iD Fresh Foods witnesses 100x growth in quick commerce in 2 years, while its regular online sales dropped by 25% in the last two years. Its sales through quick commerce account for one-third of its total sales.
In the first three months of 2024 alone, the company made Rs 17 crore per month through quick commerce, compared to just Rs 15 lakh two years ago.
This surge in quick commerce sales is changing how households plan meals, with everything now available within 30 minutes, reducing the need for next-day planning.
iD CEO on Quick Commerce Expansion
The founder and CEO of iD, PC Musthafa, mentioned that the quick commerce expansion hasn’t harmed their offline sales, which still make up most of their revenue. However, he stressed that customers now prefer convenience and predictability, leading to a shift towards quick commerce over scheduled delivery models.
- iD’s top quick commerce platforms include Swiggy Instamart, Zepto, Blinkit, and BB Now.
- PC Musthafa observed that Bigbasket has been surpassed by other platforms due to the rising popularity of quick commerce.
- Despite this, Bigbasket continues to excel in scheduled deliveries, particularly for long shelf-life FMCG products.
iD Fresh Foods’ Perspective on Quick Commerce Profitability
Critics question if quick commerce can make money, but iD’s CEO, Musthafa, believes it can. He says the margins are the same across platforms and the tech is advanced. Quick commerce gives better returns on iD’s ads compared to TV or newspapers. Unlike those, in quick commerce, they know exactly how well their ads work. For every rupee spent on ads, they see right away how much they make in sales. iD aims to make 1x to 3x on their ad spending. They track this by checking daily reports from quick commerce platforms. This direct connection with customers helps iD sell more.
Quick Commerce Operations and Advertising
Quick commerce works fast. Within just 90 seconds of ordering, the package is on its way from the dark store. Each item, like wet and dry goods, eggs, and fruits, is packed separately to prevent damage during delivery, using advanced technology to ensure the right order.
Advertising in quick commerce is more effective than on TV or in newspapers. Unlike traditional ads, quick commerce ads show immediate results. iD aims for a 1x to 3x return on their ad spending and gets daily reports on how well their ads are doing. This direct connection with customers helps sell more and brings in good revenue for quick commerce companies, according to Musthafa.
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