Boom time: The fraught rise of the retail apps

An online shopping revolution is transforming consumer habits but not everyone has a good deal

- Hannah Ellis-Petersen

For those living in the urban centres of India - and increasingly in the country's smaller cities and towns - almost anything can be delivered via shopping apps, many of which can deliver groceries and other essentials in the time it takes to hard boil an egg and for less than 50 cents.

While only 6% of India's $900bn retail market comes from e-commerce, the sector is one of the fastest growing in the world. In 2022, 200 million people in India bought something online.

But in a country of 1.4 billion people, with the economy growing faster than almost anywhere else, companies and analysts say these numbers still only scratch the surface.

By 2027, the number of online shoppers is predicted to rise to 500 million in a market worth $170bn.

Some analysts fear the rise in e-commerce has opened the door for large businesses to build monopolies at a cost to the vibrant traditional marketplace, while others say the boom has exploited India's growing gig workforce.

The sudden rise of e-commerce is all the more remarkable given that, unlike in the west, where vast supermarket chains virtually control the market, regulations mean India has retained its hyperlocal way of shopping.

Big switch

Early days of digital trade

6%

Portion of India's retail market generated by e-commerce

200m

Number of people who bought an item online in 2022

$170bn

Predicted value of e-commerce nationwide in 2027

18c

Wages per delivery of drivers for the Blinkit app