From AI to Hyperlocal models: 7 game-changing tech trends fuelling India’s quick commerce growth
The quick commerce sector in India has grown rapidly over the last few years owing to technological solutions that meet the expectations of buyers. The advancement of smartphones and their increase in usage and increasing dependence on the internet for buying everything has led quick commerce to thrive in India. However, to meet this rising demand, the market is also coming up with new technologies that enable the delivery of the basics in a matter of minutes.
Sources from Reuters also revealed that the quick commerce industry in India was worth $0.3bn in 2021 and could hit $5.5bn in 2025, thanks to high demand and technological adoption. These technological trends are new ways of changing Indian consumer shopping habits, they are moving towards instant gratification and hyper-local deliveries.
However, this article identifies some of the big technology trends driving this rapid delivery revolution.
1. Analytics and Reduced Intelligence System
Artificial intelligence and data analytics have been the key to the efficient management of quick commerce companies. Today’s popular food delivery platforms, Swiggy and Zepto leverage AI mechanisms to anticipate customer requests, stock management, and logistics so that they are smooth and prompt. It has helped in the growth of the sector and India’s quick commerce is expected to be $5.38 billion by 2025 as strenuous data reported by top online coupons website GrabOn.
2. Expansion of Dark Stores
Dark stores, such as facilities directly pop-in for order fulfilment, are all about quick commerce now. According to Reuters, Swiggy maintains 538 warehouses totaling 2000 square kilometres each which is nearly 42% more than the prior year, to ensure swift deliveries. Such a structure helps to fulfil the increasing customers’ requests for fast delivery services from companies.
3. Mobile Applications and technologies
Consumers’ increased use of smartphones and easily downloadable mobile applications have boosted the quick commerce model. Businesses have come up with easier systems that enable consumers to order with ease, track the deliveries and make safe payments. This convenience has shifted customers towards more online grocery buying and quick commerce is estimated to capture 40% of the $11 billion online grocery market of India.
4. Investment in Improving Logistics and Supply Chain Solutions
Adoptions of technology in logistics have improved the supply chain management processes. By adopting innovations like automated sorting centres, real-time track systems, delivery robots and electric delivery vehicles, delivery time and operations costs have been brought down. According to a Reuters report, the Reliance Company is using its diverse supermarkets to deliver groceries within 10-30 minutes to the target market and intends to challenge quick commerce providers.
5. The decision to adopt hyperlocal delivery models
Hyperlocal delivery models comprise delivering products ordered at stores or warehouses within the locality to reduce delivery time. This approach is partly helpful in the success of many quick commerce platforms because they can promise deliveries in minutes. As per, the Business Today data, the GMV of quick commerce in India rose from $0.10 billion in FY 20 to $ 3.3 billion in FY 24, which speaks about this model.
6. Payment gateways: Combination with Digital Wallet
Most payment gateways are integrated effortlessly into quick commerce platforms and involve the use of digital wallets that have made transactions easier. Customers prefer to use multiple payment methods to make purchases since it is convenient, thus has been the driving force behind such a growing sector. According to The Hindu Business Line article, E-commerce has become one of the fastest-growing channels in the fast-moving consumer goods (FMCG) market, especially quick commerce where the premium brands outpaced the non-premium brands to grow nearly twofold.
7. Managing Customer Experience through Technology
Thanks to technological development, quick commerce companies can use targeted suggestions, tracking numbers, and instantaneous responses to customers’ inquiries. These features have helped in improving the quality of the services from customers’ perspective resulting in repeat business. As reported by Reuters, while several quick commerce pioneers like Gorillas and Getir depend on speed alone as their marketing tagline, Swiggy is quickly closing the gap shrinking its average delivery time to 12.5 minutes from 17 minutes last year.
Conclusion
The feature of a conveniently located store is no longer an obstacle to the rapid expansion of India’s quick commerce. Due to the application of big data analytics in operations and increasing store networks for dark stores, the use of mobile technology for supply chain management, logistic innovations, hyperlocal delivery models, integrated payment systems, and customer-centric models, companies have transformed the retail industry.
In this context, as these technologies advance further, great potential for the quick commerce sector is observed, which constantly responds to changing customer needs and establishes new standards for service convenience in the context of the digitalized marketplace.
