Soumitra Sharma’s Post

Quick will eat all Indian commerce! Marc Andreessen said, "Software will eat the world" in the 2000s to suggest how big the software opportunity really was and how we were at the start of a megatrend! Similarly, based on the extreme habit forming around quick commerce in India, it is apt to wonder if "Quick will eat all Indian commerce". The pace of adoption of quick commerce and the intensity of PMF (one of our founders said they often end up ordering groceries "after" their cook shows up!!!) may be almost as strong as UPI. Everyone who has experienced "quick commerce" is not going back. We are seeing this across categories - while it started with groceries, the response to "quick" in food, fashion, beauty, and even construction material has been telling...all based on real data. Timing may be an important factor here - we are more ready to cost-effectively deliver the "quick" experience than we have ever been. For example, Yulu, which delivers India's most durable & most cost-effective unit of EV mobility, powers crores of "quick rides" every month and has the full-stack capacity in place to scale it! Blitz started building their last-mile infrastructure for brands two years ago and is ready to cater to the "quick demand". Wherehouse, similarly, started two years ago and has everything in place for powering another piece of this infrastructure. These are just our portcos - am sure there are others I don't know who are building other pieces of this puzzle! Slikk is delivering curated fashion in 60 minutes all over Bangalore. In HSR, Swish is delivering fresh food in 10 mins. Cital is pioneering "quick" in construction material that was never imagined before. Incumbents are racing to figure out their "quick" strategy almost as frenetically as software incumbents adding AI copilots! A lot is up in the air though. How will this all pan out? What will brands do? How quickly will incumbents cannibalize their e-commerce stores for a quick commerce strategy? Who will deliver? How will returns work? Non-EV logistics are unlikely to work from an economics perspective - so the question is how fast and large can Yulu scale? What are other solutions? Will quick commerce stack be fully vertically integrated OR will it be fully disaggregated and federated? Will Yulu publish its capacity (demand and supply) on ONDC for riders to pick it up for a win-win-win? How will vertical quick commerce players create differentiated supply chains and customer experiences? All fun stuff -- but the time is now. It's all happening now and those building at the edge are learning fast and iterating to build a stack that will power the "Quick India Movement" as I call it. ....or I am completely wrong here :) Time will tell. For now, we are all-in and will share more as we learn.

Quick commerce, call it next disrupter or logical progression where delivery time is getting shorter from week to day to hours now minutes, is here to stay and every business will have to eventually adopt to it. Question which Yulu is answering is how we can enable livelihood while providing environment friendly electric bikes which are also neighborhood friendly - silent, safe and smoke free. Imagine all these deliveries on Petrol bikes....

🤔 Will Quick Commerce 'ever' be Profitable? 🏫 This is a glimpse of what the class assignment would be in The Cambridge MBA Cambridge Judge Business School! 👩🎓 👩💻 👩🏫 I and several friends, Nadia Shafira Novarena Shreya Singiri Srikanth Yohana Betania Yanzhi Lai Tanu Gupta were researching about The Quick Commerce in the Marketing and Innovation in Emerging Market Class, taught by our Professor, Jaideep Prabhu. 🏍 Quick Commerce market focuses on online grocery delivery services that provide customers with last-mile delivery, or operate dark stores where product selection is limited but delivery time is faster. 🌎 The market worldwide is anticipated to achieve a remarkable revenue milestone of US$ 170.80bn by the year 2024 (Statista). It has a promising market in the emerging countries such as, Indonesia - US$ 3.15bn in 2025 and India - US$ 5.38bn. It has also shown promising forecast in the developed market, China - US$ 92.68bn. 🛍 Quick commerce (q-commerce) is not a new concept. It was first introduced by Kozmo in 1998, though Kozmo shut down in 2001. Renewed attempts at q-commerce began around 2013-2014 with Gopuff and Getir entering the US and European markets, followed by Dunzo and MissFresh in Asia. 🚀 The sector experienced rapid growth during the COVID-19 pandemic, leading to 770 investment deals and around $30 billion in funding. 🇮🇩 🇮🇳 During the same period, new q-commerce startups emerged in India and Indonesia, supported by investments from US and European firms like Y Combinator and Sequoia Capital. Despite this growth, the industry faces profitability challenges due to rising costs in goods, delivery, and warehousing. 🇨🇳 However, developments in China's q-commerce market indicate a possible path to profitability. Even, the EU and US Quick Commerce are all eyeing to China's strategy as well. 🚚 To achieve it, EU and US strategies such as mergers and acquisitions, with some startups being acquired by large retail companies, could help alleviate these challenges. 🔔 Q-commerce has significant potential due to its growing market of younger and affluent customers. To achieve profitability, four key issues must be addressed: 🏷 Market entry optimisation, by start small, sell big, and specific target; 💰 Addressing profitability margin potential through private labeling, in-app advertisements, and dynamic pricing; 🛤 Sustainable operations by designing optimal warehouse locations and routes, promoting non-perishable products, and cross-utilization delivery fleets; 🖥 Marketing by diversifying communication methods and exploring referral methods in Tier 1 vs Tier 2 & 3 markets. 💡 So, do you think there is another path for profitability for Quick Commerce? #MBAJourney #Analysis #Marketing #QuickCommerce #DAStory #Strategy *I only attach my slide part below, but the story above has summarised all the analysis. Happy reading! 😊

Blinkit is Transforming Quick Commerce in India while being Committed to Sustainability. ♻️ 🚀 Here’s the interesting story: Blinkit, formerly known as Grofers, is a prominent player in India's quick commerce sector, specializing in the ultra-fast delivery of groceries and essentials. Founded by Albinder Dhindsa and Saurabh Kumar, Blinkit has redefined convenience in urban shopping with its promise of delivering orders in minutes. CEO Albinder, an alumnus of IIT Delhi and Columbia Business School, brings a blend of technical expertise and global business acumen. His leadership has been pivotal in navigating Blinkit through the evolving landscapes of e-commerce and quick commerce. Co-founder Saurabh, who has stepped back from day-to-day operations in 2021, played a crucial role in the initial setup and scaling of the company, contributing significantly to its early growth and operational strategy. Blinkit's Mission: - Blinkit's mission is to revolutionize the grocery delivery experience by ensuring speed, efficiency, and convenience, thereby setting new standards in the quick commerce industry. - Through technological innovation and operational excellence, Blinkit aims to provide a seamless shopping experience, ensuring customer satisfaction with every order. Fascinating Facts: - Blinkit raised a total of $757 million over 15 funding rounds. Notable investors include SoftBank Vision Fund, Tiger Global Management, and Sequoia Capital. The company was valued at approximately $1 billion as of September 2021. - In 2022, Blinkit was acquired by Deepinder Goyal's Zomato for $568 million in an all-stock deal. This acquisition has been instrumental in integrating Blinkit’s quick commerce capabilities with Zomato’s extensive food delivery network, enhancing both companies' market positions. - In the fiscal year 2023, Blinkit's revenue surged threefold to Rs 724.2 crore, up from Rs 236.1 crore in FY22. - Blinkit has expanded its services across major Indian cities, handling over 55.8 million orders in Q3 FY24, a 77% increase from the previous year. - Blinkit has successfully monetized its platform through advertising, with ad revenue growing 220% year-on-year in Q3 FY24. - Despite the challenges of quick commerce, Blinkit is committed to sustainability. The company has taken steps to reduce its carbon footprint by incorporating eco-friendly packaging and optimizing delivery routes. With its robust funding, strategic partnerships, and continuous focus on operational excellence, Blinkit is poised to maintain its leadership in India's quick commerce sector. #Blinkit #QuickCommerce #India #Startups #Innovation #Technology Pic Credits: Forbes India *** Enjoy this? Share it with your network and follow me Vaibhav Sharma for more in future!   I write about interesting businesses, entrepreneurs, and high performance. Join my inner circle here: https://lnkd.in/gZKZ_Zdb

AT WHAT COST? Tata is entering to quick commerce with Tata Neu Flash, Reliance’s is entering quick commerce, all these bold move into quick commerce is eye-catching, but as we race towards 10-minute deliveries, we have to ask — at what cost? Reliance’s latest foray into the quick commerce market — aiming for a 10-to-30-minute delivery target — is set to disrupt the status quo. Leveraging its extensive supermarket network, Reliance joins a space dominated by startups like Swiggy, Zepto, and Blinkit even Tata entering into it! But but but as they scale at record speeds, quick commerce isn’t just a logistical innovation; it’s a reflection of our demand for speed, convenience, and instant satisfaction. For instance getting gold in 10 min on Dhanteras!!! Where is the shopping experience? That pride of moving out of gold shop feeling that you have possessed something with your hard earned money? And that spiritual feel that you have done something good on a shubh day? Okay leave it, Just think, While consumers might celebrate, there are deeper questions about what this means for our economy and society! Many of these services thrive on small orders, high turnover, and a relentless pressure on workers to deliver ever faster. But the dream of rapid growth may mask a larger issue: thriving on what some call "faddish overinvestment," creating jobs that are quick but low quality, in an era where the demand is high, yet true economic recovery is uneven! Just refelect on what you get in your mind while reading this quote-unquote I picked from Bloomberg opinion — “Trouble with other large bets, such as online education and fintech, is leading to faddish overinvestment in quick commerce. For the economy, it’s creating low-quality work amid a jobless recovery” Now think, If the cost of convenience is an unstable job market, is the quick commerce boom sustainable? It should be — yes! But is it — Think? We now no more need unicorns with unsustainable business we need more, as consumers demand more but sustainably. As quick commerce grows, the strategic conversation should be about more than capturing market share. It’s about addressing how we align short-term consumer demand with long-term economic value. This may require balancing delivery promises with the quality of work offered and creating a model that doesn’t just chase trends but builds resilience. I am not a critic, I just can see the bigger picture and I want to see it but more beautiful, sustainable and beneficial for all. Reliance’s or Tata’s entry could be a game-changer, but only if they takes a thoughtful approach that weighs the needs of consumers, workers, and the market at large. Will it deliver? I believe they will. And I have high hopes from big firms who contribute so high in India’s development and growth. Just my holiday thoughts!

How e-commerce and quick commerce impacting traditional businesses today? Consumers have grown increasingly accustomed to receiving their desired products within minutes at their doorstep, creating a new growth avenue for the logistics industry to exceed customer expectations. The efficiency and speed offered by quick commerce platforms in India are unmatched, potentially unparalleled in other parts of the world. While similar services might exist elsewhere, they lack the precision and operational efficiency seen in India, where Indian quick commerce companies are delivering within an impressive 15–20 minute timeframe. The industry is experiencing rapid growth, with a projected annual growth rate (CAGR) of 16.60% from 2025 to 2029. Revenue for 2025 is expected to reach approximately US$5,384 million, which is substantial. As the market expands, the Indian quick commerce sector is anticipated to grow by 75% YoY in 2025. However, this rapid growth raises concerns about the potential decline in sales for local shops and traditional businesses, which have already faced challenges due to the rise of e-commerce in recent years. While this growth is remarkable, my concern lies in finding ways to support traditional shops. By offering them opportunities to adapt and grow, we can create a balanced ecosystem where both quick commerce platforms and small businesses thrive. This approach could also help reduce costs for quick commerce platforms by utilizing dark stores for storage while boosting sales for local businesses.  • Currently, quick commerce platforms rely on dark stores to stock products, which are then delivered to customers as orders are placed. However, an alternative approach could involve local vendors or businesses registering as sellers and directly shipping products to customers, similar to the model used by food delivery platforms.  • This shift would not only expand the product range available to consumers but also support the growth of local businesses.  • Platforms like Swiggy and Zomato have revolutionized the Indian food and beverage industry by creating ecosystems that drive the growth of restaurants and cloud kitchens while fostering innovation and competition. Similarly, quick commerce has the potential to transform the market by opening up opportunities for countless businesses across India.  • Adopting this model could be a game-changer for the quick commerce segment, significantly boosting the industry's growth rate and creating a more inclusive and dynamic market. Blinkit Swiggy Instamart Zepto Dunzo Thankyou!!

🚨 The Dark Side of Quick Commerce: Convenience at the Cost of Sustainability? Quick commerce promises deliveries in minutes and has dazzled consumers and investors alike. But is this model truly sustainable? The cracks are becoming impossible to ignore: 📊 1. The Economics Don’t Add Up Quick commerce platforms are burning through cash at an alarming rate: • Zepto: ₹1,272 crore losses in FY23, with per-order losses at ₹47 despite an AOV of ₹410. • Blinkit: ₹1,190 crore losses in FY23, even after achieving a positive contribution margin. • Swiggy Instamart: ₹4,179 crore losses in FY23, with per-order costs of ₹140–₹145. For every order delivered, companies are losing money. Scale won’t fix this when margins are fundamentally negative. 💔 2. The Hidden Cost to Society This isn’t just about businesses; it’s about people and communities: • Consumers: Subsidies of 20–40% per order create a false sense of affordability. Once they end, consumers will face steep prices. • Delivery Riders: Riders earn ₹25–₹40 per delivery, risking lives to meet tight deadlines. Accident rates for riders have increased by 25% year-on-year in cities like Bangalore and Delhi. • Local Businesses: Kirana stores, the backbone of India’s retail, are being pushed out, threatening the livelihoods of 40 million people. • Urban Chaos: A 15% rise in traffic violations due to rushed deliveries is adding to road congestion and safety issues. Convenience has a cost—are we willing to accept it? ⚠️ 3. The Illusion of Growth Despite their hype, these platforms are heavily reliant on unsustainable practices: • Scale is amplifying losses, not solving them. • Subsidies are masking the true costs for consumers. • Giants like Reliance (JioMart) and Tata (Tmart) with deeper pockets are entering the fray, raising competitive pressure. This isn’t sustainable growth—it’s a ticking time bomb. 🛑 4. The Role of Regulators and Stakeholders It’s time to act before the fallout impacts everyone: • Protect riders with fair wages, realistic delivery timelines, and proper insurance. • Regulate unrealistic promises like “10-minute delivery” to prioritize safety over speed. • Support local businesses with incentives to modernize and compete. • Shift investment priorities toward sustainable growth, not vanity metrics like GMV. ❓ The Big Question Are we ready to pay the real price of convenience? For every ₹100 crore burned in subsidies, we lose local businesses, exploit workers, and risk human lives. Convenience is valuable—but not at the cost of ethics, sustainability, and community well-being. Let’s rethink what we demand from businesses, regulators, and ourselves. What’s your take? Is quick commerce a bubble waiting to burst, or can it become sustainable? #QuickCommerce #Sustainability #StartupEcosystem #UnitEconomics #GigEconomy #DeliveryRiders #SocietalImpact #TrafficSafety #BusinessEthics#zepto

New Post Alert - Topic: New Challenges for Quick Commerce in India   The Evolution of Commerce: From E-commerce to Quick Commerce — What’s Next? In the blink of an eye, commerce has undergone a massive transformation in India. Remember when waiting 5-7 days for online orders felt “normal”? Enter Quick Commerce (Q-Commerce) — a sector promising delivery within hours, sometimes minutes. But how did we get here, and what lies ahead? A Quick History Lesson E-commerce was a game-changer when it emerged, bringing convenience and accessibility to millions. Giants like Flipkart and Amazon India revolutionized the way we shopped, delivering everything from books to furniture to our doorstep. But as consumer expectations grew, so did the demand for faster services. Why Quick Commerce? The answer lies in evolving lifestyles and preferences. Urbanization, shrinking work-life balance, and the rise of nuclear families created a demand for instant gratification. Key Drivers: 1. Tech Advancements: Smartphones, digital wallets, and GPS-enabled logistics. 2. Consumer Behaviour: Impulse buying and last-minute needs. 3. Innovative Startups: Companies like Zepto, Blinkit, and Swiggy Instamart have made it possible to deliver groceries in as little as 10-20 minutes. India’s Q-Commerce Revolution India’s Quick Commerce sector is expected to grow to $5.5 billion by 2025 (Source: RedSeer). Cities like Bengaluru, Delhi-NCR, and Mumbai lead the way, with demand for essentials driving the trend. Challenges on the Road Ahead 1. Logistics Overload: Ensuring timely delivery amidst traffic and unpredictable urban landscapes. 2. Unit Economics: Managing profitability while delivering small-ticket items. 3. Workforce Management: Striking a balance between speed and fair treatment of delivery partners. 4. Sustainability: Rising packaging waste and carbon emissions demand eco-friendly solutions. What Does the Future Hold? Quick Commerce has already started transforming urban lifestyles, offering unparalleled convenience. The future could bring: a. Drone Deliveries: Imagine your groceries delivered by a drone. b. AI & Automation: Smarter inventory management and predictive analytics. c. Sustainable Practices: Biodegradable packaging and carbon-neutral delivery methods. Quick Commerce isn’t just about faster deliveries; it’s about reshaping how we consume. As it evolves, it has the potential to address challenges and bring innovations that enhance both consumer experience and sustainability. The journey is just getting started. What’s your take on the Q-Commerce wave? Are you a fan, or are we moving too fast? Drop your thoughts below! 💬 #QuickCommerce #ECommerce #IndiaStartups #ConsumerTrends #QCommerce #SustainabilityInBusiness #FutureOfWork #LogisticsTech

Let’s admit - we all thought quick commerce was a fad I mean - who needed their stuff in 6 minutes? Turns out, it actually is a massive wave riding on the already growing ecommerce space in India. Let’s get to know quick commerce a bit better: Quick commerce is set to grow at 25% CAGR this year. Nearly 40% of sales for new age FnB brands comes via Quick Commerce. The numbers are also good for skincare / beauty brands. Note this: around half of the entire online grocery market of nearly $11B is quick commerce (Goldman Sachs) The success of quick commerce hinges on several key factors: 1. Changing Consumer Preferences: Today’s millennils and gen z consumers value time as much as money with growing disposable incomes. If I can continue watching my cricket match while my ice cream tub comes to me in 10 mins at a fee of Rs. 30, why would I want to spoil my experience? People are also ordering gold coins, iphones, PS5 and tshirts through quick comm! 2. Quality of Products: The quick comm companies have managed to keep the quality of even perishable products really good. You really don’t need to worry about whether the lemons you ordered will be too small, or if the fruits will be too ripe. In most cases they’re absolutely as you’d have expected. 3. Quick customer query resolution: Even if you had a problem with any product, they have been adept to fix the issue via a refund asap. So the mental agony of having to run behind the app for a replacement or refund doesn’t exist for most customers. 4. Urban Density: Major Indian cities, with their dense populations, provide the perfect environment for quick commerce to thrive. Short distances mean a wider reach for dark stores, and simultaenously faster deliveries. 5. Technological Advancements: From AI-driven inventory management to sophisticated last-mile logistics, technology has played a critical role in enabling these lightning-fast deliveries. 6. Investment and Innovation: Heavy investments in the sector have led to innovations that continuously improve efficiency and speed, making quick commerce more viable and sustainable. Zepto raised $665M last week and took its valuation to $3.6B! Humongous! Quick commerce is not just a trend; it’s the future of retail. It’s setting new benchmarks for customer service and creating opportunities for businesses to reimagine their operations. As we move forward, it will be exciting to see how this space evolves and what new innovations it brings to the table. Are you ready to embrace this change? What are your thoughts on the impact of quick commerce in your life and business? #quickcommerce #retail #zepto #blinkit #eretail #ecommerce

Quick Commerce is transforming urban India, offering lightning-fast deliveries. But this rapid growth brings challenges. How can we ensure sustainability and fair treatment for delivery partners while meeting the demands of instant gratification? Let's discuss the future of Q-Commerce in India. Kunal Bahl #QuickCommerce #qCommerce #SocilaCommerce #sCommerce #eCommerce #IndiaStartups #ConsumerTrends