The term "dark stores," recently seen in the news, refers to:

  1. Warehouses used by quick commerce platforms solely to fulfill online orders, with no in-person shopping.
  2. Underground marketplaces operating on the darknet.
  3. Retail data storage facilities for customer analytics.
  4. Blockchain-enabled inventory management systems.

Answer (Detailed Solution Below)

Option 1 : Warehouses used by quick commerce platforms solely to fulfill online orders, with no in-person shopping.

Detailed Solution

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The 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.

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