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Quick Commerce Eyes Tier-2 Cities As Next Growth Driver Amid Competitive, Regulatory Headwinds, Notes Emkay

  • Quick Commerce is focusing on tier-2 cities for growth, despite competitive and regulatory challenges, according to brokerage firm Emkay.
  • Tier-2 cities are becoming economically viable for Quick Commerce due to lower costs, making breakeven thresholds lower than in metros.
  • E-commerce giants are integrating Quick Commerce features into their platforms, with large retailers adopting a hybrid model to fulfill orders from existing stores.
  • Quick Commerce players are shifting focus to profitability by increasing average order value through high-margin categories, despite facing competition and execution challenges.

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