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Tag: Dark Stores

  • Reliance Retail Deploys 600 Dark Stores to Supercharge Hyperlocal Delivery Network

    To improve its coverage of deliveries that take less than 30 minutes throughout its vast network, Reliance Retail has opened more than 600 dark stores around India and intends to open more. After the quarterly results, Reliance Retail CFO Dinesh Taluja responded to an analyst question by stating that JioMart is in a better position because of its vast network of physical shops and the establishment of dark stores in specific areas. JioMart had a 42% Q-o-Q growth and a 200%+ Y-o-Y rise in average daily orders, while Reliance Retail has already operationalised 600 or so dark stores and is investing further to increase its play in speedy hyper-local delivery.

    JioMart Ramping its Quick Commerce Services

    With operations spanning 5,000 pin codes and served by over 3,000 outlets in more than 1,000 locations, JioMart continues to be the fastest-growing quick hyper-local commerce platform, according to Reliance Industries’ parent company’s results statement.

    With its extensive network and well-placed hidden shopfronts, JioMart’s e-commerce platform—which competes with rapid commerce competitors like Swiggy Instamart, BigBasket, and Blinkit, owned by Zomato—has likely grown to be the biggest in the nation. Six months prior, during the March quarter, Reliance Retail claimed that 4,000 pin codes nationwide were served by its hyper-local delivery. Additionally, Reliance Retail has promised 30-minute delivery in ten cities for its fast hyper-local deliveries to the electronics and accessory categories.

    The Recent Growth of JioMart

    The business noted that JioMart attracted 5.8 million new consumers, marking a notable increase in client acquisition. This indicated a 120% Q-o-Q growth rate. The platform’s seller base increased by 20% year over year, and in order to increase customer choice, the live catalogue variety was further enlarged.

    With plans to construct dark stores to increase the coverage area, Reliance Retail, which formerly had retail operations in 77.8 million square feet across India with 19,821 outlets, is drastically scaling up. Reliance Retail had previously stated that the JioMart app uses its network of Reliance Retail stores to deliver within a three-kilometre radius as part of the goal.

    Quick Shots

    •Reliance
    Retail activates 600+ dark stores across India to strengthen its hyperlocal
    delivery network.

    •Goal:
    Deliver orders within 30 minutes using strategically placed dark stores.

    •JioMart
    sees massive growth – 42% quarter-on-quarter and 200%+ year-on-year rise in
    daily orders.

    •Coverage
    expanded to over 5,000 pin codes and 1,000+ cities, served by 3,000+ outlets.

    •Competing
    with Blinkit, Swiggy Instamart, and BigBasket in India’s quick commerce race.

    •Customer
    growth: 5.8 million new users, up 120% Q-o-Q; seller base up 20% Y-o-Y.

    •Reliance
    Retail footprint: 19,821 stores covering 77.8 million sq. ft nationwide.

    •Focus
    on electronics, grocery, and accessories under the 30-minute delivery
    promise.

    •Expansion
    of dark store network planned to further enhance speed and reach.

  • Blinkit Shuts Down in Pune by FDA for Operating Without License

    In the Balewadi-Baner neighbourhood of Pune, the dark store “Energy Darkstore Services”, one of the stores of Blinkit, has been the target of significant action from the Maharashtra Food and Drug Administration.

    The FDA has ordered this establishment to close immediately due to numerous major irregularities and operating without a valid food licence. Following an on-the-spot examination on June 5, this action was conducted.

    This establishment is classified as a food business under Section 31(1) of the “Food Safety and Standards Act, 2006” and requires a licence to operate, per the order issued by the FDA Joint Commissioner’s Office. Energy Darkstore Services was nevertheless delivering and keeping food items without a legitimate licence.

    FDA Inspection Reveals Massive Irregularities

    Numerous abnormalities that Blinkit engaged in during its regular business operations were discovered during a recent FDA team examination. Although a licence was applied for, it was never submitted. The food was stored in rusting racks.

     It was discovered that the store’s cleanliness regime was incredibly subpar. Food package information was discovered to be inaccurate. The employees lacked hygienic certifications and wore no protective gear, such as headgear. For milk and fruits, the necessary certificate was not accessible.

    FDA Giving Stern Warning to Store Manager and Owner

    Omprakash Mantri, the establishment’s owner, and Jai Arvind Bhaskar, the store manager, were found guilty of breaking food safety regulations. Legal action has been threatened against each of them.

    In June 2024, Energy Darkstore Services requested a food licence; however, the licence was denied since the necessary paperwork was not correctly provided. In spite of this, the corporation proceeded to distribute food, which is against the law. The FDA has made it clear that more than one retailer would be affected by the action.

    Every dark store and online food distribution centre in Pune is undergoing a thorough inspection. According to FDA officials, any operation will be deemed a violation of the regulations as long as there is no legal food licence.

    However, by filing all the necessary paperwork, the business can receive a licence under the Food Safety Act and resume operations if it so chooses.

    Dark businesses deliver food straight to customers who place internet orders. According to officials, if these establishments fail to adhere to safety, storage, or cleanliness criteria, it is directly affecting the public’s health.

    The Food Safety and Standards Act will be strictly enforced, the FDA has warned, if it is discovered that such operations are running without a licence.

    This move serves as a reminder to all other underground businesses to promptly obtain legitimate documents. According to FDA authorities, this is only the start. The watchdog body is currently monitoring all dark businesses in Pune city.

  • Reliance Retail Intends to Open Dark Stores as it is Expanding its Quick Commerce Business

    Realiance Retail, the nation’s foremost retailer, is investing in the expansion of its coverage area by opening dark stores. In the March quarter, the company experienced a 2.4x increase in the number of orders from its rapid commerce/hyperlocal delivery service.

    During the earnings call earlier this week, Reliance Retail’s CFO Dinesh Taluja stated that the company saw a tremendous scale-up in the March quarter, with orders growing by more than 2.4 times. According to Taluja, Reliance Retail is now experiencing very significant traction, as evidenced by a 2.4x increase in daily exit orders from quarter to quarter.

    Additionally, this figure will increase significantly during the next 12 months. Customers continue to respond favourably to the company’s offer of no hidden fees, fast delivery, and no delivery charges; thus, the company is also beginning to aggressively market this offering, as per Taluja.

    Reliance Retail Operates Quick Commerce Through JioMart App

    Reliance’s network of existing stores provides hyper-local deliveries, which are sub-30-minute deliveries, to 4,000 pin codes throughout the country. This network has a significantly greater reach than any other quick commerce participant in the country.

    Reliance Retail offers three different sorts of services, including scheduled and expedited deliveries, through its JioMart app. There is a rapid service that takes less than 30 minutes, a scheduled delivery service with a considerably larger selection, and a subscription service where customers can sign up to have daily items brought to their doorsteps in the early hours of the morning. All three of them are picking up quite nicely, Taluja said.

     He added that, on a year-over-year basis, the average daily orders had increased by 62%. In particular, the brand’s 30-minute or less offering, which has the broadest network coverage. More than 4,000 PIN codes are covered by the company’s nearly 2,000+ networked stores.

    Therefore, compared to other rapid commerce players, this has a far greater reach. JioMart has essentially changed its business strategy to deliver goods in less than 30 minutes.

    New Business Strategy to Expand Network

    Taluja claims that Reliance Retail is utilising its network of stores to deliver within a three-kilometre radius as part of the goal. JioMart will open dark shopfronts in a few niche markets.

    JioMart will also open some dark stores in areas where there is a real need, a sufficient volume, and the company is unable to fulfil it in 30 minutes.

    That’s the rapid commerce aspect of it, then. On a stand-alone basis, the company’s stores have experienced double-digit growth over the past few quarters. Thus, stores are expanding quite quickly as well.

    “We are not seeing that impact either in metro or in any other city,” he stated. In a same vein, Reliance Retail has introduced same-day and next-day delivery in 26 locations for its online fashion firm Ajio.

    “So, we are increasing the speed at which we are able to deliver the products,” he stated. Reliance Retail reported gross revenue of INR 3.30 trillion for the 2024–25 fiscal year, up 7.85%, and profit after tax of INR 12,388 crore, up 11.33%.

  • Zepto Adds More than 20 Dark Stores to its Operations in Tamil Nadu

    Beyond Chennai, Zepto, a fast commerce startup based in Bengaluru, has already established itself throughout Tamil Nadu. Coimbatore, Tiruchirappalli, Madurai, Vellore, and Salem are just a few of the districts in the state where the company has started operations. With more than twenty dark stores open in Tamil Nadu, each one well situated to maximise delivery within two to three kilometres, enabling partners to transport purchases in ten minutes while staying safe, Zepto is poised to solidify its position in the state.

    Going Vocal for Local

    Zepto users and other clients can purchase delicate coconuts and green vegetables from over 100 farmers in Tamil Nadu, including Palacode and Pollachi. This provides Zepto with a much-needed local connection. With its vibrant cities and high desire for convenience, the state of Tamil Nadu is a crucial market for Zepto, according to Divesh Sawhney, Chief Growth Officer.

    In addition to enabling sellers to serve customers more quickly, service expansion opens up new business prospects for nearby companies. He went on to say that the company is dedicated to strengthening our ties with the community while delivering speed, quality, and affordability to every home.

    Setting up Another Bench Mark

    Zepto Cafe, the company’s fast food delivery division, has exceeded one lakh orders daily. Aadit Palicha, the CEO and co-founder of Zepto, shared the accomplishment on social media, emphasising the Zepto Cafe’s expansion in the quick-service food (QSR) sector. In a post on X, Palicha claimed that Zepto Cafe currently receives 100,000 orders every day. Every day, Zepto Cafe receives 100,000 orders.

    That’s getting close to a steady-state gross margin of 50% and an annualised GMV run rate of $100M. “We still have a long way to go, but I think the QSR sector in India is about to undergo a revolution,” he posted. According to an article in a renowned media outlet, Zepto Cafe has been growing rapidly, launching 100 new locations each month. Zepto reported operating revenue of INR 4,454 crore in fiscal year 2024 (FY24), a 120% increase over FY23.

    Rapid Commerce Race is Getting More Intense

    The rapid commerce industry has evolved into a high-cash-burn sector, with companies allocating billions towards expansion and client acquisition. Industry estimates indicate that the aggregate monthly cash burn of rapid commerce entities, including new entrants, ranges between INR 1,300 and 1,500 crore—more than double in recent months.

    Despite nearing operational breakeven in Q2 FY25, Blinkit’s losses escalated in Q3 FY25, with operating losses rising to INR 103 crore from INR 8 crore in the preceding quarter. Swiggy reported a net loss of INR 799 crore, while Instamart had an adjusted EBITDA loss of INR 578 crore in Q3, compared to INR 358 crore in Q2.

    Zomato’s ability to continue investing in Blinkit stems from its financial stability. In November 2024, Zomato secured INR 8,500 crore in a qualified institutional placement (QIP) to enhance its balance sheet and finance its rapid commerce operations. As of December 31, 2024, Zomato possessed cash reserves amounting to INR 19,235 crore, providing adequate liquidity to support Blinkit’s expansion.

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