Question
Download Solution PDFThe term "dark stores," recently seen in the news, refers to:
Answer (Detailed Solution Below)
Option 1 : Warehouses used by quick commerce platforms solely to fulfill online orders, with no in-person shopping.
Detailed Solution
Download Solution PDFThe correct answer is option 1.
In News
- The rise of quick commerce (Q-commerce) in India has led to the expansion of dark stores, which serve as micro-fulfillment centers for rapid deliveries. These stores are strategically placed to ensure 10-20 minute deliveries, especially in urban areas.
Key Points
- Dark stores are warehouses exclusively for online order fulfillment with no walk-in customers.
- Hence, option 1 is correct.
- Used by Blinkit, Zepto, Swiggy Instamart, and other Q-commerce platforms to optimize delivery times.
- Benefits: Faster delivery, efficient inventory management, and personalized shopping experiences through customer data.
- Challenges: Traditional retailers have raised concerns over predatory pricing, deep discounting, and unfair competition.
- Market Growth: India's quick commerce market is valued at $3.34 billion and is expected to reach $9.95 billion by 2029.
Additional Information
- Dark stores first gained prominence during the COVID-19 lockdown as consumer demand for rapid delivery surged.
- Regulatory scrutiny: The Competition Commission of India (CCI) is investigating allegations of anti-competitive practices in quick commerce.
- Global Trend: Dark stores are a key part of e-commerce logistics in countries like the U.S., U.K., and Europe.