Quick Commerce Success Stories: Leading the Charge in Fast Delivery

The dynamics of fast delivery are transforming. You can now get anything from electronics to apparel within a few hours of ordering.

These options are available because of the increasing efforts of quick commerce companies. Initially, they were limited to products with low profit margins like groceries, baby foods, and household cleaners. Now, the companies are equipping themselves to stock and deliver high-margin products like electronics and luxury goods.

Selling products with higher profit margins yields a greater return on investment (ROI) for the brand. It also helps users as they have more product options.

We have several quick commerce examples leading the industry and some extraordinary newcomers gaining momentum. For example, Swiggy became India's fastest unicorn in 2018, while Zepto became one in 2023’s investment downfall.

Let’s understand how the brands reached their current market position.

Zepto's Quick Commerce Success

As mentioned in Business Standard, quick commerce will take over 70% of online grocery spending by 2030.

To keep up with this opportunity, Zepto is planning new projects. Their co-founder Palicha recently stated that they will add more products to their catalogue. Zepto will soon include categories like kitchen, apparel, home, and beauty based on the user's search.

These smart business decisions are not new to Zepto. They have a history of coming up with innovative solutions when the brand needs them most.

• Dark Stores

Zepto's main strategy is to quickly develop infrastructure and choose locations wisely. They are planning to double their dark stores within 2025. These stores are stocked for app deliveries but inaccessible to the public.

They already placed 340 dark stores around the main delivery areas. Each of these stores is stocked with 6,000 of the most-ordered products. It has a one-minute cycle of picking, packing, and dispatching the product. These stores allow fast delivery and reduce logistic costs.

They are rapidly growing in the Indian quick commerce industry, increasing their brand valuation with effective funding.

• Smart Fundings

In the middle of the April 2023 investment downturns, Zepto made a quick and smart decision. They changed the company's operations from being growth-oriented to a more sustainable business. It helped them raise funding of USD 200 million, and they became the first unicorn in FY2023.

• Non-Grocery Initiatives

After gaining a Unicorn label, Palicha announced potential expansion. They launched Zepto Cafe in Mumbai as a part of their 'beyond groceries' strategy. Co-founders plan to expand Zepto Cafe in Bangalore, Hyderabad, and Delhi in 2024.

They are also looking to expand their warehouse capacities to house more non-grocery items. Recently, Mint stated that Zepto plans on opening 1-2 large facilities in major cities.

• Platform Charges for Profit

Besides such expansions, Zepto is planning to increase the platform fee. They also plan to introduce a late-night delivery fee to increase their profitability. Founders are setting Zepto up for a positive (earnings before interest, taxes, depreciation, and amortisation) EBITDA by doing it. They are looking to grow their EBITDA from 6%-7% to 13%-14% in the coming months.

Zepto’s strategies will boost user satisfaction. They are going to reap benefits from the product expansion and beyond grocery initiatives.

• Impact on Consumers

Zepto’s gets 95% of orders from repeat customers. It proves that they have a loyal user base. It is not because Zepto delivers the fastest but because they are honest with their estimated delivery time.

Additionally, Zepto's inventory has a wide range of essential and non-essential products. High variety and quicker deliveries are the secrets of Zepto’s customer satisfaction.

Swiggy Instamart’s Success

Swiggy expanded its services to online grocery delivery with the launch of Swiggy Instamart in August 2020. It grew to serve 9 million customers within two years of launch and expanded to 25 cities. This business expansion was led by Invesco’s USD 700 million funding in 2022.

Let us understand the strategies behind such performances.

• Smart Mergers

After years of successful operations, Swiggy Instamart is looking to diversify its services. The process started with the Instamart and Insanelygood merger. This helped them deliver fresh premium groceries to various parts of Bangalore.

The second merger came in 2024. Swiggy merged Instamart with Swiggy Mall to bring more choices to customers. With the Swiggy Mall merger, Instamart promised to provide more than 35 product categories beyond groceries. These included clothing, footwear, electronic appliances, sports goods, and many others.

This was a big move by Swiggy ahead of their Initial Public Offering (IPO) announcements.

• IPO Launch

According to the Economic Times, Swiggy has received approval from the shareholders for an IPO in 2024. Prosus, a Dutch company, is Instamart's biggest shareholder.

They expect to raise about 450 million USD through the new shares and another 800 million USD through an offer for sales. Swiggy has consistently upgraded through the years to ensure buyer convenience.

• Impact on Consumers

Fast delivery for groceries has been a core strength of Swiggy Instamart. Plus, they have a strong brand value. Swiggy drives its success through great customer engagements. From empathetic push notifications to active customer support, they have been a start for quick commerce users.

Summing Up: Quick Commerce Success

In the coming years, more buyers will shift to online grocery deliveries. Quick commerce examples like Swiggy Instamart, Zepto, Blinkit, and Dunzo are leading the industry. You should research well before ordering from any of these, as they have minor service differences.

You must have noticed that these quick commerce companies heavily depend on consumer data to decide their next move. They regularly upgrade their web applications' UI/UX designs.

Connect with GrowthJockey today to utilise the potential of the growing quick commerce industry. We will help you with the latest consumer lifecycle trends. At GrowthJockey, we provide all-round digital solutions for your brand’s strategic planning and growth.

FAQs Related to Quick Commerce Success

1. Is Blinkit growing fast in the Indian quick commerce industry?

Blinkit is in the game of being one of the top quick commerce companies in India. They are highly focusing on their 10-minute delivery promise.

They are leveraging user data to bring customer-friendly interfaces. Like the'single mode’ and ‘couple mode’ on their app. They are also trying to bring in more products beyond groceries, like its competitors, Swiggy Instamart and Zepto.

2. Why is quick commerce rapidly growing in India?

Buyers with a hectic lifestyle were already inclined to shop their groceries online. The COVID-19 pandemic boosted the need for fast deliveries.

Users worry about safety but still need products urgently. Many brands have used up this opportunity to grow their quick commerce business. Also, this business model has proven to have easier expansion by taking in a new supplier.

3. What is quick commerce logistics?

Quick commerce logistics defines the efficiency of product deliveries, inventory management, and distribution.

It is crucial for quick commerce businesses and needs optimizations. New technologies like real-time tracking and digitalization of warehouse processes help in logistic improvements.