10-MINUTE CONVENIENCE.PRICEY CONSEQUENCES

The quick commerce segment is reshaping Indian retail, but at what cost?

- DEVINA MEHRA

ORGANISED RETAIL STORES were the thin edge of the wedge. Once they arrived, at least in a few cities, consumers could do their monthly bulk shopping from the clean aisles of, say, a DMart or Reliance store, often at lower prices. While this impacted the kirana stores, the effects were not devastating as neither did every neighbourhood have such stores nor did every consumer have a vehicle to lug back their purchases.

That changed with the advent of quick commerce apps like Blinkit, Instamart, Zepto, and Dunzo. These delivery apps have fundamentally reshaped how consumers shop, and products are sold. Predictably, this transformation has led to expected and unforeseen consequences, both intended and unintended. In October 2024, the All India Consumer Products Distributors Federation, an association of retailers and distributors, revealed that around 2 lakh kirana stores closed down in the country over the past year due to the rapid expansion of quick commerce. While the figure may be inflated, there’s little doubt that kiranas have seen a sharp dip in revenue and profitability.

The ‘10-minute delivery’ fever has altered purchasing patterns, especially among younger consumers. Quick commerce services provide them with the luxury of ordering groceries and ingredients after getting home in the evening.

This shift may have implications for employment as well.