QUICK COMMERCE- THE INDUSTRY OF IMMEDIATE

ECSTASY

A PROJECT REPORT

Submitted in partial fulfillment for

Bachelor Of Business Administration

By

Prateek Chaudhary

Under the guidance of

Ms. Priyanka

Enrollment No- 22091459

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DECLARATION

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I, Prateek Chaudhary, hereby declare that the presented final research report of “QUICK
COMMERCE- THE INDUSTRY OF IMMEDIATE ECSTASY” is uniquely prepared by me. I also
confirm that the report is only prepared for my academic requirement, not for any other purpose. It
might not be used with the interest of the opposite party of the corporation.

Signature:

Prateek Chaudhary

Student BBA Program

Department of Management Studies

Graphic Era (Deemed to be University)

Dehradun, Uttarakhand (India)

 CERTIFICATE

I have the pleasure in certifying that Prateek Chaudhary is a student of Graphic Era Deemed to be
University of the bachelor’s degree in Business Administration (BBA), her University Roll is
22091459.

He has completed his Final Research Project titled as “QUICK COMMERCE- THE INDUSTRY OF
IMMEDIATE ECSTASY” under my guidance.

I certify that this is his original effort & has not been copied from any other source. This project has
not been submitted in any other University for the purpose of award of any Degree.

This project fulfils the requirement of the curriculum prescribed by Graphic Era Deemed to be
University, for the said course.

I recommend this Final Research Project for evaluation & consideration for the award of Degree to
the student

Signature:

Ms. Priyanka

Professor, Department of Management Studies

Graphic Era (Deemed to be University)

Dehradun, Uttarakhand (India)

ACKNOWLEDGEMENT

First, I would like to take this opportunity to thank Graphic Era Deemed to be
University for having a dissertation as a part of the BBA curriculum. This project is the
outcome of the untiring and determined efforts of all those who guided and directed me
during the making of this project and make it a worthwhile experience. This project
would not be possible without guidance and help of many individuals.

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I gratefully acknowledge my college mentor,Ms Priyanka for giving me the opportunity to work on
a research project and guiding me throughout the journey and constantly encouraging me.

I would like to express my gratitude towards my Parents and Peers for giving me moral and
financial support to complete the work directly or indirectly.

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 LIST OF SYMBOLS

Symbol Name

. Bullet

: Colon

, Comma

. FullStop

% Percentage
Sign

“” “” Quotation
Marks
‘ ‘ ’’

@ AtSign

!
Exclamation Mark

? Question Mark

* Asterisk

List of Abbreviations

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 Abbreviations Full Forms
NPS Net Promoter Score

ETA Estimated Time of Arrival Alerts

GP Gross Profit

Return on Investment
ROI

COD Cash on Delivery

CAGR Compound Annual Growth

Rate
USD mn United States Dollar (in
million)
CY Current Year

AOV Average Order Value

TAM Total Addressable Market

ABSTRACT

This study will help us to understand the evolution of e-commerce in the form of Q- Commerce. The
definition is in its name—it is all about being quick. Speedy. Fast. Many have suggested that this is
the next iteration of last mile delivery, with much of the need— and innovation—being sparked
from the pandemic.

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 TABLE OF CONTENT

SR.NO PARTICULARS PAGE NO.

1 COVER PAGE 1

2 DECLARATION 2

3 CERTIFICATE 3

4 ACKNOWLEDGEMENT 4

5 LIST OF SYMBOLS 5

6 LIST OF ABBREVIATIONS 6

7 ABSTRACT 7

8 CHAPTER I: INTRODUCTION 9-21

9 CHAPTER II: LITERATURE REVIEW 22-24

10 CHAPTER III: RESEARCH 25-30
METHODOLOGY
11 CHAPTER IV: DATA ANALYSIS AND 31-34
INTERPRETATION

12 CHAPTER V: CONCLUSION 35- 38

13 REFERENCES 39-40

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CHAPTER I

INTRODUCTION
Fast and furious. These days, time-constraint net generation lives by this idea more than just the
reference to a well-known film series. Everything needs to be in a blink of an eye, be it coffee or
streaming media. The faster it occurs, the more it becomes the lifeblood.

Refining ways has always been a mainstay of the world at large and people have staunchly supported
it. Gone are the days when people used to drive to shops and marts, search for their needed item, and
wait for the bill. Now, within a few taps on the electronic gadget, items are delivered at footsteps
within a time span of 15-20 mins or even 10! That is the magic of Q-commerce which is certainly
detrimental to the existence of e-commerce.

As said earlier, people mainly Gen Z and millennials are the core players of Q-commerce. While
users braced the change with open arms, the industry saw its inevitable opportunities. Companies like
Blinkit, Instamart, Zepto, Dunzo, BigBasket are offering a variety of options such as gifting, makeup,
ready-to-eat items, baby care, pet care, meat, poultry, and beyond, to meet a broader spectrum of

consumer needs and preferences.

WHAT IS E-COMMERCE?

The rise in the power of tech has caused unmatched changes in all spheres of human life including
business in the face of e-commerce. Electronic Commerce means commercial transactions conducted
over a network using computers and telecommunications. According to the International Fiscal
Association, “ E-commerce means commercial transactions in which an order is placed electronically
and goods or services are delivered in tangible or electronic form.”

Is e-business and e-commerce the same?

The terms e-business and e-commerce are often used reciprocally. But e-business is a much wider
term than e-commerce. E-business includes not only e-commerce but also other electronically
conducted business transactions such as product development, production, inventory management,
accounting, finance and HR management. E-commerce simply covers a firm’s interactions with its
customers and suppliers over the Internet.

WHAT IS Q-COMMERCE?

A form of e-commerce,'Quick Commerce’ or ‘Q-Commerce’ is the one in which customer’s orders are
fulfilled by platforms within a few minutes of the order being placed, contrasting with the traditional
online platforms that take at least a day to deliver. Q-commerce takes advantage of the loophole that
approximately two-thirds of the total consumer purchases are spontaneous and are of low to moderate

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order value but it needs instant fulfilment. Quick Commerce platforms service this requirement
through either a network of self-operated dark- stores or a bunch of local offline retail partners.
Essentially, Quick Commerce platforms cater to consumer demand for ‘speed’ and ‘convenience’ of
delivery of items.
Q-COMMERCE VS ORGANISED SHOPPING CHANNELS

ORGANISED BRICK AND MORTAR Q- COMMERCE

1.Self service 10 mins- 2 hrs delivery time

2.Broad selection Curated selection that typically has high
rotation frequency
3.Superstore Local retailer or dark store or micro
fulfilment centre

4.Price and discounts matter most Speed and convenience matters

Currently, almost all platforms are focusing on developing solutions that meet the demand for
grocery and related purchases, given their significant importance in an individual's spending.
Therefore, in this report, we broadly categorise Quick Commerce as a new avenue for grocery
shopping, while acknowledging that over time, these platforms are likely to expand their offerings
to include other sectors such as healthcare, fashion, and electronics.

SCHEDULED E-GROCERY-

The term 'Scheduled e-grocery,' which primarily refers to traditional online grocery delivery services
that typically take a day or more for delivery has been overpowered by Q- commerce.

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QUICK COMMERCE WORKINGS

DARK STORES: CARRIERS OF DARK DELIVERIES

The timelines of Q-commerce are impressive but how is it possible to deliver so quickly? The secret
sauce is a network of dark stores across cities where these companies offer their services. A dark
store is essentially a retail facility resembling a mini-warehouse that houses goods to fulfil online
orders. But there is a minute difference: it is not open to the public. In fact, it is usually out of
bounds even for most employees, except those who actually work there.

For instance, Zepto, which has 200-250 dark stores in Mumbai, Delhi-NCR, Bengaluru, Hyderabad,
Pune, and Chennai, doesn’t allow delivery personnel to even peep into these mysterious structures. In
an interview, Aadit Palicha, Co-founder & CEO of Zepto said, “We don’t want our competition to
know what is happening inside our dark store,” .“We have optimised to a point that within 76 seconds
of an order being placed, the order is packed and made ready for pickup. So, the tech we use is a trade
secret, and we wouldn’t want anybody to get wind of it. The SOP is to not let anybody in. There are
tighter aisles, and SKUs of frequently ordered products are accessible.”

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BUSINESS MODEL IN Q-COMMERCE

On a broader level, five major business models can operate in the online grocery market as discussed.

1. Inventory model
2. Hyper-local model
3. Multi-vendor platform model
4. Revenue channels in the online grocery model
5. Omnichannel model

I. Inventory model

In this model, the products are purchased from authorised vendors and are stored in either
companyowned or leased warehouses . The warehouse is notified upon the placement of an order by
the customer. Subsequently, it prepares the order for the delivery partner to fulfil. The inventory
levels are decided as per the consumption/ordering pattern and the delivery lead times from
suppliers. The order delivery website or the app is integrated with the inventory levels to reflect the
real-time availability of products on the online platform

The inventory model is used when the demand is fluctuating, or when there is high seasonality in the
order patterns, or the products belong to a niche category. Also, this model is adopted by businesses
forecasting good business growth since it involves huge initial investment in leasing space, hiring
manpower, and setting up transportation systems. Big Basket uses this model to fulfil its last-mile
delivery.

II. Hyper-local model

The hyper-local delivery model is built upon the idea of using local and nearest vendors to service the
customer’s order. As the last mile is critical in the e-commerce domain, reaching out to customers in
the remotest areas is essential. This can be achieved by having retail grocery partners who are local
store owners. These store owners sell their products through the online platform of the e-commerce
firm. These firms create a marketplace website or app where customers can order groceries. After that,
the firms deliver these orders in the shortest possible time by using the network of local sellers by
routing the orders through the nearest offline shop or stores.

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This model is used for multiple reasons, such as delivering services at the fastest rate and increasing
the reach of the business to compete in the e-commerce grocery market. It eliminates the need for
quick-commerce companies to own warehouses and manage inventory operations. Dunzo uses the
hyperlocal delivery model. Also, startups like Blowhorn, Shadowfax, Wefast, Grab, and Pidge use
the hyperlocal delivery model.
III. Multi-vendor platform Model

There are multiple vendors operating a digital storefront in this model. The inventory in the
multivendor platform model is not stored in a single warehouse but is handled by multiple vendors.
Once the customer puts an order on the firm’s website or app, the order gets diverted to the
respective vendor . The transportation is planned, and the parts are picked and delivered by the
ecommerce firm in the shortest time.

In this model, the e-commerce firms get full control over vendors and can earn a certain percentage
of commission through these vendors without investing in inventory. Also, the product range that the
firms can offer through this model is higher than the self-controlled inventory model. Swiggy
Instamart and Amazon Fresh leverage this model to fulfil their orders. They have partnered with
third-party sellers and restaurants to deliver products and services quickly.

IV. Multi-revenue channel model

The multi-revenue channel model differs from the models discussed above. The company following
this model provides a platform where sellers can list their products after payment of a
predetermined commission to the platform owners. Also, the platform owners can charge a fee per
order from the subscribers or vendors

V. Omni-channel model

This model consists of brick-and-mortar stores, online platforms, distribution and storage centres,
the sales team in stores, websites, and mobile applications. The customer can use any of the modes
to make a purchase. It allows the customer to either purchase online or visit the store and make a
purchase after a physical inspection.

Bigbasket has recently started the omnichannel model. It has started small local grocery shops for
daily needs in selected metro cities. Also, it is installing vending machines for essential grocery
items under the brand name of BBinstant at various localities to increase its reach and accessibility.

FEATURES OF Q-COMMERCE

1. Outstanding Customer Service

Delivery speed, delivery efficiency, and customer experience are Q-commerce's top three
priorities. Because of how quickly and efficiently these companies deliver their items, customers
save money and time by avoiding the difficulties of visiting the market. Because everything can
be delivered to a customer's door in a matter of minutes, greatly enhancing their experience.

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2. Unique Selling Propositions

By providing an affordable last-mile delivery option, Q-commerce created a new market. Businesses
can now compete not just with online retailers but also with local marketplaces since they can offer
customers more convenience than their rivals at a lower cost. Thanks to this quick delivery system,
these companies have been able to stand out as unique and competitive brands in the marketplace.

3. High Growth Potential

Q-commerce offers a chance for market expansion through the establishment of cloud stores across
multiple locations or countries. Moreover, these companies might potentially expand their offerings
beyond a limited range of products to encompass a variety of different services. Compared to
established eCommerce firms, startups can achieve this expansion far faster because they can
outsource delivery operations while still expanding their own business.

4. Many Delivery Options

Many last-mile delivery workers can find employment with Q-commerce companies. Despite using
an aggregator business model, it employs a number of delivery partners who can work according to
their schedules and earn additional revenue. There are currently plenty of work options available to
those who were unemployed and without a steady source of income in the past.

ADVANTAGES OF Q-COMMERCE

1. Top-Notch Customer Experience

Delivery efficiency, customer satisfaction, and delivery speeds are the main concerns of Q-
commerce.Customers save time and money by eliminating the inconvenience of physically visiting
the market thanks to the speed and efficiency with which these enterprises distribute their
products.Since everything can be delivered to clients' doorsteps in a matter of minutes, this
improves the customer experience.

2. Competitive Unique Selling Proposition

By offering the last mile delivery solution at a reasonable price, Qcommerce opened up a new
market.This has made it possible for businesses to compete not just with online retailers but also with
neighbourhood markets by providing their clients with greater convenience at a lower cost.These
brands have been able to make a name for themselves in the industry by being distinctive and
competitive thanks to this rapid delivery technique.
3. Opportunity For Delivery Partners

Many last-mile delivery workers have job prospects offered by the q-commerce giants.It has multiple
delivery partners that it employs, who can work around their schedules and make extra money, even

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when it operates on an aggregator business model.Many people who previously lacked a steady
source of income or were unemployed now have more alternatives for employment.

4. Greater Potential For Growth

Q-commerce presents a chance for market expansion through the establishment of cloud stores in
several cities or nations.Furthermore, these firms have the potential to grow their business model
over time to include a variety of additional services in addition to the delivery of a restricted number
of goods. Compared to typical e-commerce enterprises, these startups can grow significantly quicker
because they can outsource delivery operations while growing their own business.

DISADVANTAGES OF Q-COMMERCE

1. High Startup Operational Costs

Delivery operations for Q-commerce have a higher starting cost since these businesses must supply
the facilities and infrastructure needed for last-mile delivery.This entails establishing a warehouse
where they keep their merchandise, selecting and educating delivery partners, and providing these
partners with the equipment they need to transport items.Low margin markets are a challenging arena
for q-commerce firms to compete due to the high expenses involved in such deliveries.

2. Risks To Existing Local Economy

Businesses can lessen or perhaps completely do away with the requirement for local marketplaces by
using the q-commerce delivery model.People might find it more convenient to buy their daily
necessities online rather than making the trip to the local market, which could be detrimental to
already established local companies.Furthermore, a decline in traffic at these neighbourhood markets
may have an effect on the local economy as a whole.

3. Security:

The security of Q-commerce websites is still a mystery. Because people are afraid to submit their
credit card information, q-commerce suffers from a lack of clients due to the fact that not all software
is as safe as it first appears. Every order that is placed puts drivers' and customers' physical security
at risk. A single event that results in personal injury is all it takes to have a negative impact on the
qcommerce sector.
4. Traffic and accidents

The rise in traffic and accidents on the roads is a drawback of q-commerce. Different orders must be
picked up by multiple drivers, who must deliver them as quickly as feasible. With more drivers, there
is more traffic on the highways and in the stores. Drivers that are rushing to get to their customers
end up driving recklessly, which causes problems for other motorists and an increase in traffic
accidents.

CHALLENGES FACED BY Q-COMMERCE-

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1.Q-Commerce challenges for logistics
Logistics present the largest obstacle to the introduction of rapid commerce. Q-commerce delivery
times can be as short as ten minutes in urban areas, thus the kind of big central warehouse that is
essential to traditional retail is not an option. Rather, the difficulty lies in blending a number of
discrete little businesses, sometimes referred to as "dark stores," into the cityscape. These spaces are
typically rented. Quick Commerce requires an army of staff to process, pick, and deliver orders in a
short amount of time, as if the rental overheads weren't enough. You must fulfil your commitment to
deliver items within a short period of time; you cannot afford to wait for a driver to deliver twenty
other packages first.

2. The challenge of low profit margins in q-commerce

While the ordinary customer is neither prepared to pay more for online purchases than in- store, nor
is he or she willing to pay more for faster delivery, these two factors—warehousing and manpower—
create relatively significant expenses. This indicates that the quick commerce margins are rather
modest when compared to traditional online grocery and meal delivery services. The above graphic
shows the true precision of the calculations. For example, a driver would need to handle six
deliveries in one hour to make up for his take- home pay if the rapid commerce provider Gorillas
charged a
€1.80 delivery cost. You should
not anticipate maintaining this rate over time. From the tiny profit that remains, the company must
then pay for all additional overheads, such as supplementary salary costs,

3. The challenge of acceptance in q-commerce

Goods must be kept close to a customer in order to supply them at the necessary pace. Through a
number of modest, neighbourhood delivery hubs known as "dark stores," Q- commerce does this.
The term "blacked-out windows" refers to the fact that these are typically apartments or commercial
spaces. These strategically placed micro warehouses are the lifeblood of rapid commerce, allowing
for such rapid delivery of goods to final consumers. The strategic placement of an entity within a
delivery area can play a pivotal role in the triumph of a rapid commerce venture. Dark store
distribution and networking are optimised through the application of artificial intelligence and

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 machine learning, which provides insights into shopping volume and delivery routes. But dimly lit
establishments in residential regions.

4. The challenge of working conditions in q-commerce

Reports of high levels of stress, unfavourable working conditions, and low or nonexistent pay further
damage the perception of delivery services as trendy, positive workplaces. It is challenging to
comprehend how profitability and providing enough payment and social security for the local
population can coexist with such low margins. One of the top delivery services in Germany, Gorillas,
has focused mostly on quick expansion up to now in order to take the lead in the market from the
competition. They have a long-term perspective when examining profitability. Gorillas can afford to
do this because they are among the most well- funded German unicorn start-ups ever, but the
longterm question is whether or not low margins and being in the black should coexist.

NEED FOR Q-COMMERCE

The service of e-commerce has been a boon to customers wherein they are exposed to a vast variety
of diverse quality goods at best possible prices. But the introduction of Q- commerce models have
changed the consumer’s purchasing experience compared to offline channels. The principle concept
of this type of commerce is bulk pick-up from far-off locations and bulk-drop within a large delivery
radius.
However, after the hit of Covid-19 pandemic, consumer expectations evolved due to restrictions or
reluctance to venture out. Consumers began to explore online channels even for purchases that
required instant fulfilment. This led to the emergence of Quick Commerce platforms, who promised
to deliver high-in demand and high rotation products (mainly related to grocery) within a few
minutes of order placement.
Top 5 Quick Commerce Brands In India

1. Zepto

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Zepto began offering its services in April 2021 and promises to deliver groceries, toiletries,
household necessities, baby care items, and more in less than ten minutes. Eight minutes and forty
seconds is the average delivery time (estimated).

Cities covered: Bangalore, Mumbai, Delhi, Chennai, Hyderabad, and Pune are among the cities
covered.

Their Approaches + Return on Investment When Using the Quick Commerce Business Model:

With 2,500 orders completed daily, they have 100 micro-warehouses that can fulfil deliveries in
under ten minutes. They are able to overcome challenges like busy highways, last-mile connection,
and the number of deliveries as a result.

A remarkable customer experience is created by Zepto App features including live order tracking,
fast pick-up, cashless payment, digital wallets, geo-fencing with ETA notifications, and SMS
verification for pickup and delivery.

With a $10 billion valuation, the Q-commerce delivery concept by itself generated millions of dollars
for them. Their yearly grocery deliveries are increasing at a rate of 200%.
2. BlinkIt

Grofers, the company's previous name, was relaunched as Blinkit with the goal of delivering
consumer items in ten to twenty minutes. At the moment, 14 cities are served by it.

Cities Covered: Agra, Ahmedabad, Bengaluru, Chandigarh, Chennai, Delhi-NCR,

Hyderabad, Jaipur, Kolkata, Mohali, Mumbai, Pune, UP-NCR.

Their Strategies + ROI Of Adopting Quick Commerce Business Model:

Currently, Blinkit has over a million weekly shoppers. Weekly retention on average is roughly 50%.
This indicates that 50% of consumers return to shop.They have 250 micro warehouses and
neighbourhood kiranas that serve each covered area to ensure that supplies never run out.With
generous payouts, they have teamed with 14,000–15,000 different delivery partners.

3. Dunzo Daily
In 35–40 minutes, for a minimum delivery cost, Dunzo Daily, an Indian company that specialises in
rapid commerce, provides household goods, food, medications, pet supplies, health and wellness,
presents, bike rides, pick-up and drop services, laundry delivery, and other items.

Cities Covered: Gurgaon, Pune, Chennai, Mumbai and Hyderabad, Bangalore, Delhi &
Hyderabad.

Their Strategies + ROI of adopting Quick Commerce Business Model

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To keep an eye on delivery boys and girls and give them orders, they developed the "Dunzo Delivery
Partner App."With its platform, it leverages artificial intelligence to estimate demand more
accurately, make smarter judgments about inventory, and streamline supply chain processes.Several
of the app's features that maintain users' satisfaction and loyalty include: customers' real-time GPS
location monitoring to follow delivery lads offers widely used payment methods such as credit/debit
cards, online banking, UPI, etc. Notify customers with push notifications about upcoming sales,
exclusive discounts, loyalty programs, payment confirmations, delivery statuses, and other relevant
information.Prioritise obtaining ratings and reviews.Focusing on supply chain management and
providing outstanding customer service, it had 40x growth in 2020–21. Every month, they have been
delivering two million orders.
4. Swiggy Instamart

With a rapid commerce business model, Swiggy Instamart debuted in August 2020 and offers grocery
delivery services to consumers in 18 cities in 45 minutes or less. It currently handles one million
orders every week.

Cities Covered: Bangalore, Delhi-NCR, Hyderabad, Mumbai, Chennai & Pune

Their Strategies + ROI Of Adopting Quick Commerce:

Swiggy's primary resources include neighbourhood stores and eateries, technology, a payment
system, and delivery services.They have a partnership with Fast Despatch Logistics, a last-mile
delivery service provider, for fleet management. It worked together with Hero Lectro Cargo (HLC),
an electric bike manufacturer, to transport orders via e-bikes.
They took advantage of underground storefronts run by independent vendors to facilitate
lightningfast deliveries.Customers may also use a variety of payment options on the Swiggy app,
including COD, debit cards, credit cards, net banking, and mobile wallets.
They include features on their app such as live order tracking, auto-detection of location, chat/call
support, coupons, and more to provide an amazing client experience.

5. BigBasket

Like other fast-fashion firms, Bigbasket is building a network of "dark stores" and employing cutting-
edge technology to provide same-day delivery.

Cities Covered: Serves 40+ cities — DelhiNCR, Bangalore, Visakhapatnam, Surat, Patna, Indore,
Chandigarh, Jaipur, Hyderabad, Mumbai, Pune, Chennai, and many others.

Their Strategies + ROI Of Adopting Quick Commerce:

Customers can enjoy features like numerous payment ways, order delivery scheduling, a 3- step easy
checkout process, discounts and vouchers, BB Star membership, and email and push updates
regarding the progress of their orders by using the BigBasket App.
For the purpose of acquiring merchandise, they use third-party kirana stores and warehouses located
in various cities. in order for them to promptly supply fresh goods to clients.For marketing and
revenue creation, they have also introduced supermarket products under their private brands.

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 CHAPTER II:
LITERATURE REVIEW
1.G Ranjekar, D Roy - 2023 - iima.ac.in- In India, e-commerce has grown exponentially during
the past ten years. The widespread availability of the internet has led to a shift in customer behaviour,
which has created a plethora of online sales opportunities for vendors and entrepreneurs. Due to
social distancing practices and frequent, strict lockdowns brought on by the COVID-19 epidemic,
grocery shopping has become more and more online. The rapid expansion of the industry is
indicative of its dynamic and ever-changing nature. The industry has been thoroughly reviewed in
this article, which also includes the industry's basic operating model and a variety of business models
employed by different industry players. Automating dark stores is essential to increasing the
productivity and competitiveness of the company. The sector must also overcome long-term obstacles
to ensure that its operations are environmentally, socially, and economically sustainable.

2. AE Setiyono, C Chandrawati, Interdisciplinary 2023 - After traditional retail and online

sales, quick commerce is the third generation of business models. It is now very appealing and has
enormous market potential.The aim of this study is to examine how customer happiness and
eloyalty of Indonesian q-commerce customers are affected by the quality of e-services.

3. L Al-Muani, M Al-Momani, A Amayreh- Uncertain Supply 2024 - This study examined

the relationship between consumer trust, satisfaction, and loyalty and the quality of policy and
logistical services in Jordan's fast commerce market. It specifically looked at the disparities in

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generational characteristics between Gen Z and Gen Y customers. Customer satisfaction was shown
to be highly impacted by the logistics service quality (human contact quality, shipment condition,
product availability, timely product delivery, and
order accuracy), with order accuracy having the most impact among 719 active Q-commerce users
surveyed. Furthermore, addressing order discrepancies and cash on delivery had a substantial
negative impact on customer trust. Lastly, although their proportional relevance varied among
generations in multigroup study, customer satisfaction and trust have an impact on customer loyalty.
Delivery speed is more important to Gen Z than direct communication with delivery staff.

4.M Schorung , 2023 - The adoption of new technology, the entry of new players who have
increased the complexity and dynamic nature of the industry, and the creation of new logistical
capabilities (dark stores, micro-hubs) have all contributed to the shift to food e- commerce. This
new phase in the development of instantaneous deliveries—which currently encompasses the whole
food and online shopping market—is represented by the rapid commerce sector. This study
examines the last mile organisation, partnerships with large-scale distribution, logistics micro-hubs
(dark stores), and other aspects of the quick commerce supply chain. It also emphasises how
heavily dark stores rely on transportation,
both in terms of vehicle movements and delivery flows. The opening of dark stores in crowded cities
(such as Paris, London, and New

5.A Harter, L Stitch, M Spann - Journal of Service Research, 2024 - "Quick commerce"
describes fulfilling customers' urgent demands by sending them things they've ordered online in a
matter of minutes. Despite the fact that speed is therefore fundamentally significant, nothing is
known about the potential effects of delivery timeframes that are not met—whether they are early or
late—on repurchase behaviour. The authors use a sizable customer-level transaction data set from a
Western European food delivery service along with a controlled online experiment to examine the
impact of delivery time discrepancies on repurchase behaviour. The findings indicate that
interpurchase periods are increased (decreased) by late or early delivery; these effects become less
pronounced with greater variances. Additionally, the findings indicate that repurchase behaviour is
more strongly impacted by late deliveries than by early deliveries of comparable size. Customer
satisfaction is established as the psychological process that underlies and mediates the effect of the
controlled online experiment.

6. BMGM Serrenho - 2022- A case study methodology was used for the current study, which
aims to identify potential changes as well as comprehend and characterise the key elements of the
company's delivery process. Interviews combined with document analysis were the methods used
to acquire the data. This made it possible to have a better understanding of the general business
procedures, operations, and technology utilised. It also made it possible to identify some
recommendations for future enhancements that would address the primary issues raised by the
study. The majority of the recommended enhancements focus on methods for boosting productivity
and speed, such as introducing a routing algorithm and making a few adjustments to current
technologies to lessen problems.

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 CHAPTER III
Research Methodology

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Research methodology simply refers to the practical “how” of any given piece of research.
More specifically, it’s about how a researcher systematically designs a study to ensure valid
and reliable results that address the research aims and objectives.

In a dissertation, thesis, academic journal, article, you will find a research methodology
chapter (or section) which covers the aspects mentioned above. Importantly, a good
methodology chapter in a dissertation or thesis explains not just what methodological choices
were made but also explains why they were made.

In other words, the methodology chapters should justify the design choices, by showing that
the chosen methods and techniques are the best fit for the research aims and objectives, and
will provide valid and reliable results.A good research methodology provides scientifically
sound findings, whereas a poor methodology doesn’t .

Sources of Data
The sources of data can be classified into two types: statistical and non-statistical. Statistical sources
refer to data that is gathered for some official purposes, incorporate censuses, andofficially
administered surveys. Non-statistical sources refer to the collection of data for other administrative
purposes or for the private sector. There are different sources of data and some are listed below:

1. Internal Sources
When data is collected from reports and records of the organisation itself, they are known as the
internal sources.
For example, a company publishes its annual report on profit and loss, total sales,loans,wages, etc.

2. External Sources
When data is collected from sources outside the organisation, they are known as the external
sources.
For example, if a tour and travel company obtains information on Karnataka tourism from
Karnataka Transport Corporation, it would be known as an external source of data.

Types of data:

A) Primary Data

Primarydatameansfirst-handinformationcollectedbyaninvestigator. It was collected for the first time.

It is original and more reliable.
For example,the population census conducted by the government of India every ten years is primary
data.

B) Secondary Data

Secondary data refers to second-hand information. It's not originally collected and rather obtained
from already published or unpublished sources.

For example,the address of a person taken from the telephone directory or the phone number of a
company taken from Just Dial are secondary data.

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WHAT IS PRIMARY DATA?SOURCES,ADVANTAGES,AND DISADVANTAGES
Primary data is information collected directly from first hand experience. This is the information
that you gather for the purpose of a particular research project.Primary data collection is a direct
approach that is tailored to specific company needs. It can be a long process but does provide
important first-hand information in many business cases.Primary Data is the original data– from the
first source.It is like raw material.

Advantage of primary data

1. Resolve specific research issues

Performing your own research allows you to address and resolve issues specific to your own
business situation.The collected information is the exact information that the researcher wants
to know and he reports it in a way that benefits the specific situation in an organisation.
Marketers and researchers are asked to find data regarding specific markets
insteadoffindingdataforthemassmarket. This is the main difference from secondary data.

2. Better Accuracy

Primary data is much more accurate because it is directly collected from a given population.

3.A Higher Level of control

Themar etercancontrol easily the research design and method.In addition,you have higher level of
control over how the information is gathered.

4. Up-to-date information

The primary market research is a great source of latest stand up-to-date information as you collect it
directly from the field in real-time. Usually, secondary data is not so up to date and recent.

.5. You're The Owner Of The Information

Information collected by the researcher is their own and is typically not shared with others.
Thus, the information can remain hidden from other current and potential competitors.

Disadvantages of Primary Data:

1.More Expensive

It could be very expensive to obtain primary data collection methods because the marketerthe

1. Time-consuming

It is a matter of a lot of time to conduct the research from the beginning to the
end.Often it takes much longer in comparison with the time needed to collect

23
secondary data. the research team has to start from the beginning. It means they have
to follow the whole study procedure,organising materials, process etc.

2. Can have a lot of limits

Primary data is limited to the specific time, palace or number of participants etc. To compare,
secondary data can come from a variety of sources to give more detail.

3. .Always Possible

For example,many researches can be just too large to be performed by your company

WHAT IS SECONDARY DATA?SOURCES,ADVANTAGES,AND DISADVANTAGES.

Secondary data is the data that has been already collected for another purpose but has some
relevance to your research needs. In addition, the data is collected by someone else instead of
the researcher himself.Secondary data is second-hand information. It is not used for the first
time. That is why it is called secondary.

Secondary data sources provide valuable interpretation and analysis on primary sources. They
may explain in detail primary sources and often use them to support a specific thesis or a
point of view.

Advantages of SecondaryData:

1. Ease of Access

The secondary data sources are very easy to access. The internet world changed how
secondary research exists. Nowadays, you have so much information available just by the
clicking of the mouse in front of the computer.

2. Low Cost Or Free

The majority of secondary sources are absolutely free for very low costs. It saves not only your
money but your efforts. In comparison with primary research where you have to design and conduct
a whole primary study process from the beginning, secondary research allows you to gather data
without having to put any money on the table.

3. Time-saving
As the above advantages suggest, you can perform secondary research in no time.Sometimes it is a
matter of a few Google searches to find an incredible source of information.

4. Generating new insights and understandings from previous analysis

Reanalyzing old data can bring unexpected new understanding and point of views or even
new relevant conclusions.

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5. Larger Sample Size
Big data sets often use a larger sample than those that can be gathered by primary data collection.
Larger samples mean that the final inference becomes much more straightforward.

Disadvantages of Secondary data-

1. Might be not specific to needs

Secondary data is not specific to the researcher’s needs due to the fact that it was collected in the past
for another reason. That is why the secondary data might be unreliable for your current needs.
Secondary data sources can give you a huge amount of information, but quantity does not always
mean appropriateness.

2. You have no control over data quality

The secondary data might lack quality. The source of the information may be questionable,
especially when you gather the data via the Internet. As you rely on secondary data for your
datadriven decision-making, you must evaluate the reliability of the information by finding out
how the information was collected and analysed.

3. Biasness
As the secondary data is collected by someone else than you, typically the data is biassed in favour of
the person who gathered it. This might not cover your requirements as a researcher or marketer.

4. Not timely
Secondary data is collected in the past which means it might be out-of-date. This issue can be crucial
in many different situations.
5. You are not the owner of the information
Generally, secondary data is not collected specifically for your company. Instead, it is available to
many companies and people either for free or for a little fee. So, this is not exactly a “competitive
advantage” for you. Your current and potential competitors also have access to the data.

METHOD USED IN THIS PROJECT:

This research includes a secondary data method to analyse the market growth and future of Quick
Commerce. The data collected from this method is from reports, newspapers, magazines from reputed
institutions.

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 CHAPTER IV
DATA ANALYSIS AND INTERPRETATION

26
 India’s quick commerce market is all set with a 10-15X growth by 2025

Redseer estimates the Grocery market size in India was worth USD 620bn in CY21. It is estimated
to report a CAGR of 8% over the next four years to reach USD 850bn+ by CY25. Despite growing
penetration of organised channels, even today the unorganised segment accounts for more than 95%
of this market. However, going forward, growth is likely to be driven by organised channels such as
Modern retail and e-grocery due to growing consumer demand for packaged, high-quality products;
wider assortment; enhanced shopping experience; and continuing channel penetration in smaller
towns and cities.

Quick Commerce leading to a higher NPS

Quick Commerce platforms tend to have very high customer stickiness. This is because

1) there are a wide range of use-cases, several of them very high frequency ones,

2) assortment offered is generally non-discretionary in nature,

3) changing consumer habits from planned/stock-up purchases to unplanned/impulsive purchases,

4) availability of discounts on MRP of certain products,

5) loyalty programmes.
Globally, platforms that offer instant deliveries (of 10-30 mins) tend to have much higher NPS than
those offering lengthier delivery times. Redseer analysis suggests Quick Commerce players in India

27
 have a better NPS than Scheduled e-grocery players. This is likely because the former enhances the
shopping experience of customers on the back of their ability to offer instant product selection and
delivery.

HIGH COMPETITIVE INTENSITY

The Covid-19 pandemic accelerated demand for online grocery not only in India but also globally. It
also led to the evolution of consumer needs due to restrictions on movement and consumer reluctance
to venture out. As a result, consumer dependence for purchases that would typically be fulfilled by
offline channels (such as unplanned purchases, indulgence purchases or low shelf-life (typically
fresh) shifted towards platforms offering on-demand services. In view of the large addressable
market, and a fundamental shift in consumer behaviour, there has been a surge in the number of
platforms offering on-demand services. As shown in the exhibit below, the Quick Commerce market
in India is now very crowded following the entry of some very large corporate houses as well.

QUICK BASED IN KEY INVESTORS FUNDS CURRENT

COMMER RAISED COMPANY
CE START (USD mn) VALUATIO
N (USD mn)

Swiggy Aug'20 Bengaluru Prosus, Softbank 700** NA

Instamart
Zepto Apr'21 Mumbai Kaiser Permanente Ventures, 361 900
Nexus Venture Partners, Glade
Brook Capital, Y Combinator

Dunzo Jul'21 Bengaluru Reliance Retail, Google, Lightbox 240** 764

Daily

Blinkit Aug'21 Gurgaon Zomato, Softbank, Tiger 250** 1,000

(Grofers) Global,Sequoia

Flipkart Feb'22 NA Flipkart (Walmart) NA NA

Quick

BigBasket Mar'22 Bengaluru BigBasket (Tata Digital NA NA

Now
** funds raised purely for expansion of Quick Commerce business

WAY FORWARD FOR QUICK COMMERCE:

28
Quick commerce players can up their game by going beyond just grocery and extend their offerings
to other consumables, electronics, newspapers, and more. Further, it is imperative that quick
commerce extends beyond just metros. Private label play to boost unit economics and margin, and
ride safety to win the trust of riders and increase retention are the other key areas that need to be
addressed largely.

To better understand what matters to the consumers and how they are using some of these online
grocery and quick commerce platforms, LocalCircles, a reputed social platform, conducted a national
survey and a pilot consumer rating study in Noida. The survey focused on what matters to consumers
when shopping for groceries online and to understand the most important factors for consumers while
shopping online. Further, the exercise tried to
understand what percentage of households have started using qcommerce and for what category of
items. The survey and the pilot study received over 30,000 responses from households consumers
residing in 272 districts of India. 61% respondents were men while 39% were women. 49%
respondents were from tier 1, 33% from tier 2 and18% from tier 3,4 and rural districts

86% of those who buy groceries online say top criteria for them are selection, availability and value;
for 8% it is fast delivery

The first question in the survey asked consumers about the most important factors for them to shop
for groceries online among availability, selection, prices and delivery time. In response, 21% of
consumers said it is “selection and availability focus”, and 8% said it is “fast delivery focus”.
Breaking down the poll, 28% said,” selection and availability is primary and delivery time and value
is secondary” to them. 16% said it “ value is primary and selection and availability and delivery time
is secondary”. 6% of consumers couldn’t say. On an aggregate babis, 86% of those who buy
groceries say that top criteria for them is selection, availability and value while 8% say it's fast
delivery.

29
 CHAPTER V
CONCLUSION

30
Since the 1st phase of the pandemic in March 2020, many households have taken to eCommerce sites
and apps for all types of shopping needs, getting what they need delivered at home and minimising
contact with others, The emergence of quick commerce has changed the on-demand delivery
landscape by reducing delivery time from 12-24 hours to 10-60 minutes. While traditional online
grocery suppliers now include Big Basket, Amazon Fresh and Jio Mart, the quick commerce or fast
delivery services are being offered by Swiggy Instamart, BlinkIt, Flipkart Quick, a new platform
Zepto.

The majority of Q-commerce orders are motivated by impulsive buys, which lead to much lower
order values ranging from INR 200 to INR 300. For Q-commerce players, it is not possible to club
orders due to the promise of the speed of delivery. Even with the establishment of dark stores in the
neighbourhood, the average cost of delivery in metros is around INR 60-80. Other costs include dark
store operations, supply chain, picking, and packing costs. The current average order value of INR
300 is hardly enough to make up for the cost of delivery in Q-commerce operations. This issue poses
an existential question about Q-commerce players’ viability and operations. Indian retail has a
lowcost ecosystem with many small entrepreneurs providing home delivery of milk, flowers, tender
coconut, bread and eggs- products that households seek daily. These small entrepreneurs are local and
typically depend on delivering these daily essentials for their livelihood. Q-commerce players can
bever match or beat these players on the delivery cost. Thus, free delivery in Q- commerce is neither
viable nor sustainable.

Contrasting to this, Redseer estimates that the addressable TAM for Quick Commerce platforms in
value terms was ~USD 45bn in CY21, i.e., >7% of the total grocery market, assuming the service
is likely to appeal only to middle-high income households residing in Metro & Tier-1 cities. It also
estimates that Delhi NCR, Mumbai and Bangalore together
accounted for ~70% of the total Quick Commerce orders generated in CY21. Key growth drivers are
new customer additions, improvement in repeat order frequency of existing consumers, higher
AOVs, expansion in newer cities, and broader delivery coverage in existing cities.

Quick Commerce players are presently focused on customer acquisition and retention. They are also
deploying significant financial resources on expanding their network of demand centres (dark stores),
marketing and branding. This is leading to significant cash-burn across the industry. High
competitive intensity is not helping either. To improve profitability and build a self-sustainable
business model, these platforms will have to pull multiple levers such as improve AOVs, drive order
mix change, create new revenue streams, optimise supply chain, and lower last mile-delivery costs.
We also expect an intense phase of consolidation over the next few years, similar to the one
witnessed by food-techs, which would eventually lead to an oligopolistic market and improve
profitability for survivors.

Quick Commerce platforms are essentially trying to disrupt the unorganised grocery market (mainly
the neighbourhood kirana stores) in large cities. Their broader strategy seems to focus on driving the
message that shopping for groceries through their online platforms is far more convenient than
having to take physical trips to the neighbourhood grocery/convenience stores. By leveraging their
scale, platforms can also extract better margins from brands/manufacturers/distributors, a percentage
of which then can be shared with the customers to create top-of-the-mind awareness or improve
customer stickiness.

31
Moreover, some platforms are providing more flexibility to consumers by giving them the option
to decide their own delivery schedule. This messaging of speed and convenience essentially
addresses the pain-points of urban families having busy lifestyles and nuclear families. High
NPS scores for Quick Commerce players compared to offline channel and scheduled delivery
players are indicative of the growing consumer satisfaction with the channel.

CHAPTER VI
BIBLIOGRAPHY

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 REFERENCES

● Ranjekar, G., & Roy, D. (2023). Rise of quick commerce in India: business models and
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%20Ranjekar%20%26%20Roy.pdf

● Al-Muani, L., Al-Momani, M., Amayreh, A., Aladwan, S., & Al-Rahmi, W. (2024). The effect of
logistics and policy service quality on customer trust, satisfaction, and loyalty in quick commerce:
A multigroup analysis of generation Y and generation Z. Uncertain Supply Chain Management,
12(3), 1417-1432. http://m.growingscience.com/uscm/Vol12/uscm_2024_80.pdf

● Schorung, M. (2023). Quick commerce: will the disruption of the food retail industry
happen? Investigating the quick commerce supply chain and the impacts of dark stores
(Doctoral dissertation, Université Gustave Eiffel). https://shs.hal.science/halshs-
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● Harter, A., Stich, L., & Spann, M. (2024). The Effect of Delivery Time on Repurchase Behaviour
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● Rai, H. B., Mariquivoi, J., Schorung, M., & Dablanc, L. (2023). Dark stores in the city of light:

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 Geographical and transportation impacts of ‘quick commerce’in Paris. Research in
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● Rau, J., Altenburg, L., & Ghezzi, A. I. (2023, April). How the quick commerce business model
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