift but also a result of increased venture capital investments, which have intensified competition among platforms. With increased funding, Q-commerce companies have aggressively scaled their operations, optimized delivery networks, and implemented competitive pricing strategies to dominate the market. Recognizing this shift, Reliance Chairman Mukesh Ambani has re-entered the space with a pilot for under-30-minute grocery delivery, despite having previously shut down a similar service.
As per the Chryseum report, India’s quick commerce sector has witnessed remarkable expansion, with sales surging over 280% in just two years. The industry’s Gross Merchandise Value (GMV) jumped from US$ 500 million in FY 2021-22 to US$ 3.34 billion in FY 2023-24, growing at an annual rate of 73%! Projections indicate it will reach US$ 9.95 billion by 2029, with a CAGR exceeding 4.5%.
This rapid growth is driven by the increasing demand for instant delivery, as modern consumers increasingly prioritize convenience and speed. Digital platforms have transformed shopping expectations, making ultra-fast delivery a necessity, particularly in urban areas where consumers are accustomed to an “instant demand” culture. To meet this expectation, Q-commerce platforms promise delivery times as short as 10 to 30 minutes, catering to consumers who prefer efficiency over traditional in-store shopping.
The quick commerce industry’s Gross Merchandise Value (GMV) jumped from US$ 500 million in FY 2021-22 to US$ 3.34 billion in FY 2023-24, growing at an annual rate of 73%!
Technological advancements play a crucial role in supporting this model. AI, machine learning, and IoT help optimize delivery routes, predict demand, and manage inventory in real time, ensuring product availability. Mobile apps with GPS tracking and real-time updates enhance user experience, while electric scooters, bicycles, and even drones improve last-mile logistics, reducing both delivery times and environmental impact.
The widespread adoption of digital payments has further fueled Q-commerce growth, making transactions seamless and secure. Contactless payments and digital wallets enable faster checkouts, ensuring a smooth shopping experience. The pandemic also reinforced hyperlocal delivery trends, as consumers became increasingly reliant on these services for daily essentials.
As quick commerce continues to expand, traditional retail businesses are struggling to adapt. The pandemic accelerated the shift toward online shopping, and many consumers who switched to digital platforms have not returned to physical stores which led to reduced foot traffic in brick-and-mortar retailers, while the high costs of maintaining physical outlets like rent, utilities, and staffing affects profitability.
Unlike quick commerce, which is benefited by cost-effective dark stores in low-rental locations, traditional retailers operate in prime commercial areas, leading to high operational expenses. Also, to maintain high stock of inventory becomes difficult for traditional retailers that makes it difficult for them to compete with online platforms offering a vast selection of products with doorstep delivery.
Another key challenge is the slow adoption of digital solutions. Many small and medium-sized retailers lack the expertise or resources to integrate technology into their operations, affecting their market share, therefore online transformation of business becomes essential for the traditional retailers to survive.
Quick commerce is reshaping urban shopping scenario, offering instant deliveries that fulfill the growing demand for convenience. But while it grows in metro cities, its expansion in smaller towns seams difficult. Unlike densely populated cities where demand is concentrated and logistics is profitable, tier 2 and tier 3 cities face challenges like higher delivery costs and scattered demand. This makes it difficult to sustain the ultra-fast delivery model, keeping traditional retail strong in these regions, where people still rely on physical stores for their daily needs.
The real challenge for quick commerce is long-term profitability. While the model works in high-demand urban areas, its feasibility in smaller towns remains uncertain. Warehousing and operational costs is often more than the returns, making the long-term sustainability difficult. The US market has already seen several quick commerce startups—Fridge No More, Buyk, Jokr, and Getir—fail due to financial pressures.
India’s retail sector as a whole is on a steady growth path. According to PwC, the market is projected to reach US$ 1,892 billion by 2029-30, growing at a CAGR of 10.3%. E-commerce, the fastest-growing segment, is set to hit US$ 220 billion, expanding at 22.5% CAGR. Notably, nearly 50% of Indian consumers prefer a hybrid shopping model, blending online convenience with offline reliability.
The rapid rise of Q-commerce has reshaped India’s urban retail landscape, and its future will be shaped by innovation, consumer behavior, and economic factors. Traditional retail, though challenged, still holds a strong position, particularly in non-metro regions.
Q-Commerce:
Opportunities:
Challenges:
Brick-and-mortar retail:
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For Traditional Retail:
In the long run, a hybrid shopping model will dominate—where consumers seamlessly switch between Q-commerce and traditional retail based on need, category, and convenience. The future will belong to those who adapt and innovate while keeping the customer at the center of their strategy.
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