Quick-Commerce Boom: Are Blinkit and Instamart-Style Players Turning Profitable?

Speedy Summary

• Swiggy Ltd. shares jumped 20% last month, surpassing the NSE Nifty 100 index growth, while eternal Ltd. (formerly Zomato) rose by 11%.
• India’s quick-commerce market, which delivers essentials within minutes, is showing strong performance compared to Chinese delivery companies struggling with price wars.
• Analysts credit established players like Swiggy, Eternal (Blinkit), and Zepto for their successful early entry and robust supply chains.
• Nirav Karkera of fisdom noted that delivery cost management is a key strength of incumbents; new entrants like Amazon and Flipkart must demonstrate sustainability in this area to compete effectively.
• Bloomberg Intelligence estimates India’s quick-commerce market will expand to $100 billion by 2030 due to rising demand for fast delivery of groceries and personal care items.
• Blinkit leads the sector alongside Swiggy Instamart and Zepto – together controlling approximately 88% of the Indian quick-commerce space as per JM Financial studies.
• Heavy investments in warehouses have helped early movers grow rapidly but strained profit margins temporarily; analysts expect profitability improvement going forward.
• growth challenges remain: Zepto’s rise impacts Instamart’s share; while Swiggy operates at a loss despite optimistic analyst sentiment following its IPO in late 2024.

[Representational Image | MetricsCart]

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