Aadit Palicha, the co-founder and CEO of Zepto, has addressed concerns raised by critics about the impact of quick commerce platforms on traditional kirana (local grocery) stores in India. In an interview with Moneycontrol, Palicha vehemently rejected claims that quick commerce was hurting local mom-and-pop shops, describing such narratives as “false” and “without data.” Instead, he argued that the rapid rise of quick commerce in India is actually creating jobs and contributing to the country’s economic growth, particularly in terms of tax revenue generation.
Quick Commerce: A Boon for Jobs and Tax Revenue
The growth of quick commerce platforms, which aim to deliver groceries and essentials to consumers in as little as 10 minutes, has been a significant trend in the Indian e-commerce space. Companies like Zepto, Blinkit, and others have attracted considerable investment and attention. However, the sector has faced its share of criticism, especially from groups like the Confederation of All India Traders (CAIT), which argue that these platforms threaten the livelihood of traditional retailers by making it difficult for local stores to compete.
Palicha responded to these criticisms by highlighting the positive economic contributions of quick commerce. According to him, quick commerce platforms are not only generating a wide array of jobs—ranging from delivery executives to warehouse staff and tech professionals—but also creating significant tax revenue for the government. He pointed out that the rapid growth of the sector is contributing to the country’s formal economy, thus boosting overall tax collection, which in turn will benefit the nation’s fiscal health.
Additionally, Palicha made a bold statement, claiming that the quick commerce industry in India is poised to create more jobs in the next two to three years than Indian Railways, one of the country’s largest employers. This assertion underscores the significant employment potential of the sector, especially in light of India’s growing demand for instant delivery services and online shopping.
A Small Share of the Grocery Market
Palicha further addressed the concern raised by the Confederation of All India Traders (CAIT) regarding the impact of quick commerce on local grocery stores. CAIT has been vocal in its opposition, claiming that the growth of platforms like Zepto is driving local kiranas out of business. In response, Palicha pointed to a report from Datum Intelligence, which was cited by CAIT in its argument. According to the report, quick commerce platforms accounted for only $5 billion in grocery and household essentials consumption between FY23 and FY24, a small fraction of the total $46 billion market.
This data, Palicha argued, demonstrates that quick commerce platforms still represent a minor portion of the overall grocery market in India. He further suggested that rather than “killing” kirana stores, quick commerce is merely supplementing the broader retail ecosystem by offering consumers faster, more convenient shopping options. Many customers still prefer the personal touch and familiarity of local stores, and quick commerce platforms are simply catering to a different, more convenience-driven consumer segment.
Collaborative Growth, Not Competition
Palicha also pointed out that the rise of quick commerce platforms and the continued success of traditional kirana stores do not have to be mutually exclusive. He believes that both sectors can coexist, with quick commerce catering to the on-demand needs of consumers, while local stores continue to serve their loyal customer base. Instead of competing head-to-head, Palicha suggested that the quick commerce ecosystem might even benefit traditional retailers by driving innovation in the delivery and technology spaces.
Conclusion
Aadit Palicha’s defense of quick commerce highlights the broader positive economic impact of the sector, particularly in terms of job creation and tax generation. While concerns about the future of local kirana stores are valid, Palicha argues that the quick commerce segment is still in its infancy and accounts for a small share of the overall grocery market. Rather than being a threat, he views quick commerce as a complementary addition to the retail landscape that offers convenience to consumers while contributing to India’s economic growth.
