Case study 05 / Published research / Commercial analysis
Quick-commerce Unit Economics
Published research
Growth and unit economics do not always travel together.
An investigation into quick-commerce expansion and the differences between Tier-1 and Tier-2 market conditions in India.
Editorial illustration of the project’s focus.
01 / Context
The problem
Lower operating costs can make a new market look attractive while smaller baskets and weaker demand density reduce contribution economics.
02 / Ownership
My contribution
Independent research comparing Tier-1 and Tier-2 revenue drivers, costs, contribution margins and breakeven.
The research question
When can Tier-2 expansion improve Indian quick-commerce unit economics?
Comparative unit-economics analysis using public secondary sources.
What I examined
- Average order values and delivery economics.
- Operating costs and repeat frequency.
- Contribution per order and expansion scenarios.
What the analysis informs
Lower operating and acquisition costs do not automatically make Tier-2 expansion profitable.
Demand concentration, controlled delivery costs and repeat engagement determine whether the cost advantage translates into stronger economics.
The idea to carry forward
Market expansion must be evaluated through contribution economics, not operating-cost differences alone.
Research findings, not evidence of operating a quick-commerce business. SSRN posting does not establish peer review.
Read the original research on SSRN (opens in a new tab)