Shortage of delivery partners due to their high demand in quick commerce
The quick commerce industry in the country is growing rapidly and major players such as Zepto, Zomato's Blinkit and Swiggy Instamart are facing competition from emerging players. Ine- the past a few months, these players are trying to increase both the market share and the number of dark stores.
All brokerages acknowledged the rising competitive heat in quick commerce after Eternal (formerly Zomato) announced that its food delivery gross order value declined (1.4% sequentially) also due to temporary shortage of delivery partners due to high demand in quick commerce.
In his letter to shareholders, Deepinder Goyal, Founder & CEO, Eternal highlighted that food delivery growth witnessed slowdown and it is due to three key reasons including the "shortage (temporary) of delivery partners due to high demand of delivery partners in quick commerce given the rapid expansion of the industry in the last few months." The drop in demand is also due to competition from quick delivery of packaged food from quick commerce.
In its recent report, staffing conglomerate TeamLease Services said quick commerce maintains a steady hiring pattern throughout the year. Balasubramanian A, Senior VP and Business Head at TeamLease Services, said the country's q-commerce sector is expanding at an unprecedented rate, with the market size projected to reach $5 billion by 2025, growing at a CAGR of 10-15%. "The surge in last-mile delivery, dark store operations, and warehouse management roles is reshaping the gig economy, with Karnataka, Maharashtra, and Telangana leading as key employment hubs," he said. Blinkit added 294 net new stores in the fourth quarter of FY25, and is on track to get to 2,000 stores by December 2025. In quick commerce, the company's Adjusted EBITDA losses increased sequentially from Rs 103 crore to Rs 178 crore.
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