Quick Commerce vs E-Commerce - The Need for Speed in Retail
The Morning Brief
Insights on QuickCommerce Business Model and Geographical Expansion
The key insight revolves around achieving product-market fit by delivering groceries in 10 minutes, catering to the buying habits of Indians who make small, frequent grocery purchases. QuickCommerce focuses on the top 40 cities where the majority of grocery spending occurs, aiming to build a multi-billion-dollar business there. While currently operational in 10 cities, the business model extends beyond metros to tier two and three cities due to better economics and growth potential driven by the lack of quality offline options in those areas. Geographies on the outskirts of major cities exhibit similar income and density dynamics to tier two cities, presenting higher profitability and growth rates. This highlights that success is not necessarily tied to affluence but rather the quality of offline options available to customers.
