Summary:

Quick commerce now accounts for 70%-75% of e-grocery orders, up from 35% in 2022, according to a Bain & Company analysis. Strong execution, rising incomes, a broader product range, and increasing consumer demand for convenience are driving growth. Major players like Flipkart Minutes, Nykaa, and Myntra are expanding, while dark store networks enhance logistics for faster, more efficient delivery. Quick commerce profitability is rising, driven by a 40% increase in average order value (AOV) from FY23 to FY25 through expanded product categories and higher free delivery thresholds. Higher-margin D2C products and new revenue streams, such as advertising, have boosted gross margins by 3-4%. Improved operational efficiency and logistical densification have reduced pershipment costs by 25%, ensuring continued growth in the e-grocery sector.

Source: IBEF

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