# Delivery race among Indian grocery startups brings road safety risks Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-01-24 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Indian Grocery Startups Lure Tech-Savvy Customers with Meta Description: Discover how Indian grocery startups like Blinkit and Zepto are revolutionising the industry with 10-minute deliveries, driving concerns over road safety. URL: https://financedigest.com/delivery-race-among-indian-grocery-startups-brings-road-safety-riskshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-01-24t023001z3lynxmpei0m030rtroptp4india-retail-quick-commerce-1736816289258-compressed.jpg) By Aditya Kalra and Abhirup Roy NEW DELHI (Reuters) -Indian grocery startups are luring tech-savvy customers with the promise of deliveries within 10 minutes, sparking a boom in “quick commerce”, but heating up concerns about road safety as bike riders scramble to meet tight deadlines. Competition is already intense in India’s $600-billion grocery retailing industry, populated by the likes of Amazon, Walmart’s Flipkart and Indian billionaire Mukesh Ambani’s Reliance. Now SoftBank-backed Blinkit and its rival Zepto are [racing to hire staff and open stores in their bid to grab a share of the market](https://www.financedigest.com/new-suppliers-race-to-plug-in-to-electric-car-market.html "New suppliers race to plug in to electric car market") by offering the convenience of delivery in 10 minutes, far lower than the hours, or days competitors take. Their mission: pack groceries within a few minutes at so-called dark stores, or small warehouses in densely populated neighbourhood buildings, and send bike riders to nearby locations with about seven minutes to spare. It’s a threat to the larger players,” Ashwin Mehta, a lead IT sector analyst at [India’s Ambit Capital](https://www.financedigest.com/idbi-capital-markets-securities-india-rolls-out-apple-watch-voice-and-touch-based-trading.html "IDBI Capital Markets & Securities (India) rolls out Apple Watch voice and touch based trading"), told Reuters. If people get used to 10 minutes, those companies [offering 24-hour deliveries](https://www.financedigest.com/amazon-offers-shoppers-10-to-pick-up-purchases-as-it-targets-delivery-costs.html "Amazon offers shoppers to pick up purchases as it targets delivery costs") will be forced to reduce their timelines. As activity grows, research [firm RedSeer says](https://www.financedigest.com/over-a-dozen-chinese-based-firms-say-they-have-minimal-exposure-to-svb.html "Over a dozen Chinese-based firms say they have minimal exposure to SVB") India’s quick commerce sector, worth $300 million last year, will swell 10-15 times to touch $5 billion by 2025. Blinkit and Zepto, started by two 19-year-old dropouts from Stanford, have caught consumers’ fancy, satisfying cravings for food and impulse shopping, as well as urgent needs for daily supplies. This is very convenient, it has made a lifestyle change,” said Sharmistha Lahiri, who now turns to Blinkit to [fill the gap](https://www.financedigest.com/analysis-energy-hungry-europe-cant-look-to-u-s-shale-to-fill-any-opec-gap.html "Analysis-Energy hungry Europe can’t look to U.S. shale to fill any OPEC gap") when ingredients suddenly run out in her kitchen, from tomatoes for soup to chocolate icing for a cake. The 75-year-old, who [lives in the city of Gurugram near the capital](https://www.financedigest.com/collegiate-ac-and-shuman-capital-launch-e300-million-european-student-living-fund.html "Collegiate AC and Shuman Capital launch €300 million European Student Living Fund"), New Delhi, was a keen user of Amazon and Indian conglomerate Tata’s online grocer BigBasket, but prizes Blinkit’s rapid response in such situations. The unbeatable convenience of rapid deliveries is evident in Europe and the United States, where [companies such as Turkey’s Getir and Germany’s Gorillas are expanding](https://www.financedigest.com/ebo-ai-expands-uk-market-following-rapid-company-growth.html "EBO.ai expands into the UK market following rapid company growth") fast, but India’s accident-prone roads make quick commerce a dangerous business. “Ten minutes is very sharp,” said a former road secretary, Vijay Chhibber. “If there was a (road safety) regulator, it would have said this can’t be a company’s unique selling point.” Blinkit and Zepto did not respond to queries from Reuters. RISKY ROADS, DRIVERS’ WOES Even in cities, most roads are riddled with potholes, while cattle or other animals straying into traffic present a frequent challenge for motorists, who often violate basic rules. Last year, the [World Bank](https://www.financedigest.com/world-bank-warns-global-economy-could-easily-tip-into-recession-in-2023.html "World Bank warns global economy could easily tip into recession in 2023") said India had a death every four minutes on its roads. Crashes kill about 150,000 [people each year](https://www.financedigest.com/nearly-60-of-people-are-worried-about-their-data-being-used-by-mobile-apps-but-continue-to-download-as-many-as-100-apps-over-the-course-of-a-year.html "Nearly 60% of people are worried about their data being used by mobile apps, but continue to download as many as 100 apps over the course of a year"). All the 13 [drivers for Blinkit and Zepto whom Reuters interviewed in the key](https://www.financedigest.com/the-impact-of-economic-indicators-on-financial-markets-understanding-the-key-drivers.html "The Impact of Economic Indicators on Financial Markets: Understanding the Key Drivers") cities of Mumbai, New Delhi and Gurugram said they faced pressure to meet delivery deadlines, which often led to speeding, for fear of being rebuked by store managers. We get five to six minutes and I feel tense and [fear for my life,”](https://www.financedigest.com/fears-of-two-year-shelf-life-has-businesses-struggling-to-innovate.html "Fears of two-year shelf life has businesses struggling to innovate") said one Blinkit driver, who sought anonymity. In August, Blinkit’s chief [executive said on Twitter](https://www.financedigest.com/musks-twitter-deal-could-test-tesla-executive-bench.html "Musk’s Twitter deal could test Tesla executive bench") that riders were not penalised and could deliver “at their own pace and rhythm,” as dark stores are always near destination sites. Delivery riders disagreed. In their rush, many of them told Reuters, they mark [orders as having been delivered](https://www.financedigest.com/just-eat-delivers-q3-profit-as-cost-cuts-outweigh-lower-order-volumes.html "Just Eat delivers Q3 profit as cost cuts outweigh lower order volumes") even before they get to the destination. And if a customer complained about the practice, they [faced a penalty of 300 Indian](https://www.financedigest.com/indian-billionaires-face-off-in-race-to-solar-domination.html "Indian billionaires face off in race to solar domination") rupees ($4.03). A Blinkit app screenshot provided by one driver showed the term, MDND, or “Marked Delivered, Not Delivered” used to designate such items. Frustration was also on display in the conversation on a WhatsApp group of Blinkit riders in Mumbai reviewed by Reuters. “Ban this 10-minute (delivery),” said one user, after pictures were posted of a rider said to have been injured in a deadline rush. The concerns reflect the dark side of India’s booming gig economy, in which workers often [say they feel shortchanged or battle](https://www.financedigest.com/swiss-national-bank-says-inflation-battle-not-yet-won.html "Swiss National Bank says inflation battle not yet won") tough working conditions. BULLISH Blinkit calls its service “indistinguishable from magic” and [says it wants to become a $100-billion business](https://www.financedigest.com/exclusive-qatarenergy-boss-says-world-cup-tension-will-not-impact-german-business.html "Exclusive-QatarEnergy boss says World Cup tension will not impact German business"). Zepto has been valued at $570 million and has set its eyes on becoming a $20-billion company, already [backed by investors](https://www.financedigest.com/glencore-courts-120-teck-investors-for-bid-backing-as-spinoff-vote-looms-source.html "Glencore courts 120 Teck investors for bid backing as spinoff vote looms -source") such as U.S.-based Glade Brook Capital. The instant delivery market is a $50-billion opportunity, India’s largest [offline retailer](https://www.financedigest.com/how-offline-conversion-will-help-retailers-sell-more-in-2023.html "How offline conversion will help retailers sell more in 2023 "), Reliance, said this month, when it invested in Dunzo, another Indian startup that runs a 19-minute delivery service. But, unlike most foreign companies that charge $2 to $3 a delivery, deliveries by Indian [startups are mostly free in a nation with a population of 1.4 billion potential](https://www.financedigest.com/virgin-orbit-says-space-startup-in-talks-with-potential-investors.html "Virgin Orbit says space startup in talks with potential investors") customers. “With free delivery, the business is unlikely to be viable,” said T.N. Hari, who heads [human resources at online](https://www.financedigest.com/elearningclasses-com-an-online-academy-powered-by-artificial-intelligence-human-instructors-launched.html "eLearningClasses.com An Online Academy Powered by Artificial Intelligence & Human Instructors Launched") grocery BigBasket, which delivers most orders within five hours. And with a delivery fee that makes it viable, the [market size](https://www.financedigest.com/non-invasive-prenatal-testing-market-size-to-reach-us-5-1-billion-and-registering-a-cagr-of-16-4-by-2027.html "Non-Invasive Prenatal Testing Market Size to Reach US$ 5.1 Billion and Registering a CAGR of 16.4% by 2027") is likely to be small. For now, Indians are hooked. Deliveries on New Year’s Eve included more than 43,000 cans of fizzy drinks, a Blinkit investor said on Twitter, adding, “33,440 condoms were ordered on @letsblinkit today. Someone ordered 80 condoms in one go.” [(Reporting by Aditya Kalra in New Delhi and Abhirup Roy](https://www.financedigest.com/lumen-releases-report-from-pwc-on-the-roi-of-attention-technology.html "Lumen Releases Report from PwC on the ROI of Attention Technology") in Mumbai; Additional reporting by Aditi Shah, Chandini Monnappa and Chris Thomas; Editing by Clarence Fernandez) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---