Quick commerce thrived in 2024—will it keep up pace in 2025?

As 2024 wraps up, quick commerce (q-comm) platforms have evolved from a solution for last-minute needs to a staple in the everyday lives of consumers. For many, q-comm has turned into the contemporary version of a magic genie, delivering everything from groceries to gadgets in merely 10 minutes.

A recent report by Meta revealed that 91% of online consumers are aware of q-comm platforms, with over half actively using them. This growing popularity has driven other platforms to diversify their offerings, which now includes consumables, electronics, apparel, and baby care products. 

Such expansions have begun to eat into the market share of traditional e-commerce, forcing giants such as Flipkart and Amazon to enter the space with their own q-comm initiatives, Minutes and Tez.

Tata is also gearing up to compete with its upcoming service, NeuFlash, while Myntra has launched M-Now. Other players such as Magicpin (magicnow) and Nykaa are experimenting with 10-minute deliveries to stay relevant.

The backbone of q-comm remains its speed. Zepto recorded its fastest delivery in just 25 seconds, while Swiggy Instamart completed one in 89 seconds. The promise of near-instant delivery has even extended to high-value items like the iPhone 15, further boosting consumer confidence in the model.

Despite the intense competition, Zomato-owned Blinkit dominates the market with a 46% share, followed by Swiggy Instamart at 27%, Zepto at 21%, and Big Basket at 7%. 

The festive season has proven to be a significant driver for the growth of q-comm, according to an Economic Times report. Consumers increasingly opted for ultra-fast deliveries, helping the sector record transactions worth $1.1–1.2 billion during the period, which typically begins in the last week of September and ends by November. Platforms leveraged this surge by offering gift boxes, discounts, and promotions to attract more users.

The financial muscle behind these platforms is also evident in their advertising budgets. Q-comm ad spending crossed Rs 1,000 crore this year. Zepto allocated Rs 303 crore for advertising in FY24, a sharp increase from Rs 215.82 crore the previous year.

Blinkit increased its marketing expenditure to Rs 191 crore. Swiggy Instamart's individual spending remains undisclosed, but parent company Swiggy reported that it spent Rs 1,850 crore on advertising and promotions in 2024.

Food delivery 

In 2024, quick commerce platforms ventured aggressively into the food delivery space, bringing their signature rapid delivery speeds to the sector. This move signals a strategic expansion, combining convenience with the growing demand for ultra-fast service.

Swiggy introduced its 10-minute food delivery service, Bolt, which has quickly scaled to over 400 cities. Partnering with more than 40,000 restaurants, including major chains such as KFC and McDonald’s, Swiggy reported that 5% of its food orders now come through Bolt, showcasing the model's growing traction.

Zomato's q-comm arm, Blinkit, launched Bistro, a dedicated app for delivering snacks and other food items within 10 minutes. This marks Zomato’s renewed attempt in the space after its earlier initiative, Zomato Instant, failed to gain traction.

Zepto, which pioneered 10-minute food delivery, has taken its operations a step further with the launch of a separate app, Zepto Cafe.

The platform has already revealed a milestone of 30,000 orders per day from its cafe business, underscoring the growing demand for rapid food deliveries.

Challenges 

In 2024, q-comm continued to dominate headlines as a transformative force in retail. However, the sector may face significant hurdles in 2025, driven by regulatory scrutiny, strained relationships with traditional trade, and shifting industry dynamics.

The Confederation of All India Traders (CAIT), representing Indian traders, has raised concerns with union commerce minister Piyush Goyal over alleged legal and regulatory violations by q-comm companies.

The body alleged that these platforms are violating several domestic laws in the country, including Foreign Direct Investment (FDI) norms, the Competition Act, and the Consumer Protection Act.

Kirana stores, the foundation of India's traditional retail sector, are facing significant challenges. Many allege that q-comm platforms are acting as direct distributors for major FMCG companies, bypassing traditional distribution networks.

The All India Consumer Products Distributors Federation (AICPDF) reported that approximately 200,000 kirana stores shut down in the past year due to the rapid expansion of q-comm platforms, which they argue undermines small retailers' livelihoods.

However, profitability remains a critical challenge for q-comm platforms. Despite their widespread appeal, the model is being sustained by razor-thin margins and heavy investments in infrastructure, marketing, and logistics.

Balancing low delivery charges and competitive pricing with sustainable growth will test the resilience of these companies in the coming year.

Meanwhile, direct-to-consumer (D2C) brands, which thrived on the quick commerce model in 2024, are reassessing their strategies.

According to a report by Mint, many D2C companies are considering reducing their reliance on instant delivery platforms in 2025, citing concerns over costs and the long-term viability of such partnerships.

Q-comm faces additional challenges heading into 2025, including the operational complexities of maintaining dark stores, ensuring a steady workforce of delivery personnel, and investing in advanced technology to enhance efficiency and user experience.

The coming year will be pivotal in determining the trajectory of this fast-evolving sector. Will quick commerce solidify its position as an integral extension of e-commerce, transforming into a go-to marketplace for virtually every purchase? Or will the mounting pressures of profitability, regulation, and competition slow its momentum? Only time will tell.