India's Quick Commerce Market Shifts to Profit Focus

India’s quick commerce market is entering a new phase of maturity, transitioning from rapid expansion to profit-focused strategies.

Valued at $5.5 billion by 2025, the sector has grown rapidly but now faces investor pressure to improve unit economics. Players like Blinkit and Instamart are responding by slowing dark store expansion, adding service fees, and incentivizing larger orders through programs like Instamart’s “Maxxsaver.” Despite impressive YoY growth rates of 140 percent for Blinkit and 110 percent for Instamart, both have reported widening losses, underlining the high cost of logistics in the segment.

Key Highlights

• Blinkit and Instamart pivot from expansion to profit with improved unit economics and service fees.
• Zepto loses users to Blinkit amid service quality concerns; AOV and loyalty now drive retention.
• Quick commerce expands into personal care and fashion, transforming consumer shopping habits.

Companies are now prioritizing customer experience and retention as key differentiators. Between December 2024 and June 2025, Blinkit grew its daily active users from 5.5 million to 6.2 million, while Zepto’s DAUs declined to 4.9 million—partly attributed to dissatisfaction with pricing and service quality.

To increase average order value (AOV) and foster loyalty, platforms are introducing tiered discount programs like Zepto’s “Super Saver” for orders above Rs. 499. This strategy aligns with global e-commerce trends, where retention hinges on delivering consistent value, not just speed.

Also Read: Indian E-Commerce Market Projected to be worth $300B in 2030

Beyond groceries, quick commerce is expanding into personal care, electronics, and fashion. Personal care now leads in product listings on platforms like Blinkit, while the average order value has climbed to Rs. 615–635, indicating rising consumer trust and shifting shopping behaviors toward convenience-driven, multi-category purchases.

This evolution positions quick commerce as a serious retail contender, reshaping India’s broader consumption landscape.