The unique model of quick commerce, which ensures deliveries within 10-30 minutes, has become the talk of the town.
With big players, including BigBasket, Swiggy, Dunzo, and Ola, among others, hopping onto the trend, the quick commerce segment has gotten a huge push.
Recently, consulting firm Redseer released a report on the growing quick commerce segment in India, which said the segment has grown into a phenomenon in the last two quarters.
Speaking to YourStory about the growing popularity of quick commerce, Abhishek Gupta, Author of the Redseer report and Engagement Manager, said, several players have entered into the space, and in January, the segment recorded a run rate of $1.2 billion.
He added there is a fundamental shift in consumer behaviour, who now prefer convenience over price. Besides, the superior customer experience is driving the demand in the space.
“What we saw in our survey is that speed and reliability came as the top decision-making factors when customers were choosing quick commerce,” he said.
Additionally, prices on the quick commerce platforms are generous and aren’t steep than usual.
Abhishek shared the report expects fast-moving SKUs, including pharmaceuticals, stationery, etc., to get into the space.
He added, “From a supply chain and customer maturity standpoint, we’re seeing enough tailwinds from the supply and demand side to make it suitable for other categories.” However, he said, grocery will continue to be a focus category for this segment.
Abhishek explained that the quick commerce segment is concentrated in metro cities and will continue for the next couple of years.
Going forward, Redseer also expects innovations to happen in the backend. He added the estimated growth numbers might need to be revised, considering the current pace of growth in the quick commerce segment.
Talking about funding, Abhishek said the sector is seeing several organic funding initiatives. “Not sure if we’ll see many more new players, but at least now, there is enough action and expansion current players are going for,” he said.
Edited by Suman Singh