Latest news with #VipulParekh
Time of India
7 days ago
- Business
- Time of India
Blinkit, Zepto and other q-comm players throw light on dark stores
New Delhi: Quick-commerce platforms such as Bigbasket , Blinkit , Swiggy Instamart and Zepto are either opening up their dark stores to walk-in customers or stepping up 'leadership audits' with surprise CXO-level visits amid rising concerns over hygiene and storage standards, and tighter regulatory scrutiny. The platforms are also redesigning storage spaces in their dark stores and writing to food companies to "ensure heightened compliance" on top of existing checks by their audit teams, industry executives said. Explore courses from Top Institutes in Please select course: Select a Course Category Healthcare Operations Management others Data Science Finance MBA Digital Marketing Data Science Data Analytics Artificial Intelligence Management healthcare Degree PGDM Project Management CXO Public Policy Product Management Cybersecurity Technology Leadership Others MCA Design Thinking Skills you'll gain: Financial Analysis in Healthcare Financial Management & Investing Strategic Management in Healthcare Process Design & Analysis Duration: 12 Weeks Indian School of Business Certificate Program in Healthcare Management Starts on Jun 13, 2024 Get Details Dark stores are warehouses in neighbourhood stores that partner with quick-commerce platforms for instant delivery to customers' doorsteps. "We are keeping our dark stores open, so customers are free to visit any dark store anytime," Tata Group-backed Bigbasket's cofounder Vipul Parekh told ET. "Our customer service team will share the location with them and the customer can land up at any dark store and see for themselves." Live Events Bigger rivals Swiggy Instamart, Zomato-owned Blinkit and Zepto are stepping up leadership audits or surprise checks of dark stores, people aware of the developments said. "These are unscheduled checks at the dark stores with a lot more frequency now, so that any lapses which may have been overlooked during routine audits can be fixed immediately," a senior executive at one of the platforms said. The developments come on the back of authorities such as the Food and Drug Administration (FDA) of Maharashtra and the Food Safety and Standards Authority of India (FSSAI) reporting lapses in hygiene and storage after surprise inspections and audits at dark stores that have proliferated across both metros and smaller markets. Multiple packaged foods makers have also been raising concerns and writing to the platforms about hygiene and storage lapses at warehouses. "We have walk-throughs in the dark stores," said an executive at a large packaged foods company, requesting not to be identified. "While this has been a regular practice at some of the platforms for some time now, there is increased emphasis on hygiene." Blinkit and Zepto said they maintain strict compliance with FSSAI protocols and rigorous quality controls at the warehouses. A Zepto spokesperson said the platform continuously strengthens its internal processes. "We conduct regular audits, staff training, and operational checks to ensure high hygiene and product freshness standards," she added. A Blinkit spokesperson said it does not dispatch "products with less than 30% of their shelf life, or under 45 days remaining, whichever is higher," to consumers. "To further reinforce food safety, we conduct regular training for food handlers at our stores and through FSSAI-empanelled agencies," the person said. Swiggy Instamart did not respond to an email query until press time on Tuesday. "After incidents of lapses came out, we received reassurances on storage and handling not just from the platforms that were found to be lapse, but even others," a senior executive at a frozen snacks maker said on condition of anonymity. "This is particularly important for categories such as frozen foods because, ultimately, the consumer identifies with the brand if the delivery experience is unpleasant, not the platform." Last month, the Maharashtra FDA had suspended the food business licence of a dark store operated by Zepto, alleging safety and hygiene violations such as fungal contamination and unsanitary storage conditions. Last year, the food safety commissioner in Hyderabad reported "disorganised, unhygienic and dusty" storage racks at a Blinkit store. Quick-commerce is the fastest-growing channel for companies making daily essentials, staples and premium grocery products that reported anywhere between 50% to 100% growth on the platforms in FY25, though on a smaller base. Many companies including ITC , Tata Consumer Products , Nestle and Marico have been introducing packs only to sell on quick commerce channels. On Monday, Blinkit's parent Eternal reported the latter's revenue at Rs 2,400 crore for the April-June quarter, ahead of its food delivery platform Zomato's revenue of Rs 2,261 crore.
Time of India
17-07-2025
- Business
- Time of India
'Don't expect quick commerce to slow down': BigBasket's Vipul Parekh says dark stores are already profitable
Bengaluru: 'Don't expect quick commerce platforms to slow down… they're going to focus on how large they can be,' said Vipul Parekh , Co-founder of BigBasket , dismantling the perception that quick commerce is structurally unprofitable. Speaking at the 5th edition of E-commerce & Digital Natives Summit 2025, Parekh noted that many of the dark stores run by top players, including BigBasket's BB Now , Blinkit, and Instamart , are already generating profits. 'If you take the top 25% - 50% of stores, they're all profitable today, even though the company overall may not be profitable,' he said. "The most conservative estimates of quick commerce today are that this will be a 2,50,000 crore or 3,00,000 crore market by 2030, and these are conservative estimates. So, this is a huge retail market opening up. And these kinds of opportunities come once in a lifetime. Therefore, expect significant investment, competition, a multiplayer market, a lot of noise and a lot of narratives. But at the core, if you see a dark store and you see a good performing dark store, they all make money." Explaining the overall losses, Parekh said, 'Quick commerce platforms are expanding very rapidly… setting up new dark stores, spending significantly on customer acquisition… in the hope that scale will eventually solve for profitability." Tier 1 drives the quick commerce engine While many players talk about expanding into smaller cities, Parekh offered a grounded view on market potential. 'Quick commerce is still a tier one model… in tier two, tier three markets… that network is not dense enough.' He estimates that by 2030, tier 2–4 cities will make up about 20 per cent of the quick commerce market, equivalent in size to 'one Bangalore.' 00:08 Commenting on the future of India's millions of kiranas, Parekh rejected the notion that quick commerce will render them obsolete. Instead, he sees them adapting and even thriving. 'There are multiple things that will happen… the more interesting evolution that I am finding is kiranas are digitising and becoming dark stores,' he said, adding that, in many cases, it may be a better economic opportunity.
The Star
13-06-2025
- Business
- The Star
Invisible stores, instant shopping
In the sprawling financial hub of Mumbai, armies of 'dabbawalas' have for decades crisscrossed the city by foot and bicycle, delivering home-cooked food to office workers who are keen to avoid the searing heat and traffic-snarled streets. Now, across the country, young entrepreneurs are taking that tradition to the next level with the explosion of shopping apps that allow customers to get hold of not only food and drink but anything else from clothes to iPhones – within minutes. The so-called quick commerce apps are redefining the retail game, not only disrupting e-commerce titans such as Amazon with their speed and efficiency but also long-established 'mom and pop' stores, which are no longer convenient enough. At a warehouse managed by online grocer BigBasket in central Mumbai, employees work with military-like precision to pull off deliveries in just 10 minutes. These warehouses are known within the industry as 'dark stores', a reference to being closed off to customers. When a new order is received, a worker leaps into action, darting through aisles filled with everything from fizzy drinks to vegetables, packing a bag of groceries handed to a motorbike rider – the modern-day 'dabbawala', Hindi for 'lunchbox man'. Local tech companies have poured in billions to set up these nifty logistical networks across big cities, fuelling India's rapid shopping industry. 'Unprecedented' For millions of customers, it's an easy way to avoid shopping in the sweltering heat – visiting multiple food stalls – and spending hours navigating the country's notorious traffic jams. Growth has been 'very strong', BigBasket co-founder Vipul Parekh said, pointing to forecasts that indicate a compounded annual growth rate of more than 60% over the next two to three years. 'When you talk of a large industry transforming and growing at this pace, that is unprecedented,' he said. Delivery apps such as Getir or Jokr have faltered in Europe and the United States in recent years, as pandemic-induced demand wore off and rising inflation pinched customer wallets. But sales in India have soared from US$100mil in 2020 to an estimated US$6bil in 2024, according to projections by market analysis firm Datum Intelligence. This could hit US$40bil by the end of the decade, according to investment bank JM Financial. Companies say India's quick commerce's growth is partly down to the sheer scale of people living in tight-packed cities within a roughly 2km radius of a 'dark store', said Parekh. 'The revenue potential in that catchment is very high,' he said. A lack of many traditional supermarket grocery chains in India aid the business model, he said. Rinish Ravindra, a regular user, admits that they make him 'lazy', but argues that the convenience is unbeatable. 'I just press a bunch of keys and all of it comes delivered to home,' says the 32-year-old, who works in Mumbai's film industry. Local players have made rapid progress but competition is heating up. Amazon is getting its act together, along with Walmart-owned Flipkart and billionaire Mukesh Ambani's Reliance Industries as they belatedly roll out rapid delivery offerings. 'One of the problems with e-commerce players like Amazon is that, until now, they've relied on these big fulfilment centres that sit on the outside or outskirts of cities,' said Satish Meena of Datum Intelligence. 'These aren't suited for rapid delivery, which is why they now need to invest to build their own dark store networks within urban areas.' 'Just order it online' However, a more crowded industry threatens the sustainability of the sector that has already seen one prominent start-up go bust. 'My sense is that the market is good enough for two to three players,' said Rahul Malhotra of Bernstein, a research firm, adding that the total addressable market may be worth around US$50bil to US$60bil. 'Some of the early movers, with hyperlocal capabilities obviously, have an advantage here.' The sector could also face challenges from thousands of small, family-run shops. The Confederation of All India Traders, a leading industry group that claims to represent over 90 million small businesses, has called for 'a nationwide movement' against newer platforms. Its president likened quick commerce to being a 'modern-day East India Company', a reference to the rapacious British power that began in the 17th century to seize swathes of India, preceding colonial rule. For now, customers are voting with their wallets. 'When I think of groceries, I think, 'I can just order it online',' said Ravindra. — AFP
Time of India
11-06-2025
- Business
- Time of India
BigBasket to launch 10-minute food delivery across India by March 2026, executive says
HighlightsIndia's BigBasket plans to launch 10-minute food delivery services nationwide by the end of fiscal 2026 to compete in the rapidly growing $7.1 billion quick-commerce market. The grocery giant aims to increase its dark store count from approximately 700 to between 1,000 and 1,200 by the end of 2025, using these locations to expedite deliveries. BigBasket will offer a menu featuring items from Starbucks and Qmin, the food arm of Indian Hotels, while avoiding partnerships with external restaurants. India's BigBasket plans to roll out 10-minute food delivery services nationwide by the end of fiscal 2026 as competition intensifies in the $7.1 billion quick-commerce space, its executive told Reuters on Tuesday. The Tata-backed grocery giant will take on established players such as Swiggy 's Snacc, Blinkit's Bistro and Zepto Cafe, which already deliver coffee and ready-to-eat snacks in less than 15 minutes. BigBasket is targeting customers of the existing food delivery firms such as Zomato and Swiggy while also unlocking a new pool of customers, co-founder Vipul Parekh told Reuters. It plans to use dark stores to fuel the service, Parekh added, extending its foothold in India's booming quick-commerce market, which Blume Venture's Indus Valley report calls the " fastest-growing industry segment ever." Dark stores are small warehouses in densely populated neighbourhood buildings, where delivery partners, typically two-wheeler riders, pick up groceries or food for delivery. BigBasket, which brought online grocery delivery service to India in 2011, aims to increase its dark store count from about 700 currently to 1,000-1,200 by the end of 2025. Following a pilot run that began a month ago in the southern city of Bengaluru, the food delivery service will now be expanded to 40 dark stores by July-end, Parekh said. Currently, about 5%-10% of BigBasket's customers who are offered the service are clubbing quick-food items with their normal online orders, but this is expected to grow further, he added. The menu will comprise items from coffee chain Starbucks and Indian Hotels' food arm Qmin, both part of the Tata group in India. No external restaurants will be partnered with, the firm said. Meanwhile, Parekh dismissed media reports of BigBasket seeking external investors for fundraising and reiterated the company's plan to go public within the next 18-24 months. "One of the advantages we have is, being a part of Tata Group, you have enough internal capital available."
Entrepreneur
11-06-2025
- Business
- Entrepreneur
BigBasket to Launch Nationwide 10-Minute Food Delivery by 2026
To support the rapid delivery push, BigBasket will leverage its network of dark stores—small, strategically located warehouses in dense urban areas that allow delivery personnel to fulfill orders swiftly You're reading Entrepreneur India, an international franchise of Entrepreneur Media. India's Tata-backed online grocery firm BigBasket is preparing to roll out a 10-minute food delivery service across the country by the end of fiscal year 2026, stepping directly into the fiercely competitive quick-commerce space valued at $7.1 billion. The company, which pioneered online grocery delivery in India in 2011, will compete with established fast-delivery players such as Swiggy's Snacc, Blinkit's Bistro, and Zepto Cafe—all of which already serve coffee and ready-to-eat snacks within 15 minutes. BigBasket's initiative is part of its broader strategy to expand into new verticals and lock in a share of the market's explosive growth. Co-founder Vipul Parekh told Reuters that the company is eyeing not just users of services like Swiggy and Zomato, but also a broader base of new customers. "We are targeting customers of the existing food delivery firms... while also unlocking a new pool of customers," he said. To support the rapid delivery push, BigBasket will leverage its network of dark stores—small, strategically located warehouses in dense urban areas that allow delivery personnel to fulfill orders swiftly. The company aims to increase its dark store count from about 700 to as many as 1,200 by the end of 2025. The rollout follows a pilot launched last month in Bengaluru. Based on early results, BigBasket plans to expand the service to 40 dark stores by the end of July. Currently, about 5% to 10% of users with access to the service are combining quick-delivery food items with their regular grocery orders. "This is expected to grow further," Parekh noted. Unlike competitors who often partner with a range of restaurants, BigBasket will keep the offering in-house, listing menu items from Starbucks and Qmin—brands under the Tata umbrella. The company has clarified that no external food partners will be brought on board. As the sector heats up, speculation around BigBasket's funding plans has circulated. However, Parekh denied reports of external fundraising efforts and emphasized the company's financial backing from its parent. "One of the advantages we have is, being a part of Tata Group, you have enough internal capital available," he said, reaffirming the company's intent to go public within 18 to 24 months.
