Quick commerce, the high-speed cousin of e-commerce, is no longer just about 10-minute grocery drops. Platforms such as Zepto, Blinkit, and Instamart are racing to keep pace with rising demand across categories like fashion, electronics, and personal care, and expansion beyond metros. In turn, third-party logistics (3PL) players are emerging as essential partners in this sprint, solving for intercity fulfilment, temperature-sensitive despatches, and inventory management at scale. Marked by tight timelines and low margins, their operations demand precision, capital, and tech-first innovation to stay sustainable.
According to data from market intelligence platform Tracxn, the 3PL sector has mopped up $4.6 billion in funding since 2021, including $70 million so far this year; in 2024, it raised $296.4 million.
Non-metro demand
Quick commerce is still concentrated in urban centres, but steadily growing demand from Tier-2 cities is prompting 3PLs to expand coverage and capacity.
“We’ve seen a surge in order volumes, while the average order value (AOV) has more than doubled,” says Anil Kabra, VP-3PL Sales at Xpressbees.
However, quick commerce still accounts for less than one per cent of Xpressbees’ total volume, underlining its nascency in the broader retail logistics network.
Other players are seeing a more pronounced shift. At JustDeliveries, quick commerce is a core growth vertical.
“It contributes around 45 per cent of our revenue,” says Pradeep Murugesan, co-founder and COO of JustDeliveries. “Dark store expansion and frequent B2B (business-to-business) replenishments for perishables have made mid-mile logistics a critical part of the ecosystem.”
The company, which focuses on temperature-controlled and ambient despatches, is scaling up Tier-2 operations through a mix of intercity hubs and fulfilment clusters. “Tier-1 continues to drive volume, but we’re seeing a structured ramp-up in emerging cities through regional hubs,” Murugesan adds.
Saahil Goel, MD and CEO, Shiprocket, observes that growth is centred not just around food or groceries — it’s extending to categories like beauty, healthcare, fashion, and electronics.
“In Tier-1 cities, customers increasingly expect hyperlocal delivery to be the default, especially for D2C (direct-to-consumer) brands and marketplaces,” he says. In Tier-2/3 cities, the demand is fuelled by rising digital adoption, improved local infrastructure, and desire for services on par with metros, he adds.
Unicommerce, a backend technology provider for D2C and e-commerce sellers, is seeing a growing demand from non-metro markets. “In FY25, over 10 per cent of quick commerce orders processed through Uniware came from Tier-2 and -3 cities,” according to CEO Kapil Makhija. “This expansion is bringing diverse categories — from supplements to fashion accessories — into the quick commerce fold.”
Profitability and tech
While consumer demand is climbing, 3PL firms remain cautious about the unit economics of quick commerce, particularly for last-mile operations.
“The biggest challenge is balancing high order volumes with low AOVs,” says Kabra of Xpressbees. “There’s minimal scope for order consolidation, so manpower and processing costs are high. AOV becomes critical for long-term viability.”
JustDeliveries doesn’t operate in the last-mile segment, but facilitates it through B2B inventory movement. “We handle replenishment from mother warehouses to dark stores, where timing is everything,” Murugesan says. “High-frequency, appointment-based deliveries in congested zones leave no room for error — especially for perishables, where even a small delay can lead to spoilage.”
Shiprocket emphasises the growing role of technology in solving complexities in last-mile deliveries.
“Managing unpredictable order spikes and ensuring real-time visibility are two major hurdles,” says Goel. “Through our hyperlocal network, we optimise rider allocation using mobile-first tech and a pool of more than 10 courier partners.”
The company, which handles hyperlocal fulfilment through its Shiprocket Quick app, says demand from Tier-2/3 is rising. “For consumers in emerging markets, quick commerce builds digital trust — it’s a gateway to brand confidence and faster adoption,” Goel notes.
Echoing this, Unicommerce’s Makhija points to the D2C segment’s push for quick commerce fulfilment. “We’ve seen newer SKUs like nutraceuticals, intimate hygiene, kitchenware, and babycare entering this space,” he says. “This evolution demands better backend integration and multi-node fulfilment strategies.”
Sustainability
Alongside the growing traction, many logistics companies also navigate thin margins and tight delivery windows.
“For mid-mile players, profitability is possible when route density and order predictability are high,” says Murugesan. “With disciplined operations and service-level consistency, 3PLs can build a viable model — but it takes scale and smart planning.”
For last-mile specialists, the margins are even thinner. With little room for batching or consolidation, many rely on high-density urban clusters to stay afloat.
“Quick commerce can be profitable with delivery density, dynamic routing, and multi-category utilisation,” says Goel. He foresees the model becoming multi-pronged — where delivery is just one part of a larger service stack. “Adjacencies like returns, micro-fulfilment, storage and even SaaS (software-as-a-service) integrations offer additional revenue streams,” he says.
Funding interest
While platforms compete on delivery time and assortment, investors say logistics capabilities may emerge as the true differentiator.
“Investors are focusing on high-margin sectors like last-mile delivery and SaaS-driven 3PL platforms,” says Apoorva Ranjan Sharma, co-founder and MD of venture capital firm Venture Catalysts.
Unicommerce highlights that new-age 3PLs offer technology, integrations, and intelligence alongside physical movement. “The next logistics unicorns won’t just move packages — they’ll redefine how commerce is structured across borders, categories, and customer journeys,” says Makhija.