Q-commerce: Characteristics and Challenges

Recent innovations in retail business models have led to the emergence of new forms of on-demand hyper-local, or on-demand delivery services, that are known as quick commerce or Q-commerce. Q-commerce is a retail form that requires high population densities given the investment required in dark stores or ghost restaurants, related logistics, and e-commerce platforms/apps. There is a Q-commerce urban-rural divide as the business models are not viable in small towns or in rural districts. Q-commerce is dependent on the configuration of hyper-local service providers that are facilitated by a distributed network of local fulfilment centers. These centers include a blend of dark stores with physical stores. Q-commerce requires a highly localized and responsive urban logistics facility. There is a dark side to Q-commerce that includes business models that rely on self-employed riders who are part of the ‘gig economy’. Q-commerce also contributes to urban congestion, and this includes adding to air and noise pollution.