The Viability of Quick Commerce

The rise of quick commerce companies has generated both excitement and skepticism regarding their sustainability in the market. These companies, which deliver groceries and household items in mere minutes, are backed by significant venture capital investments, with Zepto reportedly close to securing $340 million. Despite the impressive growth statistics, such as a gross order value of over 4900 crores for Blinkit, questions remain about the long-term profitability of this sector, as current business models show no global profitability. Economically, quick commerce relies heavily on a network of dark stores, which are crucial for maximizing delivery efficiency, yet the sustainability of delivering low-cost items quickly poses a significant challenge to profitability and could signal a potential bubble in this emerging market segment.