Hence, they have cut down on expansion and started prioritising better unit economics before expanding further. The ideal metric is at least 2,000 orders per day per store. Quick commerce firms are finding out that it takes at least three months for a dark store to adjust its inventory to the likings of a particular locality. Multiple sources told ET that despite companies' announcements of opening hundreds or thousands of dark stores, or micro fulfilment centres, there has been a slowdown to conserve capital. Swiggy did not respond to ET’s request for comment. Going ahead, we will continue to build on our tech, data, and fleet capabilities to optimise the model, enhance the customer experience as we grow, and fulfil Zepto’s promise of 10-min delivery,” the spokespersons added.
“The safety of our riders takes precedence in a few cases where certain areas experience a surge in demand or unforeseen weather conditions that are not conducive for 10-min delivery. The death of 10-minute delivery could be an early sign of things to come.īlinkit, in a statement, said the company has not made any changes to its business model, but did not clarify why it has stopped marketing its 10-minute promise.Ī Zepto spokesperson said it continues to deliver orders under 10 minutes. Multiple executives and stakeholders in the quick commerce space ET spoke with said companies are adapting to the changing funding environment and tweaking the way they are operating. She tweeted that she would raise the issue in Parliament. Mahua Moitra, an MP from West Bengal, slammed the 10-minute delivery model, saying “no civilised society can be incentivising delivery executives to break traffic rules and put own and others’ lives at risk”. The hazards of 10-minute delivery have also caught interest from politicians. Rising fuel costs, high losses due to aggressive dark store expansion, operational challenges like surge times, and the lack of appetite from investors towards such cash-guzzling exercises with no profitable unit economics in sight, are also adding concerns around sustainability of the ultra-fast delivery model. Swiggy even had to temporarily shut down its pick-up and drop service, Genie, in big cities.ĭelivery workforce shortage is only one symptom of the larger problems plaguing the quick commerce industry. The same pool of workers is now in demand not just for delivery, but also for packaging within dark stores. Food and grocery delivery companies were facing an acute shortage of delivery workforce, leading to longer wait times.