Quick Commerce: Advantages and Ethical Implications

A national conference titled “The Ugly Face of Quick Commerce” was jointly organized by the Confederation of All India Traders (CAIT), the All India Mobile Retailers Association (AIMRA), and the All India Consumer Products Distributors Federation (AICPDF).

• Harm to Small Traders: The Secretary General of the Confederation of All India Traders (CAIT), stated that the quick commerce are adopting a “trade-killing attitude”, undermining traditional businesses.
• 10-minute deliveries are inhumane: The 10-minute delivery obsession is “inhumane”, arguing that delivery executives are often subjected to unrealistic targets and unsafe working conditions, as they risk their health and safety in pursuit of hyper-speed convenience.

About Quick Commerce

• Quick Commerce (Q-commerce) is a fast-growing segment of e-commerce that focuses on ultra-fast delivery of goods, usually within 10 to 30 minutes, directly to the customer’s doorstep.
• Examples of Q-Commerce Platforms:
  • India: Zepto, Blinkit, Instamart (Swiggy), BB Now (BigBasket).
  • Global: Gopuff (USA), Getir (Turkey), Gorillas (Germany).
• Indian Quick Commerce Market: Currently valued at $3.34 billion, expected to reach $9.95 billion by 2029, growing at a 76% YoY rate in FY 2024.
  

Advantages of Quick Commerce

• Enhanced Brand Visibility: Frequent consumer engagement on Q-commerce platforms increases brand recall and awareness.
• Access to Real-Time Consumer Insights: Platforms collect data on buying habits, helping brands tailor marketing and product strategies.
• Cost-Effective Supply Chain: Brands benefit from shared logistics infrastructure, especially for temperature-sensitive products like frozen foods, avoiding the need to place equipment (e.g., freezers) in multiple retail outlets.
• Wider Market Reach: Q-commerce platforms provide access to a large urban consumer base, including digitally active, time-sensitive buyers.
• Efficient Last-Mile Delivery through Low-Cost Manpower: Availability of low-cost, young workforce ensures efficient, scalable delivery operations.
• Wider Product Choice: Customers can access a broader range of products than in a typical kirana store.
• Time-Saving: Quick Commerce eliminates the need to travel or stand in queues, saving time for working professionals and busy households.

Impact of Quick Commerce on Traditional Retailers

• Loss of Market Share and Profit Margins: Predatory pricing and deep discounting by Q-commerce platforms (Blinkit, Zepto, Swiggy Instamart) make it difficult for traditional retailers and distributors to match prices.
  • According to a PwC report (March 2025): 52% of physical store retailers in urban areas reported a drop in sales.
• Displacement and Business Closures: According to the All-India Consumer Products Distribution Federation (AICPDF), millions of retail shops and distributors are facing losses or closure.
• Unfair Competitive Advantage through Capital Power: Q-commerce firms are backed by venture capital and FDI, giving them “deep pockets” to sustain losses and dominate the market.
• Data-Driven Differential Pricing: Platforms use consumer data from app activity to offer dynamic pricing, which traditional stores cannot implement, placing them at a disadvantage.
• Threat to Livelihood and Employment: The traditional retail supports the livelihoods of crores, many of whom may not be digitally literate or easily employable elsewhere, increasing their chances of unemployment.

Ethical Issues in Quick Commerce

• Gig Economy Vulnerabilities: 
  • Exploitative Labor Practices: Q-commerce relies heavily on gig workers who lack job security, social security benefits, and fair wages.
  • Precarious Employment: Workers are hired as independent contractors, denying them employee benefits like Provident Fund, Employees’ State Insurance and Gratuity.
• Unrealistic Delivery Targets & Algorithmic Control: AI-driven algorithms set aggressive delivery timelines, pressuring workers and risking accidents.
  • GPS (Global Positioning System) tracking, customer ratings, and penalties create a high-stress work environment.
• Low Wages & Incentive Structures: Workers earn per delivery, often below minimum wage standards, with dynamic pay cuts where companies reduce per-order payouts as demand increases, exploiting labor supply.
  • The Fair Work India Ratings 2024 report highlights that no platform provided a living wage to the Gig workers.
• Road Accidents & Occupational Hazards: Delivery personnel face high risks due to speed pressures, leading to accidents and lack of insurance coverage.
• Lack of Workplace Protections: No regulated working hours, leading to overwork and fatigue, and no grievance redressal mechanisms.
• Sustainability Concerns: Quick commerce encourages high-speed, high-frequency deliveries that lead to increased carbon emissions, packaging waste, and unsustainable use of transportation and labor resources.
• Data Privacy & Algorithmic Bias: Customer data collection raises privacy concerns, and algorithmic discrimination may affect order allocation among workers.
• Concern of Fair Competition: Deep discounting and predatory pricing by well-funded platforms distort fair competition, marginalizing small retailers and undermining inclusive market growth.
• Existing Labor Laws & Gaps
  • Code on Social Security, 2020: Extends social security benefits to gig workers but lacks enforcement mechanisms.
    • Example: Many companies classify gig workers as ‘partners’ rather than ‘employees’, allowing them to bypass obligations like providing social security benefits.
  • Occupational Safety, Health and Working Conditions Code, 2020: This code does not adequately cover gig workers’ safety.

Way Forward

• Strengthen Gig Worker Protections: There is a need to amend the Code on Social Security (2020) to mandate platform companies to contribute to gig workers’ PF, ESI, and pension schemes.
  • Furthermore, the government must mandate accident and life insurance coverage for all delivery personnel to safeguard them against occupational hazards.
• Fair Wage Structures : Quick commerce companies should adopt pay models that include both fixed and variable components, rather than relying solely on per-delivery payments.
  • A minimum base pay per delivery must be guaranteed to discourage reckless speeding and ensure basic income stability. 
  • Offer additional bonuses for safe driving (e.g., no traffic violations, no accidents).
• Empowering Local Retailers: To level the playing field, neighbourhood kirana stores should be digitally integrated into e-commerce platforms such as the Open Network for Digital Commerce (ONDC).
• Unionization of gig workers: The government and industry bodies should promote the unionization of gig workers to enable collective bargaining.
• Enforce Compliance through Audits: There should be regular audits of quick commerce firms to monitor compliance with labor laws and workplace safety norms.
  • Penalties must be imposed for violations such as unpaid and low wages, unrealistic delivery targets, and unsafe working conditions etc.
• Consumer Data Protection: There should be provisions made in the Digital Personal Data Protection Act, 2023 to prevent Q-commerce firms from exploiting consumer data for unfair pricing practices.

Conclusion

To ensure ethical growth of quick commerce, it is essential to protect gig workers’ rights and promote fair competition