BERNSTEIN SEES QUICK-COMMERCE DISCOUNTS NORMALISING

Bernstein says discounting in quick commerce has reduced materially, with grocery discounts declining by around 400–500 bps over the last 1–2 months.

The aggressive phase of dark-store expansion is also slowing as major players approach the ~1,000 dark-store threshold required to achieve broad coverage across large cities. Companies are expected to shift towards more targeted discounting, including larger-cart incentives and repeat-customer offers, instead of broad customer-acquisition discounts. The next phase is likely to focus on improving productivity and profitability from existing dark stores rather than rapid network expansion. The focus is therefore shifting from customer acquisition towards customer retention, higher order volumes and better store-level economics. Impact: Positive — moderation in discounts and slower dark-store expansion could improve unit economics and support the path towards profitability for Eternal and Swiggy.