Quick Commerce Frenzy: Companies Scramble for Dark Stores and Talent Amid Rapid Growth
Quick commerce firms are in a heated battle to expand operations, with a rush to open dark stores and a scramble to find personnel to manage infrastructure and supply chain.
Quick CommerceDark StoresEcommerceLogisticsSupply Chain ManagementReal EstateSep 03, 2024
There’s fierce competition for the right sites — now increasingly expensive and difficult to find in large cities — to set up these micro warehouses for servicing localities in the vicinity. Meanwhile, the likes of BigBasket, Zepto, Flipkart Minutes and Swiggy Instamart are recruiting aggressively, as well as poaching, people in the know told ET.
Acquiring dark stores and managing daily operations are critical aspects of delivering orders within 15-30 minutes. “All platforms are in a land-grab mode as they look to almost double their dark store count in the coming years,” BofA Securities said in a report dated August 30.
Rents for such commercial spaces in central locations are higher than for warehouses operated outside city limits by ecommerce companies such as Amazon and Flipkart. High rates in cities are making it challenging for quick commerce firms to find affordable real estate.
Aadit Palicha, chief executive of Zepto, which closed a $1-billion round last week, said finding real estate for dark stores in densely populated areas of large cities is challenging, but not in the newer (tier II-III) markets. “It’s a geography-specific issue,” said Palicha.
Apart from Zepto, Zomato-owned Blinkit has started expanding into smaller places, having entered Bathinda in Punjab, Haridwar in Uttarakhand and Vijayawada in Andhra Pradesh over the last few weeks.
To meet the growing consumer demand, quick commerce platforms are increasing stock-keeping units, or different items at the dark stores, to 10,000 and even 25,000, from 4,000-5,000, BofA Securities said in its report.
The resulting demand for human resources is another confrontation. “The hiring activity in quick commerce is at all levels. There are at least five big digitally native players competing for the pole position,” said Anshuman Das, founder and chief executive of search firm Longhouse Consulting.
Flipkart, which ventured into the space with Minutes, has hired for many roles from companies such as Tata-backed BigBasket, which is also moving to a fully quick-delivery model.
Poaching is happening at all levels across marketing, operations, supply chain management and finance, a Gurgaon-based quick commerce executive said. “Senior executives as well as mid-level managers are in demand,” he said.
Zepto has been aggressively hiring too. “Zepto is hiring folks from companies such as Amazon, Flipkart, Zomato, Swiggy, Ola and Urban Company,” said an executive.
Palicha said he plans to bring in 500 executives in the coming weeks. Zepto is shifting base from Mumbai to Bengaluru, increasing its personnel requirement.
Frequently Asked Questions
What is quick commerce?
Quick commerce is a type of ecommerce that focuses on fast and convenient delivery of products to customers, often within 15-30 minutes.
Why are quick commerce firms struggling to find dark stores?
Quick commerce firms are struggling to find dark stores due to high rents in central locations and intense competition for limited space.
How are quick commerce firms expanding their operations?
Quick commerce firms are expanding their operations by increasing their dark store count, hiring more personnel, and expanding into new markets.
What is the role of logistics in quick commerce?
Logistics plays a critical role in quick commerce, as it enables the fast and efficient delivery of products to customers.
Which companies are leading the quick commerce space?
Companies such as BigBasket, Zepto, Flipkart Minutes, and Swiggy Instamart are leading the quick commerce space in India.
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