Can Budget 2026 remove the friction points holding back quick commerce?

Over the past year, the quick commerce landscape in India has evolved rapidly, moving well beyond its early positioning as a speed-first, convenience-led urban play to a deeper conversation around economics, compliance, labour, infrastructure and sustainability. Platforms have had to navigate mounting GST compliance complexities, working capital pressures, and sharper scrutiny of operational models. The sector has also found itself under sustained attention following gig worker protests, even as companies are pushed to balance delivery speed with tighter cost discipline and clearer paths to profitability.

It is against this backdrop that the upcoming Union Budget 2026 assumes particular significance for the sector. Last year’s Budget offered no direct policy support or dedicated allocation for quick commerce. There were no sector-specific announcements around GST relief, delivery fee rationalisation or incentives for last-mile infrastructure. While broader measures such as income tax relief and continued investments in logistics and supply chains were expected to indirectly support consumption, core structural issues remained unaddressed.

This year, however, industry expectations are more measured and pragmatic. Rather than seeking subsidies or short-term stimulus, quick commerce leaders and experts are calling for regulatory clarity, targeted GST reforms, infrastructure enablement and policy frameworks that improve predictability without distorting market dynamics. The year’s Budget is being viewed as a crucial opportunity to remove friction points that hinder sustainable growth.

One of the most pressing concerns continues to be GST-related working capital constraints as per experts. 

Ramesh Bafna, Chief Financial Officer at Zepto, pointed out that unutilised input tax credit represents taxes that businesses have already paid. “Allowing these credits to be used for reverse charge liabilities under Section 9(5) and TCS obligations under Section 52 would meaningfully improve ease of doing business. This change would reduce cash outflows, unlock working capital, and make GST compliance more efficient and transparent, without revenue loss to the government,” he told e4m.

Adding to this, Vejay Anand, Senior Advisor at Prequate and Marketing Strategist, said that reducing GST on last-mile delivery services from 18% to 12% would lower operating costs, improve unit economics and enable more competitive pricing for consumers.

Beyond taxation, several founders stress that quick commerce does not require protection or preferential treatment, but rather clear and consistent regulatory classification. Madhav Kasturia, Founder and CEO of quick commerce logistics platform Zippee, said that ambiguity around dark stores continues to create operational friction. “If dark stores are recognised as logistics infrastructure rather than retail outlets, a lot of friction around zoning, licensing and expansion disappears overnight. The government doesn’t need to pick winners in quick commerce—removing ambiguity is far more helpful,” he said.

Gig worker policy is another area where the industry is seeking a balanced approach. Platforms are advocating for a light-touch national framework centred on insurance, safety and benefit portability, rather than rigid wage controls or employment structures. “Platforms don’t need wage controls. Workers don’t need rigidity. What the ecosystem needs is predictability,” Kasturia said, adding that a clear national framework would benefit both workers and platforms without disrupting operational flexibility.

Adding to this, Anand noted that structured gig workforce development and skill-building programmes could enhance productivity, service quality and workforce stability. With over 300,000 jobs created in the past year, he said supportive fiscal measures could help drive sustainable and profitable growth for the sector.

From a media and retail media standpoint, Budget relief for quick commerce extends beyond cost structures to how platforms can continue building high-quality, high-intent audiences at scale.

Shrikant Shenoy, AVP, Lodestar UM, said that when platforms operate efficiently, they are better positioned to invest in ad tech infrastructure, self-serve tools and richer brand formats—strengthening quick commerce as a media channel. “The wishlist from a media perspective is continued support for digital payments and data-led commerce journeys, which are what make quick commerce powerful for targeting and attribution, along with a simple and stable indirect tax framework around advertising and promotional spends so brands have clarity on how to classify and book these investments,” Shenoy said.

He added that quick commerce’s biggest asset lies in its ability to offer consistent, measurable and brand-safe inventory at scale. “Ideally, the Budget should support quick commerce in evolving from a delivery utility to a full-funnel media environment where brands can build salience, trigger conversion and see results almost in real time,” he said.

Sini Magon, COO and Global Partner of Grapes Worldwide said, "From an advertising perspective, platforms are looking for budget support that allows growth without adding pressure on margins. Relief on GST for delivery-led services, clearer tax structures around digital operations, and incentives that improve last-mile efficiency would free up more room for brands to invest consistently in marketing rather than short-term performance bursts."

Founders and operators across the ecosystem have echoed similar concerns, particularly early-stage and mid-sized platforms that invest heavily in building dark store networks, supply chains and technology long before revenues scale.

Bhavik Jhaveri, co-founder of fashion quick commerce startup ZILO, said GST reforms for startups, especially technology-led platforms, need to be revisited. “In the early years, we made significant investments in building the ecosystem while sales and revenues were still low. A large amount of capital gets blocked in GST credits, which could otherwise be deployed towards innovation and product development,” he said.

Another key Budget ask this year relates to infrastructure support, particularly around electric vehicles, cold chains and urban micro-warehousing. Ekansh Garg, Co-founder and CEO of Cravicious Foods, said that Budget priorities for quick commerce must focus on long-term capacity building rather than short-term stimulus.

“Greater public investment in cold storage, automated fulfilment centres and digitally connected warehouses will be necessary to support high-frequency grocery demand at scale. Funding for logistics technology such as route optimisation and real-time inventory visibility can improve reliability while controlling expenses. Dedicated schemes that help MSME food manufacturers integrate with quick commerce supply chains will strengthen diversity and resilience in sourcing, while programmes for workforce skilling in logistics and operations will further improve productivity,” Garg said.

Industry leaders also see continued EV incentives for last-mile delivery as one of the most practical ways the Budget can support quick commerce. Lower fuel costs, improved unit economics and cleaner cities make EV adoption a clear win across the board.

The Union Budget 2026 is being seen as a chance to unlock trapped capital, remove operational ambiguities and create predictable policy guardrails that allow platforms to invest confidently in supply chains, technology and workforce development. If addressed thoughtfully, experts point out that these changes could help quick commerce transition from a capital-intensive, margin-sensitive model to a more sustainable, compliant and profitable sector.