Does your city need a 10 minute delivery?
/“Quick commerce (QC) offers solutions for a problem that no one thought ever existed.”
Is your city also facing the same problem that you did not know it had?
By the way, did you know that BlinkIt operates in 23 cities, but 90% of their gross order value comes from the top 8 cities. So if your city has Blinkit, it contributes to some part of that remaining 10%! Similarly, Swiggy Instamart and Zepto operate in only 26 and 10 Indian cities, respectively. So then, what is happening beyond these metros and big cities? As a small city dweller, do you feel there is a need for such ‘quick commerce services’ in the first place?
With such questions in mind, Team Nagrika set out to look for answers. We gathered responses from a small consumer survey, a couple of business owners as well as diverse sources which seemed to have varied perspectives on this newly emerging service of Quick Commerce.
In response to the question, “Would having a 10 min delivery improve life in your city?” 19% of the respondents answered “no,” 23.8% answered “yes,” and 57.1% answered “maybe.”
The findings highlight the growing debate associated with such e-commerce services. According to some respondents, QC services create an “artificial need of urgency.” On the other hand, several respondents have answered that QC services can improve the lives of people, bringing ease and convenience, particularly for the aged and disabled.
The perspectives in our survey reflect the experience of smaller cities undergoing steady expansion, where in the near future, growth of services such as Quick Commerce may also accompany this change. While major QC companies are only venturing into smaller cities with caution, India’s urban population has readily embraced other e-commerce services provided by companies such as Zomato and Urban Company.
With India’s e-commerce sector on an upward trajectory, Invest India reports that more than 60% of e-commerce transactions in India occur in Tier 2 and Tier 3 cities. However quick commerce, which is a subset of e-commerce is still dependent on larger cities!
It is noteworthy that while global businesses operate with huge capital, small city-specific businesses seem to have been succeeding with far less. For instance, Chandigarh-based SoulBowl started grocery deliveries in Chandigarh, Mohali, and Panchkula back in 2014. Similarly, we came across several local QC services in cities like Dehradun, Haridwar, and Nagpur.
The larger question for them [Local QC services] therefore is: how do they survive and make a mark in a market for which high-capital, big-brand names are intensely vying for? In conversation with Nagrika, a senior executive from Nagpur-based Kifayat, shared how they have continually evolved with changing market trends.
While the local QC service providers rely on hyper-local strategies and community engagement, the larger “10-minute delivery” QC services such as Swiggy Instamart and Big Basket’s BBNow have tailored their supply chains to offer certain additional benefits, such as quick door-step deliveries, and discounts. QC stores are also based on the new format of warehousing: Dark Stores, i.e., a distribution centre that operates exclusively for online orders. However, the concept of dark stores is not without challenges!
While QC stores are creating a new format of jobs, particularly those of “delivery partners,” they also come with new complexities. Delivery partners routinely highlight the ordeal of having to deliver in harsh weather conditions and traffic congestion, mistreatment by customers, unfair compensation, long working hours, and uncertain incomes, among others.
Small businesses may not always have the finances to invest in elaborate supply chains and mega warehousing. But with more small-town shoppers going online, traditional shopping is steadily undergoing a makeover by embracing the virtual space and investing in human resources for delivery. This was evident in our consumer survey, which revealed emerging local QC services, which have become more popular after the Covid-19 Pandemic.
Despite caution, small cities have continued to adapt to waves of urban transformation. The question remains: whether the course of transformation in this Quick Commerce Landscape will be championed by the local?
To know the details of what we found out from the consumer survey or in our conversations with Nagpur’s Kifayat, download our report now!
