4 Min Read
Quick commerce has surged across India’s urban centres in recent years, with leaders like Swiggy’s Instamart, Zomato’s Blinkit, and Zepto investing heavily in ultra-fast delivery models. This trend, catering to the increasing demand for instant convenience, has reshaped consumer expectations and led to rapid sector growth.
In an interaction with CNBC-TV18's Shereen Bhan, Sumer Juneja, Managing Partner and Head of EMEA & India Investing at SoftBank, shared insights into the future of India’s quick commerce landscape and the potential for more players to enter the field.
Juneja observed that India is an ideal market for quick commerce. The lack of accessible convenience stores like 7-Eleven and low delivery costs position the country as fertile ground for this model.
“The question often gets asked: it’s not worked anywhere else in the world, so why will it work in India? We don’t have modern retail, we don’t have convenience retail … urban infrastructure is not ideal for you to go out and pick up stuff on your way back from work. You put those dynamics together, you also have a much lower delivery cost vis a vis what you can charge the customer. And if you put those dynamics together, it becomes a strong proposition,” he said, explaining why the model could thrive in India while struggling in other markets.
Highlighting the role of India’s growing affluence and urbanisation in driving demand for quick commerce, Juneja said, “India is only becoming richer, more urbanised, and the product market fit [for quick commerce] is only getting stronger.”
Discussing the competitive landscape, Juneja acknowledged the dominance of Swiggy, Zomato, and Zepto, while noting that other players are testing the waters, with BigBasket, for instance, exploring 10-minute delivery pilots.
Theoretically, he said, there is room for multiple competitors: “The TAM [total addressable market] is exceptionally big. We’re playing the grocery market, which is probably five to ten times the size of the food delivery market.”
However, Juneja cautioned that quick commerce is an exceptionally capital-intensive business that relies on advanced technology and well-developed logistics.
“It takes a lot of capital, and it takes an immense amount of execution, both on the ground and with very high-quality tech teams. A lot of people might enter, but very quickly, there’ll be only a couple who will actually be able to take advantage.”
Juneja also addressed the importance of execution, particularly as these companies scale operations beyond primary urban centres. Convincing a broader demographic to use these platforms, including those outside of tier-one cities, will be a challenge, he noted, while forging partnerships with FMCG brands to secure better margins will be crucial for these companies to improve profitability.
“You have to get the consumers to order more and more,” he said. “At a certain point, you will start capping out with your prime urban consumers, so you have to convince other people who are not double-income, working couples to also use the platform.”
Juneja acknowledged regulatory risks as another significant factor shaping the future of quick commerce. The government has raised concerns about fair practices in the sector, suggesting a need for a level playing field. Yet he appeared confident that regulation would not unfairly favour any one player.
“If you’re playing fair, if the regulation is not helping one particular company, and it’s equal for all, there will be a meeting of minds between the product market fit and the company and the regulator,” he explained. “This is not a question for India … any market which rapidly grows, the regulation and the market speed are not always in sync.”
The quick commerce sector’s influence on consumer expectations extends beyond grocery delivery, according to Juneja. “Consumer expectations are changing so rapidly … we’re just going to get spoiled further and further,” he said, pointing out that consumers are already moving beyond next-day e-commerce delivery.
In an interaction with CNBC-TV18's Shereen Bhan, Sumer Juneja, Managing Partner and Head of EMEA & India Investing at SoftBank, shared insights into the future of India’s quick commerce landscape and the potential for more players to enter the field.
Juneja observed that India is an ideal market for quick commerce. The lack of accessible convenience stores like 7-Eleven and low delivery costs position the country as fertile ground for this model.
“The question often gets asked: it’s not worked anywhere else in the world, so why will it work in India? We don’t have modern retail, we don’t have convenience retail … urban infrastructure is not ideal for you to go out and pick up stuff on your way back from work. You put those dynamics together, you also have a much lower delivery cost vis a vis what you can charge the customer. And if you put those dynamics together, it becomes a strong proposition,” he said, explaining why the model could thrive in India while struggling in other markets.
Highlighting the role of India’s growing affluence and urbanisation in driving demand for quick commerce, Juneja said, “India is only becoming richer, more urbanised, and the product market fit [for quick commerce] is only getting stronger.”
Discussing the competitive landscape, Juneja acknowledged the dominance of Swiggy, Zomato, and Zepto, while noting that other players are testing the waters, with BigBasket, for instance, exploring 10-minute delivery pilots.
Theoretically, he said, there is room for multiple competitors: “The TAM [total addressable market] is exceptionally big. We’re playing the grocery market, which is probably five to ten times the size of the food delivery market.”
However, Juneja cautioned that quick commerce is an exceptionally capital-intensive business that relies on advanced technology and well-developed logistics.
“It takes a lot of capital, and it takes an immense amount of execution, both on the ground and with very high-quality tech teams. A lot of people might enter, but very quickly, there’ll be only a couple who will actually be able to take advantage.”
Juneja also addressed the importance of execution, particularly as these companies scale operations beyond primary urban centres. Convincing a broader demographic to use these platforms, including those outside of tier-one cities, will be a challenge, he noted, while forging partnerships with FMCG brands to secure better margins will be crucial for these companies to improve profitability.
“You have to get the consumers to order more and more,” he said. “At a certain point, you will start capping out with your prime urban consumers, so you have to convince other people who are not double-income, working couples to also use the platform.”
Juneja acknowledged regulatory risks as another significant factor shaping the future of quick commerce. The government has raised concerns about fair practices in the sector, suggesting a need for a level playing field. Yet he appeared confident that regulation would not unfairly favour any one player.
“If you’re playing fair, if the regulation is not helping one particular company, and it’s equal for all, there will be a meeting of minds between the product market fit and the company and the regulator,” he explained. “This is not a question for India … any market which rapidly grows, the regulation and the market speed are not always in sync.”
The quick commerce sector’s influence on consumer expectations extends beyond grocery delivery, according to Juneja. “Consumer expectations are changing so rapidly … we’re just going to get spoiled further and further,” he said, pointing out that consumers are already moving beyond next-day e-commerce delivery.
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