Indians Embrace 10-Minute Grocery Apps, Impacting Local Retailers

Indians Embrace 10-Minute Grocery Apps

Indians Embrace 10-Minute Grocery Apps: The 10-minute delivery model put up by Swiggy has put a huge burden on the delivery man as they have to drive to their destination in a very short amount of time and if they are moving slowly red alerts appear on the screen.

It has been a serious cause for them as they are racing against time to provide orders within 10 minutes.

However, workers at SoftBank which is backed by Swiggy Groceries are facing major issues with the 10-minute delivery model.

Even Swiggy is focusing on building up more warehouses across India to provide people with any kind of items theory requires.

As per the reports, Last year, the company doubled the number of warehouses to 500 in 25 cities and expected to increase more by 2025.

However, the rapid rise in Swiggy warehouses is also affecting the small grocery stores that have been doing business for a long time.

People used to buy goods from these small grocery stores in their neighborhoods but due to the introduction of online grocery shopping 10 years ago, these small stores have faced huge losses.

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Goldman Sachs said that 45% of India's $11 billion online shopping market is made up of quick deliveries, which are worth $5 billion.

As online shopping companies have adopted quick deliveries, Q-commerce is expected to make up to 70% of the online food market, which is expected to reach around $60 billion by 2030.

Reuters reported Swiggy's strategy in a 2023 document said, "We are training our guns to focus on a market much larger than food."

The growth of quick commerce harms the sales of small retail stores.

Returners reported that a total of 90,000 grocery shops across the country have faced a sales drop of 10% t 60% due to the introduction of quick commerce apps.

In December 2021, Swiggy's Instamart order value was $340 million but in September 2022 it went up to $1 billion. Swiggy is also focusing on more wide market by adding higher-margin items.

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