India’s quick commerce industry — where groceries and essentials are delivered in minutes — is growing rapidly in big cities, but smaller towns are not keeping up. A report by Redseer reveals that while the overall industry grew by 150% in the first five months of 2025, most of that growth came from metro cities like Delhi, Mumbai, and Bangalore.
Even though quick commerce platforms are now available in over 100 cities, small towns contribute only about 20% of total sales. This is surprising because these towns usually make up 60-70% of the overall retail market. This shows that while there’s potential in smaller cities, it’s still difficult to make a profit there.
One of the key problems is low digital usage. Many people in small towns still prefer shopping at local kirana (grocery) stores. These stores often give them free delivery and even offer goods on credit, which online platforms don’t.
In cities beyond the top 10-15, daily orders per dark store (special warehouses for quick delivery) drop below 1,000, and in the next 20 cities, they fall under 700. This makes it hard for quick commerce companies to run profitably in these areas.
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Other challenges include:
- Low trust in online shopping
- Fewer people per area (low population density)
- Unique local preferences that don’t match the usual online offerings
- High delivery costs in less crowded areas
This means that to break even, stores in small towns need 1.5 to 2 times more orders than stores in big cities.
However, some cities like Prayagraj, Varanasi, and Chandigarh are showing good results, with growing customer interest.
Experts say that quick commerce can’t just copy its metro strategy to small towns. It needs localised solutions, better understanding of customer needs, and smarter operations to succeed.
Looking ahead, global consultancy Kearney predicts India’s quick commerce grocery market will triple in size by 2027, reaching ₹1.5 to ₹1.7 lakh crore.
