The Aakhya Weekly #159 | Who Delivers for the Kiranas?
In Focus: Making Room for Kiranas in India’s Q-Commerce Future
At 7 AM, a two-wheeler glides into a quiet residential colony with a packet of oats and a box of strawberries. By 11 PM, another one delivers diapers to a new parent in a high-rise. Rain, heat, or traffic– quick commerce arrives fast, predictable, and increasingly, everywhere. With the promise of groceries, essentials, and now even indulgences delivered in 10 minutes or less, it has become more than a convenience. It’s a habit, a reflex, and for many, a small relief in busy lives.
Led by Blinkit, Instamart and Zepto, and joined by Flipkart Minutes, BigBasket Now, JioMart and Amazon Fresh, quick commerce has scaled fast and wide. It now accounts for over two-thirds of all e-grocery orders and nearly a tenth of overall e-retail spending in India. The sector, currently valued at $2.8 billion, is projected to grow at more than 40 per cent annually through 2030. While it started with groceries, 15 to 20 per cent of total orders (GMV) now come from general merchandise, electronics and even apparel. The top six metros drive the bulk of volumes, but growth in smaller cities has helped build out demand.
What’s interesting is how Indian quick commerce has defied global trends. In the West, the model hasn’t worked this well. People often drive to mega-sized supermarkets, shop weekly, and prefer bulk buying. Delivery costs are high, and suburban sprawl makes 10-minute deliveries difficult to guarantee. India, by contrast, is better suited to the model—our cities are densely packed, labour costs are relatively lower, and a younger, tech-savvy population makes for a receptive market. It’s a case of infrastructure, demography, and habit coming together at the right time.
But that’s only part of the story.
The Kirana Store in the Crosshairs
In many Indian neighbourhoods, the local kirana is far more than just a store. It’s a trusted lender, a community anchor, and often a family’s primary livelihood. These shops operate on razor-thin margins and serve customers who may lack access to digital payments or formal banking.
When e-commerce first entered India, kiranas mainly seemed unaffected. Their hyperlocal reach, personal relationships, and flexibility gave them an edge. From modern trade and supermarkets to mom-and-pop shops, thelewalas, and kirana stores, India’s retail network supports over 8% of India’s workforce. Kiranas alone accounted for 92.6% of the estimated $617 billion grocery market in 2023.
This dominance, however, is slipping. Their share, once at 95% in 2018, is projected to fall to 88.9% by 2028. One report by Datum found that 46% of quick commerce users have consciously reduced purchases from kirana stores, with over 82% having shifted at least a quarter of their shopping to platforms like Zepto or Blinkit. The drivers for this shift are predictability, ease of use, and more choices provided by these platforms. Not to mention the irresistible pull of instant gratification, as 75% of buyers reported a rise in impulsive shopping within just six months.
Quick commerce platforms have brought in bulk buying power, sophisticated logistics (through dark stores), and aggressive discounting, which are advantages most kirana owners can’t match. While many have adapted in small ways, such as displaying UPI QR codes, taking orders via WhatsApp, filing GST, or using basic digital tools, full integration into the digital economy is still limited. While over 80% of kirana owners say digitisation is important, and 84% have taken steps toward it, many remain wary. And not without reason. In Karnataka, GST notices linked to UPI transactions triggered panic among small traders, leading many to stop accepting digital payments and revert to cash. For them, going digital felt like an added risk, not an opportunity.
Efforts in Motion, but Still Scattered
The Indian government has made early efforts to support retail digitisation through initiatives like the Open Network for Digital Commerce (ONDC), which aims to unbundle e-commerce and give small retailers a level playing field. Pilots have been launched in various cities to onboard kiranas onto the network, allowing them to sell online without relying on dominant platforms. Schemes like PM SVANidhi have supported street vendors with working capital and digital onboarding, and similar models could be expanded for kiranas. On the other hand, some private players such as Kiko Live and KiranaPro are onboarding kirana stores onto ONDC, helping them digitise operations and boost visibility. At the same time, FMCG giants are tailoring product strategies, offering exclusive SKUs to kiranas, to keep them competitive. However, much of this work is still fragmented.
Quick commerce platforms are coming under growing pressure. A Parliamentary Committee has asked the Competition Commission of India to spell out how it’s protecting small retailers from deep discounting and other unfair tactics. Meanwhile, the All India Consumer Products Distributors Federation (AICPDF) has formally accused large players of using private labels and foreign funding to push kiranas out of the market. With investment experts warning that up to 25-30 per cent of kiranas could be at risk, the call for stronger guardrails is getting louder.
A Coexistence Worth Building
The question now isn’t whether quick commerce will continue growing—it almost certainly will. The question is whether kiranas and traditional retail can coexist and thrive alongside it. That will require a mix of policy, market innovation, and targeted support.
First, digital infrastructure needs to be made more reliable, especially for payments. While UPI penetration has grown significantly, digital access remains patchy across geographies, with kirana stores in smaller towns and semi-urban areas often facing challenges such as unstable connectivity, limited access to smartphones, and low confidence in using digital tools.
Second, kiranas need capacity building, not just tech onboarding. Kirana owners need sustained support to adopt and use digital solutions effectively, which means training them to manage digital inventory systems, interpret basic analytics, respond to online customer queries, and adapt to newer consumer behaviours. Just giving them an app isn’t enough; what’s needed is real support to use it well.
Platforms, for their part, must be encouraged through both market logic and policy nudges to move away from displacement models and instead co-create value with local retail networks. Flipkart, for instance, has piloted models where local stores serve as fulfilment points, and such integrations can be scaled further to ensure kiranas have a tangible stake in the evolving supply chain.
Finally, any serious effort to support kiranas must begin with credible data. A government-led digital survey and impact assessment would help identify which segments of traditional retail are most vulnerable to the rise of quick commerce, what kind of disruptions they are experiencing, and which interventions, be it incentives for electricity and rent, shared logistics infrastructure, or access to working capital, would make the most difference.
India doesn’t need to pick between kiranas and quick commerce. It does need a plan, however, to make sure they both have a place. Q-commerce brings genuine value to busy urban consumers, creates new jobs in logistics, and builds efficiencies in supply chains. But if left unchecked, it risks doing what most disruptions do—leaving behind those who lack the means to catch up. With the right nudges, the two can coexist, even complement each other. The clock is ticking, not just for deliveries, but for inclusive, thoughtful growth.
Top Stories of the Week
India Post Shifts Gears to Speed Post Nation
India Post is set to discontinue its Registered Post service from September 1, 2025, integrating it with Speed Post as part of a modernisation initiative to enhance efficiency and streamline operations . This marks the end of a trusted service that has served millions for over five decades, known for its reliability and affordability. The decision stems from a significant decline in usage, largely due to digital communication and competition from private courier services.
The merger aims to provide faster delivery, improved tracking accuracy, and greater operational efficiency under the unified Speed Post system. While key features of Registered Post, such as secure handling, proof of delivery, and addressee-specific delivery, will continue as value-added services under Speed Post, concerns have been raised about affordability. Speed Post fees start at ₹41 for up to 50 grams, compared to Registered Post’s ₹25.96, impacting affordability for small businesses and rural residents.
Two Major Maritime Bills Passed in One Day in a Landmark Moment for Indian Shipping Law
On August 6th, Parliament passed two landmark maritime reform bills aimed at modernising India’s shipping laws and aligning them with global standards. The Merchant Shipping Bill, 2025, passed in the Lok Sabha, replaces the outdated Merchant Shipping Act of 1958. This progressive legislation is designed to streamline maritime governance and enhance India’s standing as a trusted hub for global maritime trade.
Meanwhile, the Rajya Sabha cleared the Carriage of Goods by Sea Bill, 2025, which repeals the nearly century-old Carriage of Goods by Sea Act, 1925. The new law adopts the internationally recognised Hague-Visby Rules, already followed by countries such as the United Kingdom. This move is part of the government’s wider push to eliminate colonial-era legislation, improve ease of doing business, and bring legal clarity to sea cargo movement. Together, these reforms aim to reduce legal ambiguities, lower the risk of litigation, and improve transparency and commercial efficiency in the shipping sector. These factors are extremely critical for a country like India, which has a growing maritime economy.
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