Q-commerce faces rising performance marketing costs, declining margins

Quick commerce platforms that spent up to ₹450 per customer acquisition are now spending over ₹800. They are pushing their standalone quick commerce apps.

In January, Swiggy launched a separate Instamart app. In December 2024, Zepto separated its 10-minute food delivery service, Café, from the main app. Zepto Café has seen a 50% monthly growth, with 75,000 orders daily.

These companies spend heavily on digital ads, freebies for new users, geographical expansion, and opening and maintaining dark stores. While Monthly Transacting Users (MTUs) steadily grow, the order frequencies and average order value (AOV) drive revenues.

Blinkit almost doubled its MTUs to 10.6 million in the October-December 2024 quarter, and last month, it posted an EBITDA loss of ₹109 crore.

Aap Ka Bazar, a new regional q-commerce startup, launched four stores in Dwarka, Delhi. It offers offline retail, q-commerce, and an online platform, offering deliveries across 80 pin codes in NCR.

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