The Indian retail segment has witnessed a revolutionary transformation with the emergence of quick commerce. Widespread digital and smartphone adoption and the demand for convenience and faster services has driven the growth of quick commerce platforms over the years, while also reshaping consumer purchasing habits. The defining feature is the ability to fulfil orders at super speeds, often less than 30 minutes. Central to this model is a highly efficient supply chain. To sustain these operations, the network must be both scalable and reliable. Moreover, the integration of advanced technology is critical to streamlining operations and enhancing efficiency.
Current scenario
The quick commerce segment in India is led by key players such as Swiggy Instamart, Blinkit, Zepto and BigBasket. These platforms are distinguished by their ability to deliver products within minutes, significantly accelerating delivery timelines. The concentration of customers in select areas, urban density and the strategic placement of fulfilment centres enable them in achieving quick delivery. In its early stages, quick commerce focused on daily essentials and groceries. Over time, the commodity range has broadened to include categories such as home appliances, electronics and apparel, among others.
Major e-commerce players such as Flipkart and Amazon are also venturing into the quick commerce segment, targeting to slowly hold a share in the overall market. In August 2024, Flipkart made its entry into the segment with the launch of its Minutes. The service features the delivery of commodities such as groceries and electronics within minutes. This service was initially launched in select areas at Bengaluru in Karnataka, but now it is available in 14 cities. On similar lines, Amazon has commenced the testing of its quick commerce service called Tez in the country. The pilot is targeted at select pin codes in Bengaluru.
Warehousing and storage
Quick commerce platforms generally function with the help of dark stores. These mini-warehouses or fulfilment centres form a key aspect of the supply chain. In addition to maintaining adequate and relevant stocks, their location in urban areas plays a key role in achieving faster delivery speeds. They are strategically located in prime areas, functioning as destinations, where goods can be packed as per orders and delivered to desired locations.
These platforms have significantly expanded their footprint across the country, increasing service locations and consequently setting up dark stores. For instance, Swiggy Instamart added 316 dark stores during the fourth quarter of FY 2025 and expanded its service areas to 124 cities. With this, its total active dark store area has risen to 4 million square feet. Around 10 per cent of this dark store area comprises megapods, which are enlarged dark stores. Meanwhile, Minutes, the quick commerce segment of Flipkart, which commenced with around 100 stores, now has a footprint of close to 300 stores. It targets to have 800 dark stores by the end of 2025.
Dark stores also have various technologies integrated to streamline stock management and orders. Orders once received are processed within minutes with the help of technologies that aid in quick navigation through the warehouse, inventory recognition and automation.
With operations currently expanding at a rapid scale, the need for routine audits and compliance from the safety and hygiene aspects of storage becomes imperative. Recent cases of negligence in storage and handling conditions have further highlighted demands by companies for dark stores to comply with storage standards and hygiene benchmarks. Moreover, a ramp-up in surprise checks by authorities such as the Food and Drug Administration (FDA) and the Food Safety and Standards Authority of India (FSSAI) has been witnessed at these dark warehouses.
Last-mile delivery
With quick delivery being the unique selling proposition of quick commerce platforms, last-mile delivery forms one of the most important aspects in this segment. With dark stores strategically located, delivery partners are required to travel short distances, which are generally less than 5 km. This distance, however, vary with the number of dark stores set up by the platform. The integration of technology has further enhanced the last-mile delivery for these platforms. Optimised routing and real-time tracking have aided in quicker and streamlined deliveries, while also providing an added feature to customers.
Apart from this, quick commerce platforms are increasingly cashing in on the use of electric vehicles (EVs) for last-mile deliveries. EVs aid in reducing operating costs, in addition to offering a cleaner alternative. For example, Minutes is working towards setting up charging stations at its dark stores, and more than 20 per cent of the deliveries are carried out using EVs. Meanwhile, Swiggy targets to transition to a 100 per cent EV fleet by 2030 and ensure 100 per cent renewable energy in direct operations.
EV manufacturers are also tapping into this demand, launching EVs that are targeted towards delivery partners. Additionally, the use of EVs has also led to a positive impact on companies offering battery swapping and charging technologies. Demand from delivery partners forms a key component of the customer base for these companies. As of February 2025, EMO Energy has set up fast-charging facilities at around 200 Blinkit and BigBasket stores, with the target to expand to 10,000 stores and around 100,000 vehicles, using battery packs and energy ecosystems.
Quick commerce players are also exploring the use of drones as an emerging mode for last-mile deliveries. Drone companies, which initially were driven towards defence, are now venturing into the last-mile and quick commerce segment. They are launching pilots in various parts of the country to test speed and reliability. They are also expected to overcome challenges faced on roads, including congestion, traffic and high emissions, resulting in faster speed and lower obstructions. Skye Air launched the Skye Drop initiative at select locations in Bengaluru in March 2025, following successful trials in Gurugram. The company is set to collaborate with local partners, e-commerce bands and quick commerce platforms. Further, BigBasket and Skye Air have deployed drones to deliver medicines and groceries to a residential society in Bengaluru.
Drones have also been increasingly deployed for the delivery of medicines and transport of samples, vaccines, etc., aiming to cater to last-mile challenges and increase transportation speeds. In October 2024, drone services were launched at AIIMS (All India Institute of Medical Sciences) Bibinagar to serve 11 tertiary care centres, including the institute itself. Trial runs conducted for the transportation of medicines and samples reduced the time taken from around two hours to five to eight minutes. Further, the Indian Council of Medical Research (ICMR) launched a study on the aerial transportation of human corneas and amniotic membrane grafts. As part of the feasibility study, drones successfully transported corneal tissues from Sonipat to Jhajjar and then to Delhi, reducing the time taken between the two cities from around 2.5 hours to 40 minutes. Further, the i-DRONE initiative by ICMR has also successfully carried out the delivery of medical supplies and samples, using drones in the north-eastern states, Himachal Pradesh, Karnataka, Telangana, and NCR.
In sum
While the quick commerce segment has been expanding, the profitability of market players is a pain point. As per sources, one of the factors that stresses finances is the opening up of new dark stores. Quick commerce players are seen to have high burn rates in this regard, through incurring capital expenditure on the opening up of these dark stores, while also directing funds towards marketing. However, by capturing the market and ensuring that the minimum number of daily deliveries are achieved, they are likely to break even.
On the whole, a strong and robust supply chain would ensure the efficient functioning of the quick commerce segment. Storage and warehousing conditions play an important role, on the back of the demand by companies to ensure that their products are stored in the required conditions, and also due to customers’ need to maintain their trust in quality products. Positive factors, including urban density, fast-paced lifestyle, demand from non-metro cities and diversified demand for products, are further expected to drive growth. Moreover, the segment has a notable scope for further integration of technology in the form of predictive analysis, demand forecasting and for efficiently maintaining stocks.
