Delhivery, the logistics giant, has entered the competitive quick commerce space with its new service, Rapid Commerce, which promises delivery within two hours. To make this possible, the company plans to establish between six and ten micro-warehouses in every metro city, ranging in size from 1,500 to 3,000 square feet, according to Chief Operating Officer Ajith Pai.
“These facilities are tailored based on various factors like the number of PIN codes they serve, the local population density, and the product assortment. We use data analytics to map consumer demand in specific areas and collaborate with brands to stock the right products. While the initial estimate is 6-10 stores per metro, we’ll refine this model as more data becomes available,” Pai explained.
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The concept revolves around stocking 500 to 1,000 fast-moving SKUs (stock-keeping units) that account for a substantial share of consumer demand. “The idea is to position these fast-moving products no more than 5-6 kilometers from customers. This allows us to fulfill orders almost instantly. It’s a win-win: consumers get everyday essentials delivered quickly, and brands strengthen customer loyalty through convenience,” Pai added.
The pricing model for brands is straightforward. Instead of charging a commission, Delhivery charges on a per-order basis. “Brands pay for the items they stock and for each order delivered. This approach reduces complexity and ensures shared costs for brands,” said Pai.
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Currently operational in Bengaluru, Rapid Commerce is already processing more than 300 orders daily. The company reports significant demand for everyday essentials and frequently purchased products.
Delhivery’s foray into quick commerce highlights its ability to blend logistics expertise with advanced data analytics to address the growing consumer need for speed and convenience in everyday purchases. The company’s innovative approach could reshape how brands and customers interact in the quick commerce landscape.
