Financial and Marketing Analysis of Quick Commerce in India

Abstract

This report is trying to answer a question: what makes a quick commerce platform profitable in the long run? After looking at three years of data about what happened to Dunzo, how Zepto is doing the competition between five platforms and what 67 consumers think the answer is clear: quick commerce platforms make money because of how consumers behave not because of how they deliver things. Quick commerce platforms that people use every day because they are fast show users what they might like and offer subscriptions to get users to order things 6 to 8 times a month. These users spend around ₹28,800 to ₹48,000 per year. The platforms make 6 to 10 times more money from these users than they spend to get them. On the other hand , platforms that get users by giving them discounts but do not make sure their service is reliable only get users to order things 2 to 3 times a month. These users spend around ₹7,200 to ₹13,680 per year. The platforms do not make as much money from them. The difference between these two groups is not because of how money the platforms have, the technology they use or how well they operate. It is because some platforms make users want to come and use them again tomorrow without paying them to do so.