The Indian quick commerce sector is rapidly expanding, with players like Blinkit, Swiggy Instamart, and Zepto competing against e-commerce giants such as BigBasket, DMart, JioMart, and Amazon Fresh.
Zomato's Blinkit is a top contender in the market, well-positioned for growth, particularly in NCR, said JPMorgan in its report on Sunday. Blinkit's focus on SKU availability and competitive pricing continues to drive profitability, even as subsidies in the sector decrease.
Zomato and Swiggy remain top picks for the brokerage in the quick commerce market and it maintains an 'overweight' rating for both the companies.
Swiggy, shifting toward a value-focused strategy, is set to gain market share, though this may impact short-term unit economics, JPMorgan said. Swiggy's success in Mumbai and Bengaluru positions it for future growth, especially if profitability improves in both quick commerce and food delivery segments.
Swiggy Instamart leads in pricing with the lowest median prices, while Blinkit excels in SKU availability and basket sizes in NCR and Bengaluru. Zepto, despite offering discounts, has higher prices, particularly in categories like fresh produce and sports goods.
While quick commerce players, like Swiggy Instamart and Blinkit, have made significant strides in pricing, e-commerce giants like BigBasket, DMart, and Amazon Fresh still dominate fresh food and grocery discounts. However, the gap is closing, especially with Swiggy's more aggressive pricing strategies.
In terms of SKU availability, Blinkit and BigBasket lead, with both managing strong inventory and low stock-outs. Blinkit stands out in NCR, driving higher basket sizes, while Swiggy excels in Mumbai, and Zepto performs well in Bengaluru, maintaining competitive SKU availability.
Regarding average order value, Blinkit leads in NCR and Bengaluru with larger basket sizes. In Mumbai, Swiggy Instamart has the highest AOV, followed by Zepto and BigBasket, indicating that Swiggy customers are likely to purchase larger quantities per order, which further drives its market share.
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