Thursday, March 10, 2022

10 Minute Danger - Quick Commerce





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💀10 Minute Danger in the form of Quick Commerce

This was a thought that came to my mind when I went to
nearby XXXX offline ( Intensely not mentioning the name) store
of Quick-Commerce
 Startup in Jaipur. I was passing through that
area, suddenly got a call from wife, she asked me to bring some groceries while
coming back home. I saw a store nearby and visited in, went inside with a
predetermined mindset of what I wanted to buy. I noticed, there were 8 or 10
floor staff standing, perhaps they were in a hurry, all were running towards
the shelves to get the goods off according to the list they were spontaneously
watching.



It was amazing to see them working like robots, for a
while I thought they were all in a hurry, so all were in fast forwarding mode.
It seems like the machine is working. Curiously asked a man who was standing
over the counter. Whether he was a manager or a cashier, I don't know but asked
them what was going on and why they all seem like robots and are in such a
hurry. He said, our company pivoted the model to Quick-Commerce model with a
promise of delivering the consumer's order within 15 minutes. Hence, the time
slot is working as per the order & our IT system is helping to prepare it
and hand over the goods to the delivery man.



I have not seen this kind of energy even in factories in
China, where people also work like robots. Since I am from retail so my
curiosity was high and want to know more about this concept. So, requested him
if he can explain to me the model and how it works. It was high time for him so
he asked me to come in the evening or he would meet me outside the shop and
then explain another day.



After a few days, I called him (he requested, don't give
his name) and we decided to meet at a nearby coffee shop.



Now, we were in a coffee shop and it's like "Chai
par Charcha". I asked him why they changed their business model and what
new evolved Quick commerce model is all about. He added that Startup is
a completely customer centric brand promising to deliver the goods within 10-15
minutes of the ordering by the consumers. They explained to me how they work
and managed to deliver the goods within the promised time. A Mumbai-based
startup is also working on this model, and many others are working on
quick delivery, he added. Hence they are now known as quick-commerce players
who mainly cater to B2C delivery in grocery and pharma. OK, we ended our
discussion but I asked him that I will come down to his store and want to
see the operations physically. So, the next day I went to a store, trying to
find out the working style of the people involved in the process.


I have seen that a order of Rs. 40 , two small bottle of
Thumps cold drink, and one pcs of amul butter in another order valued Rs.
125/-. Even one order was one packet of Eno. This store was getting 1500 daily
orders of MOQ hardly Rs.150/-. On an average the said startup was getting more
than 15000 orders daily basis. Now, if I talk about the opex of one store, it
was amazing to discuss. One Store Manager, 4 Floor Staff, 3 Billing clerk, 2
security Guard, 4-5 Packing staff and 15-20 logistics i.e. Bikers. Appx 1000
sq.feet store area comprising monthly rent : 40000/-, electricity consumption
more than 20000/- and investment on shelf and other capex is all about 30-40
Lakh. I am not going to sum it and matching the ROI but apparently can say that
financial viability of such model is a big question in front of retail
professionals. even, I am not concerning about it.



further, I saw that, more than 20 motor bikes and their
riders were waiting outside the shop. They were all attentive like a soldier patrolling
the border post and waiting for their turn to collect the package which they
would deliver within 10 minutes.



Everyone was in a hurry as enemies are coming towards
them and they have to run to save their lives. A man came running from inside
the shop and handed over the package to a rider. Here every second of time
matters. He took it and put it in his hanging bag, scroll his phone for
delivery status to pick up the order. Within 10 seconds he was out of the
parking area and disappeared. I spent 45 minutes watching the whole process.




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I was curious to see how the list of 5-10 SKUs is
selected from the shelves, packed in a polythene packing, sealed, status
updated on the IT application, handed out for delivery i.e. to the rider and
finally 10 or is delivered to the customer within a maximum of Rs. 15 minutes.
This store was catering within a radius of 3-4 kms.



Though things were clear to me but again I have to ask
why such services are needed in India. Do they really need it?



I am not even asking about the business model or the
companies involved in this process, but my concern is who is looking after the
delivery people who are delivering the goods in the promised time. I have seen
them driving the packages in a big hurry. They were driving rush at a top speed
of 60/KM or even more without thinking about their safety. One can see that
what top speed is needed while driving in the narrow and congested lane of
Jaipur city.
👎



When I inquired about it, the data was shocking that
every day 10-12 delivery people met with some minor or major accidents, not
because of the fault of others but because of their speedy driving. Why are
they doing this? We have to think on this.



All such delivery services which are claiming to reach
the customer in 10 minutes will pose a severe challenge to traffic safety in
the coming months or years. These companies are putting the lives of the
delivery riders at stake.



Just imagine, stretch out the need and think whether such
services are really needed by the consumer or whether the consumer is not
concerned about the safety of the delivery boys who are risking their lives to
get the goods delivered as fast as they should be.



Companies will do their business and they will do it
without taking any humanity or human concern but after all end consumers have
to think that whether they really need merchandise in 10-15 minute or it can be
delayed to thirty minutes. I am okay with 30 minute delivery
time.  



I can smell the danger so raising a flag that soon it
will be a big issue of law & order specially from Traffic Police prospects
and they will take action against such riders or finally if safety norms is not
followed they may send notice to these companies and ask clarification from
them that why they are putting lives of their delivery staff in danger.



Worker's Safety:



Just think on this guys. Disruptions should be
positive



I am concern with such companies because they are cutting
throats of millions of Kirana retailers, giving tough competition, snatching
impulsive buying opportunities from them and on the other side they are putting
lives of delivery staff in danger. Is this kind of Disruption is really
needed in India?  



Please do write to me on



parjakalyanm@gmail.com and comment and share among your
circle and spread as much as you can do and aware the end consumer that such
services will snatch live of someone who is coming to delivery your order in 10
minute time. Risking lives of other for own benefit is also a Sin.
👽



Note: Picture is taken from google and accordingly cut
and paste just to give a feel



Writer: Balwant Singh Rana,


2 comments:

  1. I have read about the danger this kind of business model is bringing to their delivery guys. 24th March, Rajasthan Patrika also mentioned on this topic. Good write up- you are thinking ahead of time. Good work Mr Rana.

    regards
    Santosh Binani

    ReplyDelete
  2. Good write-up. This is what actually happening .. same is in swiggy, Zomato, Zepto, Blinkit, Instamart and also others..

    Regards
    Pravin

    ReplyDelete

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