Quick Commerce: A Bigger Threat to Kiranas Than E-commerce

Quick commerce platforms such as Swiggy Instamart, Zomato’s Blinkit, BigBasket’s BBNow, and Zepto are expanding their rapid delivery services to include electronic products and white goods, rolling out these offerings as early as this Diwali.
 
Industry insiders indicate that brands are keen to collaborate with the quick commerce platforms, fuelled by the proven success of the model in the fast-moving consumer goods (FMCG) sector.
 
With approximately 15 million kirana stores and 80 million trader-based stores across the country, the livelihoods of millions of small business owners may be at risk as quick commerce expands into cities beyond the metropolitan areas.

 
Quick commerce, or q-commerce, is a business model that guarantees the delivery of goods within 10-30 minutes of ordering. Also known as ‘on-demand delivery,’ q-commerce targets small quantities of high-demand products such as groceries, stationery, and over-the-counter medicines.
 
This delivery model gained significant traction in 2020, during the Covid-19 pandemic, when supply chain disruptions heightened the demand for reliable and rapid delivery solutions.
 
See how these quick commerce work?

Quick commerce operates differently from traditional warehousing by utilizing micro-warehouses or ‘dark stores’ strategically located near delivery points, usually within urban areas. These dark stores stock approximately 2,000 high-demand items, positioning themselves as large local convenience stores rather than trying to replicate big retailers like BigBazaar or Walmart. Situated close to residential areas, such as apartment complexes, these dark stores typically serve a radius of about 2 km, enabling fast delivery.
 
Experts anticipate a 4-5 fold increase in sales through quick commerce over the next two years. Meanwhile, the All-India Consumer Products Distributors Federation (AICPDF) has approached the Competition Commission of India (CCI) to request an investigation into quick commerce platforms for potential predatory pricing practices.

Dr. Deepak Kumar Sahu, Editor-in-Chief-VARINDIA