New Delhi: The fast movement in the 10-minute delivery market is getting more difficult, so India based quick commerce startup Zepto is adding cities to its dark store chain. Dark stores are small warehouses situated within the cities whereby products are transported to the customers within a short time.
Zepto was known as a company that delivers grocery and daily items within a few minutes. The company has now set plans to penetrate additional Tier-2 cities in which there is growing demand of delivery in fast services. Previously, rapid trading was only available in major cities such as Mumbai, Delhi, and Bengaluru. However this time smaller cities are also demonstrating good demand.
The fast business environment is very competitive. Other companies such as Swiggy Instamart and Blinkit are also growing at a high pace. Due to this fact, Zepto is working on enhancing supply chains, as well as shortening delivery time even more.
Nonetheless, it is not economical to operate dark stores. The rent, personnel wage, and the cost of logistics are high. Now investors are closely paying attention to whether the quick commerce companies can be profitable. It is not enough to grow in the current startup market.
