Mapping Success: The Role of Location in the Rise of Quick Commerce and Franchise Opportunities

In a less prominent part of Mohali in Punjab, popularly known as “Mataur,” nestled among small stores and mom-and-pop shops, a building with decent infrastructure has suddenly become the hub of bustling activity. Over 50 Blinkit delivery riders swarm the area daily, and the building now provides employment and wages to many in the neighborhood. This transformation is thanks to the rapid rise of quick commerce. Major quick commerce brands like Blinkit, Zepto, Swiggy and a few more are strategically selecting locations in metro cities as well as Tier 2 and Tier 3 towns, reshaping the real estate rental landscape of these areas. Their presence is not only boosting local economies but also driving significant changes in how these once-quiet sectors operate.

This surge is part of a broader trend, as quick commerce brands strategically select locations near densely populated areas to meet the growing demand for 10-minute deliveries. Emphasizing the importance of location selection, Himanshu Sharma, Vice President - Real Estate & Facility at Zepto, says, “Location is very critical for us. Our network design team meticulously manages all the properties we scout or shortlist. The selection of a property is based on the criterion of serving 80% of our customers within 10 minutes, while 20% can take 14-15 minutes. This way, we ensure our average delivery time remains 10 minutes.”

The opportunity in the fast-delivery segment is huge. According to Statista, the quick commerce market in India is estimated to generate a revenue of $3,349 million in 2024. This market is expected to exhibit a compound annual growth rate of 24.33%, leading to a projected market volume of $9,951 million by 2029.

The rise of quick commerce brands, whether operating as dark stores or warehouses, has led to a sudden surge in demand for properties strategically located near densely populated residential areas. These properties are specifically chosen to ensure they can serve customers within a 2.5-kilometer radius, meeting the promise of 10-minute delivery deadlines. This boom in real estate is reshaping local markets, as locations that were once overlooked are now prime spots for these operations, providing both convenience to consumers and driving economic activity in nearby neighborhoods. Therefore, investors or partners with strategic locations in highly populated catchment areas can become potential franchise partners for quick commerce brands.

“A lot of science and thought goes into selecting the right real estate and location, allowing us to fulfill our commitment to our customers,” Sharma adds.

Many quick commerce brands are now offering franchise opportunities to dark store operators, which is proving to be a very positive development. By franchising their operations, these brands are empowering local entrepreneurs to become part of the growing quick commerce ecosystem. This creates new business opportunities while ensuring faster expansion of services in key locations. This model benefits both the brands and franchisees, fostering local employment, enhancing service efficiency, and contributing to the overall growth of the quick commerce industry. Most of the quick commerce brands offer franchise opportunities.

Since dark stores do not interact directly with customers, another key factor in determining their location is the cost of warehousing and delivery. Delivery expenses depend on the average time taken for a round trip and the average distance covered, both of which are significantly impacted by the store's location. For an established dark store, delivery costs typically range from Rs 40-45 per order, while warehousing costs are about Rs 20-25 per order.