Operational risks include addressing threshold viability in tier-2 markets and managing inventory complexity for perishables
While technological advancements and policy support create significant opportunities, operational complexity and regulatory uncertainty pose material risks for India’s quick commerce ecosystem. A report has emphasised that quick commerce faces a dynamic landscape where rapid growth brings both promise and peril.
Dun & Bradstreet, in a report highlighted that while high urban density in tier 1 cities supports high-frequency, low-latency delivery, lower disposable income in tier 3 cities limits uptake of frequent, small-ticket orders.
On one hand, rising consumer preference for convenience and instant delivery in metros present significant opportunities for the sector, there are risks of a market bubble if aggressive growth projections lead to unsustainable expansion and cash burn. The report highlighted that seasonal demand volatility in non-metro markets also pose a risk.
Operational Risks
The report pointed out that urban traffic congestion threatens 10 to 20-minute delivery Service Level Agreements (SLAs). High last-mile cost in low-density areas and inventory complexity for perishable goods and hyper-local assortments present risks. However, micro-fulfilment centres enable faster SLAs and reduce stock-outs.
While traditional ecommerce’s value proposition was breadth and price, quick commerce inverts this logic by distributing inventory into micro-fulfilment nodes (dark stores) embedded within demand clusters, monetising minutes.
The ten-minute delivery is also under fire by the unions representing gig workers, which they claim puts the lives of the workers at risk. Earlier, Raghav Chadha, an Aam Aadmi Party (AAP) Rajya Sabha member, demanded regulations on quick commerce and app-based delivery and service businesses, in favour of gig workers.
The Rajya Sabha member pointed out the concerning trend of ten-minute deliveries, stating that it pushes riders to overspeed, jump red lights and put lives in danger. He added that these workers are not robots, and are someone’s father, brother, husband and son. “The House should think about them and put an end to the ten-minute delivery cruelty,” AAP’s Chadha noted.
Emergence Of Dark Stores
Unlike traditional retail warehouses, these micro-fulfilment nodes are designed not for customer browsing but for rapid dispatch, embodying micro-fulfilment economics, focusing on minimising ‘pick-to-pack’ time, to achieve highly efficient, shortradius order fulfilment.
The report added that Blinkit leads the market and reportedly plans to significantly expand its dark store network, with a goal to have 3,000 stores by March 2027, an increase from its 1,816 stores in September 2025. The company also plans to introduce ‘express dark stores’ for 30-minute delivery of larger, higher value items such as water heaters and air purifiers, which will be larger than its standard 10-minute delivery dark stores.
D&B pointed out that Swiggy Instamart added more than 316 dark stores in January to March 2025, to reach 1,021 stores, with reported plans for sustained expansion over the near term confirmed by the company. Flipkart Minutes, the quick commerce arm of Flipkart, reportedly has plans to expand well beyond 800 dark stores through 2026, it added.
“This infrastructure boom will continue to drive the quick commerce business model, which relies heavily on a flexible workforce. India’s gig workforce, comprising delivery partners and dark store workers, is essential for maintaining tight SLAs, highlighting the direct link between dark store expansion and gig employment growth as per market estimates,” D&B highlighted.
IPOs And Loss-making Firms
India’s federation of fast-moving consumer goods (FMCG) distributors has written to the Securities and Exchange Board of India (Sebi) urging the market regulator to pause or tighten approvals for initial public offerings (IPOs) by loss-making quick commerce companies, citing risks to investors and disruption to India’s retail ecosystem.
The All India Consumer Products Distributors Federation (AICPDF), which represents over 4,50,000 distributors and more than 13 million kirana and retail outlets, raised its concerns in a letter reported in media. The AICPDF’s representation comes amid news that quick commerce platform Zepto has made a confidential IPO filing with Sebi.
The AICPDF also criticised what it described as an “exit-driven IPO pattern” in the sector. It noted that quick commerce players often list publicly after years of losses and negative operating cash flows, and rely on offer-for-sale (OFS) components that allow early institutional investors to monetise stakes at scale without raising growth capital for the business
Concerns Over Packaged Foods
A new survey by community platform LocalCircles indicates that close to half of the packaged food items available on India’s major quick-commerce and online grocery apps fall into the junk, HFSS (high fat, sugar or salt) or ultra-processed category.
The findings are based on more than 24,000 responses from parents of Gen Z across 277 districts. Men accounted for 63 per cent of the participants, while women made up 37 per cent.
According to the report, nearly 50 per cent of packaged food products listed on leading delivery apps qualify as HFSS or ultra-processed, with some platforms reporting even higher levels. Items in this category range from biscuits, chips and chocolates to instant noodles, sugary beverages, candies and similar heavily processed snacks. The assessment covered eight platforms, which are Amazon Fresh, Flipkart Minutes, BigBasket, JioMart, Zepto, Blinkit, Swiggy Instamart and MilkBasket.
Platform-wise, the analysis found that HFSS or ultra-processed items dominate listings across all major services. Blinkit recorded the highest share, with 62 per cent of its packaged food products falling into this category. Zepto followed with 58 per cent, while Swiggy Instamart had 54 per cent of its offerings classified as high in fat, sugar or salt
Call For Government Support
Emphasising that the rapid rise of ecommerce and quick commerce platforms is causing a steep decline in income and livelihoods for thousands of local grocery and kirana shop owners, Indian retailers have appealed to the government to step in and provide a stronger support.
The Federation of Retailer Association of India (Frai), a representative body of about 80 lakh micro, small and medium retailers from across the country, organised an event in New Delhi to raise the issue. According to Frai, over the past few years, digital platforms have reshaped consumer behaviour through deep discounts, rapid delivery promises, and aggressive marketing campaigns, leaving small retailers struggling to compete on an uneven playing field.
“Small retailers and kirana shopkeepers are facing an unprecedented challenge as ecommerce and quick-commerce platforms reshape the market. These enterprises, built over generations, are now struggling to survive against players with deep pockets and aggressive strategies. We believe the government must urgently step in to create a fair competitive environment and empower local retailers with the right technology,” stated Abhay Raj Mishra, Member and National Coordinator, Indian Sellers Collective and Honorary Spokesperson, Frai.
While quick commerce has turned the thesis that ‘time is the new unit of retail value’ into an operational imperative, operational risks include maintaining strict SLAs amid congestion, addressing threshold viability in tier 2 markets and managing inventory complexity for perishables.
