Quick commerce platforms are impacting small retailers, or Kirana shops, more significantly than large e-commerce giants, according to Sahil Barua, CEO of logistics firm Delhivery, during a post-earnings call on Friday. Delhivery’s revenue is heavily reliant on express parcel shipments, with 62% in FY24 coming from e-commerce companies.
Barua explained, “While this might not be a widely accepted view, the reality is that quick commerce is having a bigger impact on kiranas, whereas the effect on e-commerce is less pronounced within the broader retail ecosystem.”
His statement follows the release of a white paper by the Confederation of All India Traders (CAIT), which claims that quick commerce platforms exploit FDI to dominate supply chains, control inventories, offer deep discounts, and offset operational losses, creating an unfair competitive environment for kiranas. CAIT also asserts that these platforms are backed by over Rs 54,000 crore in FDI.
Barua further added that while quick commerce may slightly affect e-commerce categories such as beauty and personal care, the types of products sold in quick commerce differ significantly from those offered by traditional e-commerce platforms. “When consumers are purchasing vegetables or fruits on a quick commerce app, they are not typically buying those on Flipkart, Amazon, or Meesho,” he clarified.
This contrasts with the view of Albinder Dhindsa, CEO of Blinkit, India’s leading quick commerce platform. During an analyst call in August, Dhindsa pointed out that customers are shifting their non-grocery needs to quick commerce apps from e-commerce platforms, but this doesn’t directly affect kiranas. “We’re not taking business away from kiranas. Quick commerce is driving demand for faster deliveries, causing a shift of non-grocery categories to quick commerce platforms,” Dhindsa explained.
A recent report from Datum Intelligence indicates that quick commerce could capture $1.28 billion of kirana sales by the end of the year, representing 21% of total sales on these platforms. It also found that 46% of respondents reported reduced spending at kirana shops, reflecting a shift in consumer behavior toward quick commerce platforms.
Barua also shared that Delhivery is piloting its third-party quick commerce service in Bengaluru, in collaboration with a key BPC partner. This service aims to address both quick commerce and broader logistics needs across India.