Quick Commerce Insider Reveals State of Market on UBS Call

An industry insider — who heads growth and strategy at one of the leading quick commerce companies — has told UBS that India’s quick commerce sector is consolidating around a few key players, each with distinct positioning: Blinkit offers wide assortment, Zepto is known for speed, and Swiggy benefits from first-mover advantage.

High customer retention rates of 50-60% weekly, bolstered by loyalty schemes, are creating significant barriers to new entrants. Several barriers to entry exists in the quick commerce space, including the need for distinct brand positioning, substantial initial investment for dark stores, and the challenge of converting existing e-commerce infrastructure to suit quick commerce operations, said the executive, which UBS didn’t name.

The sector’s economics are improving, with net take rates around 20% and potential for expansion in product margins and ad income. Delivery fees are likely to remain stable due to customer sensitivity, the executive argued. With 30% of costs being fixed, there’s substantial room for operating leverage as the business scales, pointing to a path to profitability for established players, the person said.