The surge in 10-minute grocery deliveries has significantly affected traditional retail businesses. The online delivery services from different platforms deliver the packs within a short span of six to 10 minutes anywhere in the city. Local retailers are feeling the pressure as consumers increasingly prefer the convenience and speed of these online services.
Many store owners have reported a noticeable decline in foot traffic and in-store purchases. Before your tea cools, someone zips through traffic to replenish your sugar supply,” says Raj Kumar, a regular user of quick commerce services in Visakhapatnam. This is the new reality of urban Indian retail, where sudden needs for anything from diapers to electronics can be satisfied within minutes.
The expansion of quick commerce has been dramatic. What began as rapid grocery delivery has evolved into a comprehensive service network, offering electronics, clothing, cosmetics, and even festival-specific items like Diwali hampers and gold coins. During recent Dhanteras celebrations, several platforms advertised 10-minute gold coin deliveries, highlighting the extent of this transformation.
Traditional shop owners are feeling the pinch. For instance, Sai, a grocery store owner on Old Jail Road, shared that foot traffic has dwindled significantly. He noted that only customers who can afford to pay through EMI schemes frequent his store.
Quick deliveries affect local businesses
Many who browse his shop often end up purchasing only at the end of the month. Delivery workers also face significant challenges due to the imposed time constraints.
Vinaya Sagar, a delivery person from Visakhapatnam, explained his experience: “I don’t work for just one platform. When I’m in Madilapalem and receive an order notification, I head to the nearest hub where items are packed with a token number.” He described how he must collect parcels from designated racks and adhere to strict delivery timelines. If he fails to deliver within time in three attempts, deductions are made from his salary.
Despite the incentives for good performance based on ratings, he often finds himself racing against time even in extreme weather conditions. An area manager from one of these platforms, who preferred to remain anonymous, elaborated on their operational model. These platforms utilize dark stores or local fulfilment centres, which stock high-demand products to ensure quick access for delivery personnel.
Workers are assigned to these centres, and mobile applications are used for real-time order notifications and optimized delivery routes. AI streamlines the process by calculating efficient routes and time spans. Once an order is placed, it is swiftly processed at the nearest fulfilment centre, allowing delivery personnel to quickly pick up items and navigate through traffic.”
Industry experts suggest that unless traditional retail businesses adapt to the changing market dynamics, they may continue to lose out to these fast-growing delivery platforms.
Retailers are exploring options such as launching their own delivery services or partnering with existing platforms to retain their customer base. The trend highlights a broader shift in consumer behavior towards convenience and immediate gratification, driven by advancements in technology and logistics.
