Retailers suggest 'Uber-like platform' to help Kirana stores compete with quick commerce firms

FRAI has highlighted the growing threat of quick commerce platforms like Swiggy Instamart, Zepto and Blinkit, and urged the government to enhance tech support

By  Mansi JaswalDec 24, 2024 5:29 PM
Retailers suggest 'Uber-like platform' to help Kirana stores compete with quick commerce firms
FRAI calls for govt support to protect Kirana stores (Image source: Moneycontrol)

Amid the boom of quick commerce players in the country, the micro, small, and medium retailers have sought quick intervention from the government. In an event held on Tuesday in New Delhi, the Federation of Retailer Association of India (FRAI), urged the government to enhance the technology support for Kirana stores to combat the competitive pricing model by quick commerce players like companies like Swiggy Instamart, Blinkit or Zepto.

The representative body of about India's 80 lakh micro, small and medium retailers highlighted the growing threat of organised players and emphasized that the rise of e-commerce and quick commerce platforms is jeopardizing existence of traditional Kirana stores.

However, they also acknowledged the shift in consumer preferences towards faster delivery and competitive pricing and expressed their willingness to adopt new technologies.

The retailers stressed that without government support to level the playing field, it would be difficult for small retailers to compete with the deep resources of larger e-commerce players.

The retailers suggested that the technology platform could take the form of an Uber-like platform where customer orders are allocated to the first Kirana store that accepts them. On the platform, ratings can also be provided to the Kirana stores which will encourage them to provide the best possible services to customers.

While outlining the technology platform for small shopkeepers, the retailers stressed that the present lot of quick commerce players or any big online player should be kept out of such a platform. Given their extensive resources, these big players could dominate such a platform, undermining the very purpose of supporting Kirana stores and leaving them once again at a disadvantage.

According to Abhay Raj Mishra, Member & National Coordinator of Indian Sellers Collective, "The technology support that the retailers are requesting can easily be created or facilitated by the government. Over the years, the present government has been a pioneer in providing citizens with essential services through technology by introducing world-first innovations like Aadhaar and UPI. With new technologies brought in by the government, like ONDC (Open Network for Digital Commerce), what is now required is a more focused approach in creating a specific solution for Kirana Stores that makes them as discoverable and accessible to customers".

After listening to the grievances of retailers, Praveen Khandelwal, Member of Parliament, Lok Sabha said, "I also fully understand the difficulties that Kirana stores are facing due to the rise of quick commerce players. These platforms are pushing near-expired goods, stale fruits and vegetables, and engaging in deep discounting and predatory pricing, all while operating through dark stores. We will take up these issues in the Parliament and beyond, to ensure that such practices are addressed and that Kirana stores are protected".

First Published on Dec 24, 2024 5:29 PM

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