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videos | IST

Startup Street: Grofers’ Albinder Dhindsa on opportunities, challenges in India's quick commerce space

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Grofers and Zepto are offering 10-minute grocery deliveries in several cities, while Swiggy's Instamart service is offering deliveries between 15-30 minutes, and Dunzo 19 minutes. Ola too is set to re-enter the space. While customers are happy to get their groceries instantly, there is concern among delivery personnel on safety and increased work pressure, Startup Street caught up with Albinder Dhindsa, Co-founder and CEO of Grofers, to discuss the issue.

The 30-minute pizza delivery war is passé. This is the age of 10-minute grocery deliveries. Grocery platforms such as Grofers and Zepto are offering 10-minute deliveries in several cities, while Swiggy's Instamart service is offering deliveries anywhere between 15-30 minutes, and Dunzo promises deliveries in 19 minutes. Ola too is all set to re-enter the grocery delivery space.
There are nearly 20 million households addressable by quick commerce in India, according to a recent RedSeer report. Top-ups and unplanned purchases account for two-thirds of India's consumables spends, quick commerce is expected to grow 10-15 times to reach market size of $5 billion by 2025, RedSeer says.
Zomato recently shut down its grocery pilot that ran on a marketplace model, and the company acknowledged poor customer experience and "gaps" in the model
Between the marketplace model and inventory-led model, industry experts are placing their bets on the latter and so are players such as Grofers, Swiggy Instamart and Dunzo who are aggressively setting up  across cities.
What are dark stores?
Dark stores are hyper-local fulfilment centres distributed densely in cities for fast delivery.
Swiggy had also launched a marketplace based grocery delivery pilot two years ago. However, they had to also pull the plug on the service due to below-par customer experience. Just a year later, in 2020, Swiggy launched Instamart on a new model of dark stores and has expanded to about 10 cities.
Grofers also has rapidly added dark stores, with 200 dark stores across 14 cities to enable quick, 10-minute deliveries.
But while customers are happy to get their groceries instantly, the express delivery push has led to concerns among delivery personnel on safety and increased work pressure,
To discuss all of this Startup Street spoke to someone who has been an early player in the space Albinder Dhindsa, Cofounder and CEO of Grofers.
For full interview, watch accompanying video...