International Journal for Multidisciplinary Research (IJFMR)

E-ISSN: 2582-2160 ● Website: www.ijfmr.com ● Email: [email protected]

Key Factors Driving the Rapid Growth of Quick

Commerce in Urban Areas of India
Anshika Goyal

Student Chatrabhuj Narsee School

Abstract
The rise of quick commerce (Q-commerce) in India signifies a transformative shift in the retail landscape,
particularly within urban environments. Defined by hyper-local delivery services that promise to deliver
essentials within minutes, Q-commerce has rapidly become a cornerstone of urban consumer behaviour.
This paper investigates the primary factors driving this growth, emphasising consumer behaviour,
technological advancements, and strategic business practices. Through an analysis of secondary data, the
study identifies the increasing penetration of smartphones and affordable internet as foundational enablers
of this phenomenon. Additionally, evolving urban lifestyles, marked by time scarcity and a demand for
instant gratification, are shown to significantly influence consumer adoption. The research highlights
innovative business models, including dark stores and AI-driven inventory optimization, which facilitate
delivery promises of 10–15 minutes. Moreover, the competitive landscape is analysed, focusing on
aggressive market penetration strategies such as discounts and partnerships with local suppliers.
Challenges, including sustainability concerns, labour practices, and regulatory hurdles, are also critically
examined. By analysing these key drivers, the study offers actionable insights for stakeholders seeking to
navigate and capitalise on the rapidly evolving Q-commerce market in India.

Introduction
The rapid evolution of quick commerce (Q-commerce) in India reflects significant changes in consumer
behaviour and technological advancements. Urban areas, increasingly characterised by fast-paced
lifestyles, have created an unprecedented demand for immediate access to goods and services. In response,
Q-commerce platforms have emerged, offering delivery times as short as 10–15 minutes for essential
items. This paper seeks to explore the key factors driving the growth of Q-commerce in India, with a
specific focus on consumer preferences, technological innovations, and strategic business practices.

Methodology
This study adopts a qualitative research methodology grounded in secondary data analysis. Data were
collected from a range of sources, including industry reports, academic journals, market research studies,
and news articles. The analysis examines trends in consumer behaviour, advancements in logistics and
inventory management technologies, and strategic approaches employed by Q-commerce companies.
Statistical data are employed to illustrate growth projections, market trends, and consumer preferences.
The study also critically evaluates challenges such as sustainability, labour practices, and regulatory
issues, providing a comprehensive understanding of the factors driving the Q-commerce sector in India.
Body

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 International Journal for Multidisciplinary Research (IJFMR)
E-ISSN: 2582-2160 ● Website: www.ijfmr.com ● Email: [email protected]

1. Consumer Behaviour: The Quest for Convenience

The modern Indian consumer increasingly prioritises convenience over traditional shopping methods. A
survey conducted by Bernstein revealed that 64% of respondents order food delivery at least once a week.
This trend is particularly evident among millennials (aged 18–25), who exhibit a strong preference for Q-
commerce platforms due to their tech-savviness and desire for instant gratification.
Urban lifestyles characterised by time scarcity further fuel this demand. With hectic work schedules and
social commitments, consumers are less inclined to shop at traditional brick-and-mortar stores. Instead,
they opt for Q-commerce services, which efficiently and conveniently address their immediate needs and
provide seamless solutions to everyday challenges.
2. Technological Advancements: The Backbone of Q-Commerce
Technological innovation underpins the rapid expansion of Q-commerce in India. The widespread
penetration of smartphones—surpassing 1 billion users—and affordable internet access have made app-
based services increasingly accessible. Companies leverage advanced technologies such as artificial
intelligence (AI) and machine learning to optimise inventory management and enhance delivery
operations.
Micro-fulfillment centres, strategically located within urban areas, allow companies to process orders
quickly and meet consumer expectations for rapid delivery. For example, platforms like Blinkit utilise AI-
driven inventory optimization to ensure high-demand items are consistently stocked at local dark stores,
enabling them to meet stringent delivery timelines efficiently.
3. Strategic Business Practices: Innovative Models and Market Penetration
The competitive dynamics of Q-commerce are characterised by aggressive market penetration strategies
employed by leading players such as Swiggy Instamart, Blinkit, and Dunzo. These companies use tactics
such as significant discounts and collaborations with local suppliers to attract and retain consumers.
For instance, Q-commerce has experienced nearly 100% growth, contributing to 25–30% of e-commerce
revenue for companies like Dabur. Subscription-based services, which allow consumers to receive regular
deliveries of essential items without the need to reorder, further enhance customer loyalty while ensuring
a steady revenue stream for businesses.
4. Market Growth Projections
The Q-commerce market in India is poised for remarkable growth, with projections estimating its
valuation will increase from USD 3.34 billion in 2024 to approximately USD 9.95 billion by 2029. This
growth represents a compound annual growth rate (CAGR) of over 24%, underscoring the sector's
dynamic potential and its increasing prominence within the retail ecosystem.
5. Challenges Facing Quick Commerce
Despite its significant growth prospects, the Q-commerce sector faces several challenges:
● Sustainability Concerns: The environmental impact of increased packaging waste and higher carbon
emissions from frequent deliveries poses pressing sustainability issues that require proactive measures.
● Labour Practices: The surge in demand for rapid delivery has raised concerns about the working
conditions of delivery personnel, highlighting the need for improved labour practices.
● Regulatory Hurdles: Navigating India's complex regulatory landscape presents substantial
challenges for Q-commerce companies as they expand operations across multiple states, requiring
compliance with varied local and national regulations.

IJFMR240631781 Volume 6, Issue 6, November-December 2024 2

 International Journal for Multidisciplinary Research (IJFMR)
E-ISSN: 2582-2160 ● Website: www.ijfmr.com ● Email: [email protected]

Conclusion
The rapid growth of quick commerce in India is driven by a confluence of factors including evolving
consumer behaviour towards convenience, technological advancements facilitating efficient operations,
and innovative business practices that enhance market penetration. As this sector continues to evolve
amidst challenges such as sustainability concerns and regulatory complexities, it presents a wealth of
opportunities for stakeholders willing to adapt.
By understanding these dynamics, businesses can better position themselves within this burgeoning
market landscape. The future of quick commerce in India appears bright; however, success will depend
on balancing growth with operational efficiency and environmental responsibility.
Possible Areas for Future Research
Future research could explore several areas related to quick commerce:
1. Sustainability Practices: Investigating how Q-commerce companies can implement sustainable
practices without compromising service speed or customer satisfaction.
2. Impact of Regulation: Examining how evolving regulations impact operational strategies within the
Q-commerce sector.
3. Technological Innovations: Future studies could focus on emerging technologies that could further
enhance efficiency in logistics and supply chain management within quick commerce.
By addressing these areas, researchers can contribute valuable insights that will help stakeholders navigate
the complexities of this dynamic market effectively.

References
1. Vignesh M Mano & Patel Fenil Pramodbhai (2022). Factors influencing quick commerce in India.
Indian Institute of Management Bangalore. Retrieved from IIMB Repository.
2. Ranjekar Gauri & Roy Debjit (2023). Rise of quick commerce in India: business models And
infrastructure requirements. Indian Institute of Management Ahmedabad. Retrieved from IIMA
Repository.
3. Gupta Shivom (2024). A Study on Emergence of Quick Commerce - IJFMR.
4. MBAUniverse.com (2024). Quick Commerce in India: Urban Necessity or Waste of Resources?
Retrieved from MBA Universe.
5. Mordor Intelligence (2024). Quick Commerce Market in India Size & Share Analysis.
6. International Research Journal of Modernization in Engineering Technology and Science (2024). The
Impact of Quick Commerce on Customer Purchase Decisions and Consumer Satisfaction: A
Quantitative Research.

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