CLSA says newer players are entering underpenetrated markets, while established platforms continue to deepen store networks in major cities
The quick commerce industry is moving deeper into smaller cities, with dark stores now present across 477 cities. According to brokerage CLSA, the expansion is being driven by a mix of strategies. While established platforms continue to add stores and strengthen their presence in major markets, newer companies are moving into cities where quick commerce penetration remains relatively low.
CLSA said operators are taking a cautious approach when entering these markets. Rather than building large networks immediately, companies are setting up a limited number of dark stores to gauge customer demand and assess the viability of their operations before committing further capital.
“At the same time, emerging players are increasingly targeting geographies that remain underpenetrated by incumbents,” the report said.
The strategy could allow newer companies to establish themselves before larger rivals enter these markets. CLSA said such early entry may provide a “first-mover advantage” as quick commerce adoption expands beyond tier 1 cities.
The brokerage also pointed to a potential benefit for established platforms. Greater consumer familiarity with quick commerce created by early entrants could make it easier for larger companies to enter these markets later, reducing the expenditure required to build the category from scratch.
Blinkit Maintains Lead In Store Network
The distribution of dark stores remains concentrated among the leading platforms in India’s largest markets. CLSA counted 3,536 dark stores across the top 10 cities, excluding Amazon and JioMart.
Blinkit led the group with 969 stores, followed by Zepto at 828. Flipkart Minutes had 627 dark stores, while Swiggy Instamart and BigBasket had 615 and 497, respectively.
Blinkit accounted for roughly 30 per cent of the dark stores across the top 10 cities and more than 34 per cent of the national network. The company also had the largest footprint in six of the 10 leading cities.
Its geographic reach extends beyond the biggest urban markets. According to CLSA, Blinkit operates in more than 180 cities where none of the other major quick commerce platforms has a presence.
Network Density Becomes Key Battleground
The competitive picture is also changing within the largest markets. Flipkart Minutes has moved ahead of Swiggy Instamart in terms of both dark store numbers and pincode coverage across the top 10 cities, CLSA said.
Swiggy recorded the biggest monthly addition to its dark store network among the three leading players. The expansion indicates a greater focus on increasing store density within existing markets.
A larger concentration of dark stores can help platforms improve delivery speeds, offer a broader selection of products and make more efficient use of their logistics infrastructure.
However, the report found that pincode additions by the three largest players have trailed the overall expansion of the sector. This indicates that smaller operators are increasingly filling gaps in locations that remain outside the strongest networks of the established companies.
The shift towards smaller cities could eventually benefit both groups. New entrants have an opportunity to establish an early presence, while incumbent platforms could use the awareness and demand generated in these markets to expand later at a lower cost.
“As these markets mature, established players may be able to scale more efficiently by leveraging existing consumer awareness and demand, reducing the need for significant category-building investments,” CLSA said.
The expansion into smaller and less-served markets is therefore widening the competitive landscape for quick commerce. Beyond simply adding dark stores, companies will need to determine whether they can build sufficient demand and achieve viable economics before scaling their operations further.
