10 Minutes for Delivery… Where Are the Profits? (A Reading of Quick Commerce Models and Valuations)

The food delivery sector expanded significantly during the COVID-19 pandemic, driven by the growth of quick commerce and an influx of funding based on 'expand first, profit later.'

However, the return of demand to normal levels and rising interest rates weakened operational economics, shifting investors' focus from gross order value growth to order profitability and reaching breakeven.

While Europe saw declines, mergers, and the exit of several players, the Indian market stabilized around major companies like Blinkit, Zepto, and Instamart.

As for the Gulf countries, their economies differ due to lower population density and higher operational costs, offset by higher purchasing power and average order value.

The sector shift was reflected in company valuations and deals, which declined significantly despite continued growth in gross order value on some platforms.

To access the full study from Argaam Intelligence via the link: here.

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