Quick Commerce Shifts From Discounts To Customer Delight

Amazon is test-marketing its 10-minute delivery service, Amazon Now, in select Bengaluru areas, expanding beyond its earlier employee-only pilot. A full-scale launch could disrupt quick-commerce players such as Zomato-owned Blinkit, Swiggy-owned Instamart, Tata’s BigBasket, and Walmart-owned Flipkart Minutes.

A recent Axis Capital report highlights a strategic shift among quick-commerce firms. Instead of deep discounting, platforms are competing on product variety and delivery efficiency. Previously, aggressive price cuts dominated the market. However, Axis Capital’s research, which tracked pricing since September 2024, found that discounting peaked in December and January before stabilising at 29-32% across Blinkit and Instamart.

The report underscores that sustained heavy discounting is neither viable long-term nor a unique advantage. Instead, platforms are focusing on deeper product assortments and logistics as more sustainable ways to build customer loyalty.

Blinkit has consistently offered the broadest and deepest assortment across affordable and premium product categories. However, Instamart has rapidly improved, even surpassing Blinkit in select premium categories, according to Axis Capital’s latest March 2025 checks.

BigBasket, despite steady improvement, remains behind Blinkit and Instamart as it transitions from scheduled deliveries to quick commerce. Flipkart Minutes lags in assortment depth, struggling with frequent stock-outs and limited premium product availability.
Alongside product depth, delivery efficiency has become a key factor influencing customer experience. A three-month study by Axis Capital, tracking 75 deliveries across Blinkit, Instamart, BigBasket, and Flipkart Minutes, highlighted significant variations in performance.

Swiggy’s Instamart emerged as the leader in delivery efficiency, with nearly 44% of its orders arriving ahead of the promised time and another 28% delivered on schedule. Blinkit followed closely, delivering with minimal variance between estimated and actual times, ensuring consistency. BigBasket, however, struggled to keep pace, primarily due to its ongoing transition from a slotted commerce model to a quick-commerce format.

The study found that Instamart and Blinkit performed better during peak hours of 7 AM to 10 AM and 6 PM to 9 PM. Higher gig worker availability and remunerative incentives during these periods helped minimise delays.

While pricing influences consumer decisions, it has lost its edge as the sole competitive advantage. Axis Capital’s research on 18-product baskets, including premium products, found that discounts have not deepened since January 2025. Instead, discounts across platforms have converged between 29-32%, showing signs of stability.

The report also notes that Blinkit and Instamart adjust discounts simultaneously, suggesting a more disciplined pricing approach has set in. Quick-commerce firms are shifting from price-based competition to differentiated offerings and efficient logistics, with Axis Capital preferring Zomato over Swiggy in the listed space.

With Amazon piloting its 10-minute delivery service, the quick-commerce industry could be on the brink of another wave of disruption. Analysts believe that if the test run is successful, Amazon’s logistics expertise, deep pockets, and supply chain dominance could allow it to scale quickly, posing a serious challenge to existing players.

However, quick-commerce incumbents are not standing still. Blinkit, Instamart, and BigBasket are widening their product categories to improve customer retention, enhancing logistics for more accurate deliveries, and streamlining operations to drive profitability. The competition is shifting from rapid expansion to operational excellence as firms seek to build a sustainable advantage before Amazon makes a full-scale move.

Amazon’s potential expansion could intensify competition further, forcing existing players to refine their strategies. Whether the market sees consolidation, new alliances, or fresh innovations, the winners will not be those who offer the deepest discounts, but those who deliver a seamless, reliable, and delightful customer experience.