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News on Medial
How dark stores are powering quick commerce's rise
Economic Times
ยท
1y ago
Medial
Dark stores, also known as micro warehouses, are the center of a new form of commerce called quick commerce. These stores, operated by companies like Zomato's Blinkit and Swiggy Instamart, store a limited number of high-demand products and aim to pack, dispatch, and deliver orders in minutes. Riders on e-bikes swarm the store, delivering orders with great speed. Dark stores are strategically designed to optimize packing time, with frequently ordered items stored up front. However, the gig workers employed by these companies have often complained about poor work conditions and low pay.
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Ola plans to open dark stores to enter quick commerce sector: ET
Hindustan Times
ยท
1y ago
Medial
Ola Cabs parent ANI Technologies plans to set up dark stores to enter the growing quick commerce segment, The Economic Times reported. The EV company will reportedly offer dark stores as a service "where the whole setup will be delivered with significant automation". Dark stores are small neighbourhood warehouses which stock products delivered by quick commerce services.
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Is hyperlocal warehousing the future?
Inshorts
ยท
2m ago
Medial
Micro-fulfilment centres are powering the backbone of Q-commerce. Tucked within city zones, these dark stores enable faster delivery times and efficient last-mile logistics. With predictive algorithms and compact inventories, they optimize shelf space and streamline order picking transforming retail from shelf-based browsing to app-based instant ordering.
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Amazon tests quick commerce Tez with staff, Flipkart doubles down with Minutes
Economic Times
ยท
7m ago
Medial
Amazon is testing its quick commerce service, Tez, with employees in Bengaluru, preparing to onboard dark stores. Meanwhile, Flipkart is aggressively expanding its quick commerce offering, Minutes, targeting around 150 dark stores, and including high-value items and medicine delivery. The quick commerce market, valued at $45 billion, is expected to grow to $77 billion by 2025. New entrants like Amazon and Flipkart are challenging established players, focusing on profitability and market disruption.
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How dark stores are lighting up the online beauty business
Livemint
ยท
1y ago
Medial
E-commerce companies Nykaa and Purplle are considering implementing dark stores, or micro-warehouses, to improve their delivery speeds and compete with quick commerce platforms. These dark stores would be located in major cities like Mumbai and Bengaluru and would aim to provide faster deliveries within a few hours. Both companies are exploring options such as operating their own facilities or utilizing existing spaces with logistics providers. The move to dark stores would help Nykaa and Purplle retain customers and enhance their own brands. However, the high costs and logistical challenges associated with dark stores may require careful execution.
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Government to quick commerce players: throw more light on dark store ownership structures
Economic Times
ยท
10m ago
Medial
Government officials in India have been conducting inquiries with senior e-commerce executives to understand the ownership structures of quick-commerce firms and their dark stores. Foreign-funded online marketplaces are not allowed to own inventory or control sellers, so dark stores are owned by separate entities. The government is seeking clarity on compliance and the impact of quick-commerce on traditional retailers. However, executives and investors in the sector do not expect major disruptions. There is discussion of adding a policy framework for quick-commerce within the broader e-commerce policy.
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Quick commerce promised electronics companies a spark, delivered a glitch instead
Economic Times
ยท
18d ago
Medial
Quick commerce has presented challenges for electronic companies, despite initial sales boosts from platforms like Blinkit and Zepto. Brands struggled with inventory management and demand forecasting for quick delivery, with some dark stores overstocked while others understocked. Large-ticket items, like air conditioners, faced issues due to limited choices and storage constraints in dark stores. Consequently, electronic companies are shifting towards an FMCG-style approach, focusing on real-time inventory tracking and more frequent restocking to adapt to quick commerce dynamics.
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Zepto Business Model
Internet
ยท
1y ago
Medial
The blog explores Zepto's quick commerce grocery model, highlighting its rapid rise to $100M ARR in under two years. It details Zeptoโs operations, including dark stores and quick delivery logistics, and revenue streams such as product margins, handling, and delivery charges. The piece also discusses customer acquisition, engagement, and retention strategies, underscoring Zepto's positioning for future growth and potential challenges.
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Blinkit, Zepto and other q-comm players throw light on dark stores
Economic Times
ยท
17d ago
Medial
Quick-commerce companies like Blinkit and Zepto are enhancing operations by opening dark stores to customers and increasing audits amid rising hygiene concerns and regulatory scrutiny. Dark stores are warehouses for rapid deliveries. Platforms are redesigning storage spaces and urging food companies to maintain compliance. Spot checks have increased following reports of hygiene failures. These improvements are crucial for consumer trust as brands like ITC and Nestle tailor products for this fast-growing market channel.
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Zepto gets close to $4 billion in annualised gross order value
YourStory
ยท
4m ago
Medial
Zepto, a quick commerce unicorn, is nearing $4 billion in annualized gross order value, with year-over-year growth of 4x and a 30% rise since January. CEO Aadit Palicha expressed confidence in reaching EBITDA and OCF breakeven soon, noting a 50% reduction in cash flow burn. Zepto's newly launched dark stores are nearing EBITDA breakeven. The company includes fruits, vegetables, subscriptions, and advertising in its gross order value and plans new customer acquisition strategies.
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Demand for dark stores touched about 24 million sq ft in 2023. Here's a deep dive into the concept
Money Control
ยท
10m ago
Medial
The demand for dark stores is increasing in Tier 1 and Tier 2 cities in India, driven by the growth of quick commerce. A joint research by JLL and Miebach Consulting estimates a requirement of about 24 million sq ft of space by 2023, growing at a steady rate of 12% CAGR to 37.6 million sq ft by 2027. Dark stores are small warehousing urban distribution centers exclusively for online shopping, stocking a limited inventory of products with a short shelf life. Challenges for expanding dark stores include compliance with local laws and finding affordable yet strategically located premises.
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