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How dark stores are powering quick commerce's rise

Economic Times

Economic Times · 1y ago

How dark stores are powering quick commerce's rise

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.

Related News

Ola plans to open dark stores to enter quick commerce sector: ET

Hindustan Times

Hindustan Times · 1y ago

Ola plans to open dark stores to enter quick commerce sector: ET

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.

Amazon tests quick commerce Tez with staff, Flipkart doubles down with Minutes

Economic Times

Economic Times · 9m ago

Amazon tests quick commerce Tez with staff, Flipkart doubles down with Minutes

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.

Is hyperlocal warehousing the future?

Inshorts · 4m ago

Is hyperlocal warehousing the future?

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.

How dark stores are lighting up the online beauty business

Livemint

Livemint · 1y ago

How dark stores are lighting up the online beauty business

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.

Government to quick commerce players: throw more light on dark store ownership structures

Economic Times

Economic Times · 1y ago

Government to quick commerce players: throw more light on dark store ownership structures

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.

Quick commerce promised electronics companies a spark, delivered a glitch instead

Economic Times

Economic Times · 2m ago

Quick commerce promised electronics companies a spark, delivered a glitch instead

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.

Quick commerce to hike festive workforce by up to 60%

Economic Times

Economic Times · 1m ago

Quick commerce to hike festive workforce by up to 60%

Quick-commerce platforms plan to increase their hiring by 40-60% this festive season, aiming to handle an anticipated rise in demand. Staffing firms anticipate the recruitment of 80,000 to 100,000 workers for quick-commerce roles alone. These include positions in dark stores, delivery, software development, business analysis, and customer service. The festive season will see the gross merchandise value reaching up to ₹12,000 crore. Platforms like Flipkart, Amazon, Blinkit, and Zepto are preparing for this demand hike.

Zepto Business Model

Internet

Internet · 1y ago

Zepto Business Model

The blog explores Zepto's quick commerce grocery model, highlighting its rapid rise to $100M ARR in under two years. It details Zepto’s 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.

Blinkit, Zepto and other q-comm players throw light on dark stores

Economic Times

Economic Times · 2m ago

Blinkit, Zepto and other q-comm players throw light on dark stores

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.

Zepto gets close to $4 billion in annualised gross order value

YourStory

YourStory · 6m ago

Zepto gets close to $4 billion in annualised gross order value

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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