The rise of quick commerce (Q-commerce) in India has significantly impacted the Quick Service Restaurant (QSR) sector, prompting a major shift in consumer behavior, delivery expectations, and operational models. As consumers increasingly demand faster and more convenient delivery options for food and groceries, QSR brands are under pressure to adapt swiftly to these changes. Delivery times have decreased from 30 minutes to as little as 10 to 15 minutes, leading to a dramatic transformation in the competitive landscape for QSRs. This evolution is not merely about keeping pace with the demands of the modern consumer; it also involves leveraging technology, rethinking customer engagement, and innovating delivery models.
The Growth of Quick Commerce in India
India’s quick commerce industry has experienced explosive growth in recent years. According to a report by Chryseum, the sector’s Gross Merchandise Value (GMV) surged from $500 million in FY 2021-22 to $3.34 billion in FY 2023-24, marking an impressive 73% annual growth rate. With this rapid expansion, the Q-commerce sector is projected to reach a GMV of $9.95 billion by 2029, reflecting a compound annual growth rate (CAGR) of over 4.5%. This boom is largely attributed to the increasing consumer preference for faster deliveries, particularly for essential items such as groceries, medicines, and food.
Several startups and established players have emerged as leaders in the Q-commerce sector. Notable names driving the growth of Q-commerce in India include Zepto, Blinkit, Swiggy Instamart, Dunzo, and BigBasket, each utilizing innovative business models to provide customers with lightning-fast delivery times.
1. Zepto
Founded in 2021, Zepto has rapidly emerged as a key player in the Indian quick commerce industry, particularly within the grocery and essentials segment. With delivery times of just 8 to 10 minutes, Zepto has distinguished itself by leveraging a network of over 100 micro-warehouses, allowing it to manage 2,500 orders daily across cities such as Mumbai, Delhi, Bangalore, and Chennai. The company’s pricing model, which includes nominal platform fees and increased charges during peak hours, enables it to maintain profitability while scaling efficiently.
2. Blinkit
Previously known as Grofers, Blinkit is widely recognized as one of the pioneers of quick commerce in India. With a 46% market share, Blinkit boasts the largest footprint in the sector, operating in 14 cities and managing over 250 micro-warehouses. Through partnerships with 14,000 delivery agents, Blinkit can fulfill orders within 10 to 20 minutes, solidifying its position as a market leader in the fast-paced delivery industry.
3. Swiggy Instamart
Launched in 2020, Swiggy Instamart leverages Swiggy’s extensive food delivery infrastructure to provide groceries within 45 minutes. With a market share of 27%, the platform has become one of the most prominent players in the Q-commerce sector. By partnering with dark stores and adopting eco-friendly delivery methods, such as e-bikes, Swiggy Instamart has significantly reduced delivery times and enhanced its operational efficiency.
4. Dunzo
Dunzo, known for its AI-driven logistics, delivers groceries, medicines, and other essentials within 35 to 40 minutes. The platform strategically utilizes AI to optimize delivery routes and manage demand more efficiently. Furthermore, Dunzo has increased its revenue through advertising partnerships with direct-to-consumer (D2C) brands that promote their products on the platform.
5. BigBasket
A household name in online grocery delivery, BigBasket has also ventured into the quick commerce space with its service, BB Now. Operating in over 40 cities, BigBasket integrates its existing infrastructure with dark stores and partnerships with local Kiranas to facilitate rapid grocery delivery. This diversification has allowed BigBasket to compete effectively in the ultra-fast delivery market while preserving its reputation for quality.
The Impact on Quick Service Restaurants (QSRs)
As Q-commerce continues to gain momentum, the Quick Service Restaurant (QSR) industry is undergoing a significant transformation. Traditionally, QSRs have prided themselves on offering fast, convenient meals with an emphasis on speed. However, they are now being outpaced by the growing demand for ultra-fast delivery times. While a 30-minute delivery window was once considered a competitive advantage for QSR chains, the rise of Q-commerce platforms offering quick delivery has disrupted this expectation. Consequently, QSRs must reevaluate their entire operational and delivery models to remain competitive in an ever-evolving business landscape.
1. Heightened Competition
The increasing popularity of Q-commerce platforms means that QSRs are no longer competing with other fast food chains; they are contending with platforms that specialize in ultra-fast grocery and essential deliveries. Alok Chawla, co-founder of Kiko Live, notes that QSRs are compelled to adapt to these new dynamics. ‘The rise of Quick Commerce is altering the landscape of the QSR industry. At Kiko Live, we’re piloting with smaller food stalls, enabling them to fulfill orders in 10 to 15 minutes, catering to the demand for fast, convenient snacks,’ says Chawla.
This increased competition has led QSR chains to explore innovative methods for engaging customers and improving service efficiency. For instance, Zepto is not only delivering groceries but has also launched Zepto Café, a service offering snacks and fast food to customers within 10 minutes.
2. Operational Pressure on Delivery Times
For QSRs, the emphasis on delivery times of 30 minutes or less—now regarded as the industry standard—is driving significant changes in kitchen operations and delivery systems. As consumer expectations shift toward even faster deliveries, QSRs are investing heavily in advanced technologies to optimize both food preparation and delivery. AI-powered ovens, robotic cooking systems, and order optimization software are common tech aiding QSR businesses in accelerating food preparation without compromising quality.
3. Evolving Consumer Expectations
Today’s consumers demand not only speed but also convenience, personalization, and a seamless experience. Nidhi Singh, co-founder of Samosa Singh, explains, ‘Quick commerce is altering the landscape of the QSR industry. At Samosa Singh, we streamline our delivery times and ensure that our samosas are fresh and of high quality. We utilize technology to adapt and stay ahead of customer demands. Further to strengthen our connection with customers, we keep offering exclusive deals via our app and personalized promotions.’
As more consumers turn to Q-commerce platforms for convenience, QSRs must meet these heightened expectations by offering more personalized experiences, optimizing their apps and websites for easier navigation, and ensuring that food quality is maintained during delivery.
4. Leveraging Technology for Speed and Efficiency
To stay ahead of the competition, QSRs are increasingly adopting AI, machine learning, and robotics to enhance their delivery models and streamline kitchen operations. For instance, 99 Pancakes, a popular QSR, has invested in technology to ensure that its pancakes are delivered fresh and fluffy. Vikesh Shah, the founder of 99 Pancakes, states, ‘Fast delivery is only half the battle—ensuring that the pancakes arrive just as fresh and fluffy as when they left our kitchen is our top priority. Our packaging is designed to maintain the quality of our food during transit.’
Moreover, QSRs are implementing real-time inventory management systems to optimize delivery schedules and monitor supply chains more effectively. Kiko Live and other smaller brands are integrating with Q-commerce platforms to manage demand and offer rapid delivery.
The Strategic Response: Loyalty Programs, Micro-Fulfillment, and Localized Engagement
With changing market dynamics, QSRs are also adopting new strategies to boost customer loyalty and improve operational efficiency.
1. Loyalty Programs and Direct Consumer Engagement
Loyalty programs are key to QSR strategies for customer retention. Brands like 99 Pancakes use apps to offer personalized promotions, discounts, and rewards to keep customers engaged and encourage repeat orders. ‘We want to reward our regular customers for their loyalty,’ says Shah.
2. Micro-Fulfillment Centers and Ghost Kitchens
To speed up delivery times and cut costs, QSRs are setting up micro-fulfillment centers or ghost kitchens in high-demand areas. These small kitchens focus on fulfilling online orders quickly and efficiently. Brands like KFC, Chipotle, and McDonald’s have integrated this model to ensure faster deliveries.
3. Localized Marketing and Community Engagement
Hyper-local marketing helps QSRs connect with specific customer demographics. Social media and influencer collaborations build brand awareness, while personalized app promotions, like those by Samosa Singh, strengthen customer relationships through immediate feedback and tailored deals.
The Road Ahead
While the growth of Q-commerce presents significant opportunities for QSRs to innovate, it also poses numerous challenges. The cost of technology investments, delivery platform fees, and the pressure to maintain food quality while meeting rapid delivery demands are some of the key hurdles QSRs must overcome.
