Quick commerce cos to double gig worker hires
Premium- The sector hired 70,000 to 80,000 gig workers in FY22, with a spike in Q3
NEW DELHI : Quick commerce firms are set to double gig worker hires to over a million in the coming fiscal as they deepen their presence in existing markets and make inroads into newer ones, according to staffing firm TeamLease Services Ltd.
The sector, including rapid grocery delivery, early morning delivery of milk, eggs and other such household items, hired 70,000 to 80,000 gig workers in the current financial year, with a spike in the December quarter. This number could double in FY23, said Ajoy Thomas, vice-president and business head (retail, e-commerce, logistics and transportation), TeamLease Services.
Quick commerce companies process speedy deliveries of everyday items. Companies usually set up dark stores—large warehouses—or partner with local grocery stores to service orders in a short span of time.
In India, this sector has seen new firms enter even as established players Zepto, Blinkit (formerly known as Grofers), Swiggy Instamart and Dunzo Daily ramp up speedy supplies. Quick commerce got a fillip as demand for online orders surged in the aftermath of the pandemic.
Gig roles are taken up by delivery partners, pickers, loaders and packers.
Quick commerce and logistics company Dunzo has launched its grocery delivery service Dunzo Daily in Bengaluru, Pune and Chennai, with Dunzo’s delivery fleet comprising more than 15,000 people. “This number is estimated to scale up to 60,000 (in FY23)," said Kabeer Biswas, CEO and co-founder, Dunzo.
The company is planning to expand through the year. Beginning with Dunzo Daily launches in Mumbai and Hyderabad this month, the number is set to hit eight cities by April and 20 by the end of the year, Biswas said.
“The expansion plans are making it clear that most of the hiring will be focused on Dunzo Daily. We believe quick commerce will scale higher in India in the coming months, and Dunzo will be at the forefront to drive the growth of this category," he said.
Swiggy declined to comment on queries specific to its quick delivery business but added that it is currently present in 21 cities through its express grocery delivery service Swiggy Instamart. In December, Swiggy said it would invest $700 million in Instamart as it looks to double down on non-food deliveries. In all, the company has over 250,000 delivery partners across food and grocery.
According to TeamLease, e-commerce companies created an estimated 500,000 to 700,000 new roles for gig hires in the current fiscal. Thomas expects this number to jump to more than a million in FY23. “Within e-commerce as a whole, there could have between 500,000-700,000 new opportunities in the temporary space created in FY22. We are seeing this to move to 1-1.2 million in FY23. This was one of the sectors which were never affected because of covid. In fact, covid has only helped them to grow much faster," he added.
Email queries sent to Zepto remained unanswered.
While quick commerce has seen a flurry of entrants, it has also drawn flak from critics who question the profitability and viability of the model. Yet demand for such services is expected to grow.
India’s market for quick commerce is set to touch $5.5 billion in by 2025, growing fifteen times its current size, management consulting firm RedSeer said in a note earlier this month.
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