Quick-Commerce Bubble May Burst, Warns Blinkit CEO
The CEO of Blinkit has warned that India’s quick-commerce sector could be nearing a breaking point. He said several platforms are dependent on continuous fundraising to survive, and with investor appetite slowing, the model may no longer be sustainable. Companies offering ultra-fast delivery are facing high costs and low margins, making profitability difficult.
High costs and heavy cash burn
The sector has grown rapidly over the past few years, driven by promises of deliveries in minutes. However, logistics expenses, discounts and operating costs have remained high. Many firms have been spending more to acquire customers than they earn from each order. According to the Blinkit chief, only players who can optimise efficiencies and reduce burn will survive.
Blinkit confident of staying ahead
Blinkit believes it is better positioned than rivals due to its scale and cost control. The company plans to continue expanding into new markets, especially in smaller cities. The CEO said the sector will consolidate, and weaker competitors may shut down or be acquired.
Impact on consumers and retail
A shake-out could reduce the number of platforms offering instant delivery. Consumers may have fewer options or longer delivery times. Traditional kirana stores and supermarkets could benefit if quick-commerce players scale back. Market analysts say the next phase will depend on whether companies can turn convenience into a profitable business.
