Quick commerce wave catching on
Hyderabad: Jyothi, a resident of a colony that is some distance away from Alwal main road, has to walk about one km for the nearest market for groceries. In the interest of time, she buys the required groceries while coming back from office. If she has to visit the market at odd hours, she postpones […]
Hyderabad: Jyothi, a resident of a colony that is some distance away from Alwal main road, has to walk about one km for the nearest market for groceries. In the interest of time, she buys the required groceries while coming back from office. If she has to visit the market at odd hours, she postpones the visit or manages with what is at home, that was till a few months ago.
She has now found a solution in the form of Flipkart Quick, the section that takes orders for groceries, milk products, vegetables and more. While the ordering and payment mechanisms remain the same as the e-commerce portal, it is the delivery that makes it stand apart. There is no waiting for a day or two for the products to get delivered – they are delivered in a matter of minutes. That is the quick commerce or q-commerce wave that is happening. As the name indicates, the focus is on delivering instantly, sometimes within 15 to 30 minutes of ordering.
The last 18 months have been characterised by an increased screen time on mobiles and electronic payments in the form of UPIs due to Covid. This combination has given rise to a new segment of commerce called quick commerce, also popular as ‘on-demand delivery’ and ‘e-grocery’. Flipkart, Ola, BigBasket, Swiggy Instamart, Grofers (which is now rebranded as Blinkit), Zepto and others are in the quick commerce segment. Most of them have presence in multiple cities or have plans to be in them soon.
Products
The delivery is contactless in view of the Covid scare still continuing. Till recently, the minimum order required was for Rs 99 and now it has been raised Rs 199 on the quick service wing of Flipkart. There is no delivery charge for orders above Rs 199. Fruits, vegetables, medicines, dairy products and fast moving consumer goods like biscuits, atta, toothpaste, stationery, personal hygiene products and over-the-counter medicines are the most ordered products on the q-commerce platforms. Early movers like Swiggy and Dunzo have ramped up their operations in the quick-commerce space. Blinkit announced plans to add 150 dark stores to take the total to 500 this year. Dark stores are mini warehouses that have limited number of stock keeping units (SKUs).
Delivery
The delivery times are drastically cut as the ordered products are sourced from a nearby local warehouse. An army of bike-borne delivery persons wait outside it. The order is processed in about ten minutes and is ready for delivery immediately.
Hyperlocal play
For instance, Swiggy has a mini warehouse at Lothkunta, which caters to the surrounding areas in about five km radius. There are similar micro warehouses of other companies near Kompally and surrounding areas. The prices of fruits and vegetables are dynamic. The price drops or the quantity is increased when they are about to perish.
Big potential and growth drivers
A report from consulting company Redseer Consulting said quick-commerce is now estimated at $ 300 million and is expected to become $5 billion by 2025 mainly driven by rising adoption by convenience seeking customers with an unplanned ordering behaviour. Instant delivery, multiple payment channels, flexibility to order via a mobile are the main factors driving the growth of the quick commerce, which is expected to be a major e-commerce model in days to come. Travel restrictions and social distancing norms, if imposed again, will not dent the demand but instead increase it. Customers willing to pay a premium for instant delivery will be a key for its success in days to come. Analytics can be used for more targeted marketing.
Delivery-only platforms
Flowers, cakes, grocery, restaurant food items are also seeing hyperlocal delivery. Wefast, Dunzo, Grab, Saral, Shadowfox and other players are being used by small businesses to deliver their products to their customers. Quick delivery, tracking, cash on delivery are the key features. They are being used to delivers documents, products, flowers, pet supplies, health and wellness products, fruits, vegetables, groceries, meat , fish and others.
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