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Non-grocery items deliver bright growth to dark stores

Economic Times

Economic Times · 1y ago

Non-grocery items deliver bright growth to dark stores

Quick-commerce platforms like Zepto, Swiggy Instamart, and Blinkit are experiencing significant growth in non-grocery categories such as beauty, toys, health, and electronics. These platforms are expanding their range of offerings beyond food-related products, attracting more customers. The beauty category has grown threefold on Zepto, while Swiggy Instamart has seen robust growth in electronics, toys, beauty, and home products. Quick-commerce is becoming a popular channel for direct-to-consumer brands, offering fast delivery and engagement for big-ticket purchases. These platforms are increasingly diversifying their stock and offering competitive pricing compared to traditional e-commerce channels.

Related News

Zepto eyes large orders with dark store expansion

Livemint

Livemint · 1y ago

Zepto eyes large orders with dark store expansion

Quick-commerce company Zepto is planning to establish larger dark stores to accommodate a wider range of products. The move comes as the online grocery platform aims to expand into non-grocery delivery and attract investors. These bigger storage facilities will act as hubs for delivering high-value items like electronics, appliances, and luxury goods within minutes. Zepto currently operates around 250 dark stores across major cities in India. The company's revenue grew significantly in FY23, but it also faced widening losses. Zepto is now looking to raise fresh funds ahead of a potential public listing in 2026.

BigBasket set to fully play in quick commerce league

Economic Times

Economic Times · 10m ago

BigBasket set to fully play in quick commerce league

BigBasket, India's largest e-grocer, plans to transition into a full-scale quick commerce platform to meet the rising demand for rapid deliveries. The company's BB Now, which currently offers 10-30 minute delivery service, will exclusively focus on quick deliveries starting next month. BigBasket aims to generate $1 billion of its $1.5 billion sales target for the year through quick commerce. By adopting multiple dark stores and large warehouses, the company plans to address demand by carrying a wide range of grocery and non-grocery items. Other players in the quick commerce space include Blinkit, Zepto, and Swiggy Instamart.

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.

Swiggy integrates Mall offering with Instamart

Economic Times

Economic Times · 1y ago

Swiggy integrates Mall offering with Instamart

Food delivery platform Swiggy is integrating its Mall service with its quick commerce service Instamart. Swiggy Mall currently operates in select areas of Bengaluru and offers a range of non-grocery items. The move comes as competitors Zepto and Blinkit are also expanding beyond grocery products. Quick commerce platforms are experiencing robust growth in non-grocery categories, leading to the emergence of smaller direct-to-consumer brands seeking to join these platforms.

From cabbage to caps: Inside Blinkit’s game plan to deliver anything

Livemint

Livemint · 1y ago

From cabbage to caps: Inside Blinkit’s game plan to deliver anything

Blinkit, formerly known as Grofers, has transformed from an online grocery company to a distribution platform for any product. It delivers a wide range of items, from groceries to electronics and beauty products. The company's strategy of offering a wider assortment of products aims to increase average order value and improve profitability. Blinkit, now a wholly owned subsidiary of Zomato, operates numerous dark stores and collection centers to facilitate quick deliveries. The company's pivot to quick commerce aligns with the growing trend of fast delivery services in India.

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.

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

Economic Times

Economic Times · 6m 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.

Uber testing prepaid-item pickup from local stores in India | TechCrunch

TechCrunch · 1y ago

Uber testing prepaid-item pickup from local stores in India | TechCrunch

Uber has expanded its "Store Pickup" feature, which allows gig workers to pick up prepaid items from local stores and deliver them to customers, to Delhi-NCR in India. The feature debuted in select US cities in December. Customers can order pickups and track them live through the Uber app, similar to how they track rides. The move suggests that Uber sees a business opportunity in delivering items from local stores in India and helps further integrate the app into customers' daily lives. However, there are limitations, including the size, value and types of items that can be delivered.

Swiggy, Zepto and Zomato's Blinkit cash in on quick commerce boom

VCCircle

VCCircle · 1y ago

Swiggy, Zepto and Zomato's Blinkit cash in on quick commerce boom

Swiggy, Zepto, and Zomato's Blinkit are capitalizing on the boom in quick commerce in India. Swiggy, backed by SoftBank, has expanded its grocery business, aiming to deliver orders within 10 minutes. This new model is threatening traditional small grocery stores and reshaping the way Indians shop. Quick deliveries currently account for 45% of the $11 billion online grocery market in India, with expectations that it will reach 70% by 2030. Swiggy plans to increase its warehouse count from 500 to 750 by 2025 and is diversifying its offerings beyond groceries into higher-margin products.

Exclusive | Quick commerce eating into kiranas, not ecommerce: Delhivery CEO Sahil Barua

Economic Times

Economic Times · 11m ago

Exclusive | Quick commerce eating into kiranas, not ecommerce: Delhivery CEO Sahil Barua

Delhivery CEO Sahil Barua believes that quick deliveries in 10-15 minutes may not be sustainable for categories other than groceries and fast-moving consumer goods. Barua predicts that the cost of quick deliveries will eventually increase, leading to longer delivery timelines. Delhivery is focusing on launching a network of shared dark stores for brands and ecommerce players to deliver in 2-4 hours, but will steer clear of instant deliveries. Barua also discusses Delhivery's revenue growth, growth outlook, the impact of quick commerce on ecommerce, and plans for the future.

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