Many consumers are now opting for quick deliveries, with a reported 46% reduction in purchases from traditional kirana shops. This shift is putting pressure on e-commerce majors to match delivery speeds and price points and has triggered a price war in the home delivery space. Quick-commerce companies have successfully reduced the pricing premium they previously charged for instant deliveries, now offering competitive prices to attract customers.
The quick-commerce sector, expected to reach a market size of $40 billion by 2030 (up from $6.1 billion in 2024), is starting to encroach on traditional e-commerce platforms like Amazon and Flipkart. While e-commerce has typically been preferred for planned purchases, quick-commerce platforms are rapidly diversifying and are now targeting items traditionally dominated by larger e-commerce firms. The shift in consumer preferences toward instant deliveries for groceries and other fast-moving goods is intensifying the competition between these sectors. Quick-commerce companies are also disrupting Kirana shops and modern retail by offering competitive pricing and faster delivery.
The Swiggy IPO has been hailed as the most successful in its category in a decade, listing at a 5.6% premium to its issue price of Rs 390. It closed at Rs 455.95, a 17% increase over the IPO price, defying expectations of a weak debut, especially in a challenging market. With a market capitalization of Rs 1.02 lakh crore at the close, Swiggy’s listing reflects the growing prominence of the quick commerce sector, an emerging business that is rapidly attracting investment.
While this aggressive pricing strategy may not always be profitable in the short term, it is seen as a market acquisition cost to gain loyal customers, according to industry experts. As quick-commerce companies continue to expand their reach, e-commerce platforms are facing increased pressure to adapt by improving delivery times and pricing, further intensifying the competition in the retail space.
