One in 4 households using quick service apps for buying groceries online: Survey
Quick deliveries are a priority for only 8 percent of online grocery buyers, while for 86 percent of shoppers' top criteria for them are selection, availability and value, the survey said. The pilot study indicated that quick commerce platforms will need to work on selection, value, quality and service, while the established platforms need to reduce their delivery times to 30–75 minutes to gain profitable market share.
One out of four Indian households that shop groceries online use quick commerce or fast delivery applications for buying last-minute essentials and indulgence foods, according to a survey by LocalCircles.
For only 8 percent of those who buy groceries online fast delivery is a top priority, while for 86 percent of shoppers top criteria for them are selection, availability and value.
One in 10 households was placing over 10 orders a month through Quick Commerce apps. Of the households that use fast delivery apps, 71 percent are using them to purchase last-minute essentials or indulgence foods, while 29 percent are buying even their regular groceries.
The pilot study indicated that quick commerce platforms will need to work on selection, value, quality and service, while the established platforms need to reduce their delivery times to 30–75 minutes to gain profitable market share. Current ratings in the pilot show Instamart, Blinkit, Flipkart rated high on delivery, BigBasket on selection and service, Jio Mart on value and selection, while Amazon Fresh rated high on service.
Also Read:
Since the first phase of the pandemic in March 2020, many households have taken to ecommerce sites and apps for all types of shopping needs, getting what they need delivered at home and minimising contact with others. The emergence of quick commerce has changed the on-demand delivery landscape by reducing delivery time from 12-24 hours to 10-60 minutes, the LocalCircles report said. While traditional online grocery suppliers now include Big Basket, Amazon Fresh and Jio Mart, the quick commerce or fast delivery services are being offered by Swiggy Instamart, Blinkit (earlier Grofers), Flipkart Quick, a new platform Zepto. Ola Dash and Big Basket Now are also piloting fast grocery delivery. Quick deliveries for many of these platforms are being made through ‘dark stores’, which are warehouses closer to end customers.
However, it has been reported multiple times that delivery partners of the fast delivery or quick commerce apps are under tremendous pressure to make deliveries within the given time, which has led to speeding and other traffic violations.
According to a RedSeer report released last year, India's quick commerce sector is expected to grow 10-15 times in the next five years to become a $5 billion market by 2025.
The survey received over 30,000 responses from households residing in 272 districts of India. 61 percent of respondents were men, while 39 percent of respondents were women. 49 percent of respondents were from tier 1, while 33 percent from tier 2, and 18 percent respondents were from tier 3, 4 and rural districts. The survey was conducted via LocalCircles platform and all participants were validated citizens who had to be registered with LocalCircles to participate in this survey.
First Published: Feb 18, 2022 1:30 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Stampede-like situation disrupts Rahul Gandhi, Akhilesh Yadav's joint rally in Uttar Pradesh
May 19, 2024 4:26 PM
Ladakh Lok Sabha election: With Independent candidate's entry, it's now a 3-way contest for BJP and Congress
May 19, 2024 4:01 PM