Blinkit, Zepto, Instamart Drive Bengaluru’s Quick Commerce Dominance: ICICI Securities
ICICI Securities says Bengaluru has emerged as India’s most concentrated quick commerce market with dark store density nearly three times the national average.
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Bengaluru has emerged as India’s most concentrated quick commerce market, with dark store penetration nearly three times higher than the national average, according to a report released by ICICI Securities.
The brokerage estimated that Bengaluru currently has approximately 153 square feet of dark store space for every 1,000 residents, significantly ahead of the national average of around 51 square feet per 1,000 people.
In comparison, Tier-II and smaller cities were estimated to have nearly 40 square feet of dark store space per 1,000 residents, highlighting the concentration of quick commerce infrastructure in large urban centres.
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Quick Commerce Expands Rapidly:
According to the report, Bengaluru’s dominance is being driven by higher consumer spending patterns, more frequent ordering behaviour and stronger adoption of app-based instant delivery services in mature metro markets.
The brokerage noted that major quick commerce companies including Blinkit, Swiggy Instamart, Zepto and BigBasket have continued aggressively expanding their dark store networks in cities such as Bengaluru.
The report also indicated that the quick commerce sector is gradually shifting its strategy from rapid dark store additions toward improving store productivity and increasing order density.
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Quick Commerce Competition Grows:
According to ICICI Securities, this transition signals a stronger focus on operational efficiency as competition intensifies and the market matures.
The brokerage estimated that quick commerce currently contributes around 0.6 per cent to India’s overall retail market and approximately 8.9 per cent of online retail activity.
However, the segment is expected to expand further as platforms continue diversifying beyond grocery delivery into categories such as beauty, electronics, fashion and general merchandise.
The report added that grocery purchases are increasingly acting as an entry point for higher-value cross-category transactions, helping platforms improve customer retention and increase average basket sizes.
Competition across the sector has also intensified as existing players continue adding dark stores and micro-fulfilment centres across key urban markets.
The report further noted that newer entrants including Flipkart and Amazon India are also increasing investments to strengthen their presence in the quick commerce segment.
Despite the rapid growth in metro cities, ICICI Securities said smaller cities remain structurally underpenetrated, leaving significant room for future expansion beyond India’s largest urban markets.
