India’s “quick commerce” bubble may be about to burst, according to the CEO of Blinkit, an app that promises delivery of orders within 10 minutes.
Albinder Dhindsa’s company launched in 2013 as Grofers, but rebranded in 2021 as Blinkit, invoking the idea that service will happen “in the blink of an eye”. Acquired by the country’s food delivery giant Zomato in 2022, it’s now active in many cities across India, delivering “everything from eggs to iPhones” to a client base of millions. But, it has yet to turn a profit, hampered by “capital costs and supply chain complexity” as it pursues further expansion, including into rural areas, said Bloomberg.
“The pendulum has already swung once from scepticism to exuberance,” said Dhindsa. He believes his company will thrive but he expects a sector reset. “Whether the correction comes in three months or six months or next week, I do not know, but it will come.”
To achieve its speedy turnaround, Blinkit relies on a network of “dark stores” – retail spaces that act as dedicated hubs for fulfilling online orders, rather than in-person shopping. It forms part of India’s rapidly growing quick commerce sector, funded by investors attracted by the country’s “dense cities, lower cost of labour and ubiquitous digital payments”.
But there is a human cost, said The Independent. More than 150 Blinkit workers in the city of Varanasi, Uttar Pradesh, went on a two-day strike in April to protest “unsafe working conditions, falling earnings, and retaliatory ID suspensions”, when gig platforms deactivate workers’ accounts without due process or a means of redress.
This was a “flashpoint” but not the last in what is becoming a “growing struggle” between “speed-driven platforms” and the workers holding up a gig economy that’s forecast to employ over 23 million Indians by 2029. |