Gaurav Malhotra, ED of Axis Capital, notes that the primary risk in a rapidly expanding platform business is diminishing relevance during the growth phase. He emphasized the importance of market share over short-term profits, stating, “What you don’t want to see is market share erosion.”
Malhotra indicated that losing market share makes recovery much costlier later on. He feels that both Eternal and Blinkit are currently navigating the delicate balance between growth and profitability, while Swiggy seems to be focusing more on maintaining margins.
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Due to this focus on margins, Swiggy has reportedly “lost roughly around 200 bps of market share” in quick commerce in the last quarter.
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However, a larger question remains about whether quick commerce will evolve into a winner-takes-all market. Lalit Bhise, Co-Founder & CEO of BIZOM, suggests that ongoing discussions often overlook the scale and adaptability of India’s offline retail landscape.
Bhise highlighted that quick commerce comprises less than 10% of India’s overall retail market, while traditional kirana stores continue to dominate consumer spending nationwide. Countering the narrative that local retailers are fading away, he mentioned, “More than 90% is still driven by mom and pop.”
He also noted that the growth of kirana stores is increasingly shifting towards rural and semi-urban India, where consumer preferences are evolving from unbranded items to packaged goods. In his view, the real change is not the decline of offline retail, but its adaptation to the digital landscape.
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By drawing parallels to the rise of ride-hailing apps, Bhise believes India’s retail market could support a variety of formats and businesses rather than reducing it to a simple two-player scenario. He warned against underestimating small retailers’ capacity to adapt to shifting consumer habits.
“I think it is a little bit early to call quick commerce a win,” Bhise stated, suggesting that kiranas are already adapting to online commerce and could remain significant even as rapid delivery services expand.
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