business
How dark stores make quick commerce possible
Aug 26, 05:08

The first iteration of grocery delivery was the marketplace model in which wares from neighbourhood stores would be listed on an app and a delivery executive would deliver the order. However, this model met with operational challenges as neighbourhood stores rarely have a digital catalogue and don't always keep sufficient inventory. This led to the dark store model. These are small warehouses which can hold anywhere between 2,000 and 4,000 stock keeping units (SKUs) and manned by 5-10 workers. They cater to online orders placed by customers in a radius of 2-3 kilometres. As such, they have become the central piece to fast deliveries or quick commerce.

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