Dark-store surge casts a shadow on rider pay

Quick-commerce expansion is shrinking trips and cutting rider incentives

- Sakshi Sadashiv

Consumers of quick commerce are thrilled by speed, but for the delivery guy, it's hardly a joyride. Companies, including Instamart, Blinkit and Zepto that deliver grocery and other household essentials within minutes have expanded their network of dark stores - distribution centres set up in densely populated areas to fulfil online orders - in a bid to save costs and accelerate deliveries.

A surge in these dark stores is surely speeding up deliveries but shrinking rider paychecks, as shorter trips slash distance-linked incentives. As a result, average per-order payouts to quick commerce riders have tumbled, and delivery workers are now quitting platforms within 3-6 months of joining, say industry experts.

"Store density has gone up, and, hence longer distance orders aren't in the picture anymore," said Kartik Narayan, chief executive officer at staffing firm Team Lease Services Ltd.