If you’re scrolling through your phone right now, chances are you’ve used a 10-minute delivery service for groceries or essentials. And let’s be real—you probably switched between apps, hunting for the best price or the fastest ETA.
But while we, as consumers, compare discounts and delivery times, investors have a much bigger question: Which quick commerce player is best positioned to win the market?
With two major players—Blinkit (via Zomato) and Instamart (via Swiggy)—available for public market investors, this is more than just a battle of speed. It’s a race for market dominance, unit economics, and long-term profitability.
Yet, in this high-stakes war, not every player will survive. Some will thrive, some will bleed out, and eventually, the dust will settle. The real question is: when is the right time to place your bet?
Let’s “quickly” get to it.
The Story – How the Quick Commerce Game is Played
Quick commerce isn’t just a fancy extension of food delivery; it's an entirely different beast. The sector thrives in India for three key reasons:
A fragmented offline retail market with low penetration of organised grocery chains.
High population density, making hyperlocal deliveries feasible.
A discount-driven consumer base accustomed to deal-hunting.
Who’s Winning?
Currently, Blinkit leads with 40% market share, followed by Zepto at 30% and Swiggy’s Instamart at 20%, making up 90% of the total market. But here’s where it gets tricky: new entrants like Flipkart, Reliance, Tata, and Amazon are eager to grab a slice of the pie, turning a three-way contest into an all-out war.
What’s the Real Edge?
The winner in quick commerce isn’t just the one with the deepest pockets—it’s the one that best executes across five critical areas:
Capital & Funding: Money fuels expansion, but in India, all major players are well-capitalised. Blinkit raised Rs. 8,500 crore ($1 billion), Swiggy secured Rs. 11,300 crore ($1.4 billion), and Zepto raised Rs. 2,900 crore (~$350 million) in recent rounds. Capital is no longer a differentiator.
Tech & Automation: The backbone of quick commerce is the tech stack—inventory forecasting, real-time route optimisation, and seamless order fulfilment. All major players have invested in this, so differentiation will come from execution.
Dark Store Network: Blinkit currently operates 1000**+** dark stores, while Swiggy Instamart is aggressively expanding its presence in key cities.
Delivery Efficiency: Cutting delivery time from 10 minutes to 7 minutes may not seem like much, but in this business, every second counts.
Customer Loyalty & Retention: While discounting brings users in, retention is driven by seamless experiences and product availability.
What’s the Catch?
Despite the growth, quick commerce is still loss-making for all players.
Investors are betting on scale leading to profitability, but it’s a long road ahead.
Blinkit’s edge lies in first-mover advantage and aggressive expansion, but competition is heating up.
The Numbers – Breaking It Down
A side-by-side comparison of the key players shows how the quick commerce race is shaping up:
Metric | Blinkit (Zomato) | Instamart (Swiggy) | Zepto |
# of Dark Stores | 1,007 | 609 | 750-800+ |
AOV (Rs.) | 707 | 499 | 415+ |
Avg Daily Orders | 1.2 million | 800K+ | 900K+ |
CM Profit/Loss Per Order (Rs.) | +25 | -10 | Likely in losses |
Loyalty Program | None | Swiggy One | Zepto Pass |
App MAU Base | 34 million | 39 million | 36 million |
App DAU Base | 4.7 million | 6.7 million | 4.7 million |
Key Takeaways:
Blinkit leads in scale with the highest dark store count (1,007) and order volume (1.2M daily orders).
Zepto is growing fast, with 750-800+ dark stores, though it remains loss-making at the unit level.
Swiggy Instamart lags in scale but benefits from Swiggy One’s ecosystem and higher user engagement via the combined app.
Blinkit is the only profitable player per order (+Rs. 25 per order), while Instamart (-Rs. 10 per order) and Zepto are still in the red.
AOV (average order value) is the highest for Blinkit (Rs. 707), indicating premium customer spending.
This suggests that while Blinkit is ahead in execution and profitability, Swiggy and Zepto are aggressively closing the gap. With further expansion and cost optimisation, Instamart and Zepto could challenge Blinkit’s lead in the coming quarters.
The Valuation – How to Think About It
Unlike traditional businesses, quick commerce is still in the hyper-growth phase, making conventional valuation metrics like P/E ratios useless. Instead, investors look at:
Price-to-Sales (P/S) Ratio: Blinkit trades at 12x P/S, significantly higher than Swiggy’s 6x P/S, reflecting its dominant position.
Burn Rate vs. Market Share: How much cash a company burns relative to the market share it captures.
Long-Term Unit Economics: The path to profitability, which remains unclear for now.
So, should Blinkit trade at a premium? The market seems to think so. But whether it can justify that valuation in the long run depends on execution.
The “Quick” Wrap – Play the Long Game
Quick commerce is in a scale-first, profits-later phase, making it a high-risk, high-reward bet.
Blinkit leads the pack in market share and execution, but its premium valuation reflects that advantage.
Instamart is playing catch-up, backed by Swiggy’s food delivery ecosystem.
Zepto remains an aggressive challenger, while new entrants like Reliance and Flipkart could change the game altogether.
But here’s the catch—this is still a battlefield, and the war isn’t over. The correct strategy? Sometimes, the best move is to wait on the sidelines. Let the players fight it out, let the weaker ones fall, and let the winners prove their ability to sustain profitability.
A clear signal will emerge—either through industry consolidation or the exit of weaker players. That’s when valuations will stabilise, and the true winners will stand tall. Until then, enjoy the spectacle from the sidelines. The best investments are often made after the dust settles, not in the middle of the storm.
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