In India, the rapid growth of quick commerce (q-commerce) has been revolutionary. What was once considered an unviable business model has been gaining strong ground in the country’s e-commerce grocery delivery market. More than 80% of the e-commerce sales of FMCG companies come from q-commerce platforms nowadays. While allowing consumers to get their groceries at the doorstep in just a few minutes, this business model has also benefitted companies. It enables them to bypass local distributors and procure goods directly from manufacturers, securing more competitive prices.
Not just groceries, q-commerce platforms are also making a foray into adjacent segments like mobile phones and accessories, gift items, toys, stationery, household items, and apparel, among others. The sector is growing at a momentous pace, estimated to increase from $0.3 billion to $5 billion by 2025. This fierce expansion points to q-commerce’s immense potential to emerge as one of the largest employment generators in the country in the years ahead. The three dominant players – BlinkIt, Swiggy Instamart, and Zepto – are revolutionizing the way we shop, with their sheer business volume being truly staggering. On a combined basis, they employ nearly 2 lac delivery partners and about 50,000 operations personnel based out of their network of dark stores.
The q-commerce revolution will pave the way for significant quantum of job creation. While there will be demand for delivery and operations, the q-commerce platforms will also lead to growth in related sectors like logistics, warehousing, and the gig economy. As q-commerce continues to transform traditional retail models, it will generate employment opportunities across India, specifically for the youth and those in urban and semi-urban regions.
Let’s look at the four sectors fundamental to the q-commerce industry where we will witness growth opportunities:
Delivery: Delivery riders are the backbone of quick commerce. They play an important role in ensuring the quick turn-around time promised by different platforms in delivering products to the consumer’s doorstep.
Warehouse and Packaging: Quick commerce also relies heavily on strategically located warehouses, known as dark stores, for efficient order fulfilment. These dark stores serve as hubs for storing inventory and processing orders, ensuring speedy delivery to customers. A rise in q-commerce will result in higher demand for jobs in managing inventory and picking and packing orders. Warehouse managers, inventory controllers, and logistics coordinators are just a few of the roles that will be in high demand as the q-commerce sector expands.
Technology: Technology is at the forefront of the ongoing expansion of the q-commerce segment. From the development and maintenance of user-friendly mobile apps to the seamless integration of logistics systems, skilled professionals are in high demand to build and maintain the robust technological backbone that powers these platforms. As q-commerce expands into new verticals and enhances its offerings, the need for talented software engineers, data analysts, and product managers will only increase.
Customer service: Prompt and efficient customer service is one of the crucial aspects of the success of a q-commerce platform. As these platforms strive to deliver a seamless shopping experience, the demand for customer support representatives will continue to grow.
Road Ahead: Addressing the challenges to support job creationWhile the quick commerce revolution holds immense promise for job creation, it is important to consider the challenges that must be addressed to ensure long-term sustainability and stability for the workforce. Delivery riders often face challenging working conditions like long working hours, traffic congestion, uncertain incomes, and a lack of social security. These issues are expected to be largely addressed through the implementation of the recently drafted labour codes, which aim to provide better protections and benefits for gig workers.
Another key concern is the need for skilling initiatives to equip the workforce with the necessary technical know-how for efficient operations. Many q-commerce firms have already digitalized their training and employee engagement processes, leveraging technology to ensure standardization and drive productivity gains. Continuing this will further strengthen the workforce and equip them to deal with the demands of the sector. Additionally, the high attrition rate of up to 30% per month, particularly among delivery partners is a challenge. It must be addressed through improved employee engagement, retention strategies, and competitive compensation packages. Overall, combined efforts to equip the workforce and working conditions will help enhance the employment rate and fulfil the demand of the growing q-commerce industry in India.
The author is Vice President, Business head, TeamLease Staffing
