“Zepto Co-Founder Aadit Palicha Stands by Quick Commerce, Says It Generates More Jobs Than Indian Railways”

Aadit Palicha, the co-founder of quick-commerce platform Zepto, has strongly defended the rapid rise of quick commerce, claiming it does not harm traditional kirana stores and is, in fact, a net job creator. Palicha’s comments come amid ongoing debates about the impact of quick commerce companies like Zepto, Blinkit, Instamart, and BigBasket on local businesses.

In an interview with Moneycontrol, Palicha dismissed concerns that the growth of quick commerce is negatively affecting kirana stores, calling these claims “anecdotal” and “data-free.” He referred to recent data from the Confederation of All India Traders (CAIT), which highlighted that grocery and household essentials consumption had increased by $46 billion between the financial years 2022-23 and 2023-24. However, quick commerce platforms captured less than $5 billion of that share, with the remaining $41 billion benefiting traditional kirana stores.

“According to their own data, it’s impossible for quick commerce to have caused kirana stores to shrink,” Palicha stated. He further explained that even if quick commerce continues to grow at a rapid pace—projecting a 1,500% increase over the next five years—it would still only reach a $75 billion market. In contrast, industry reports from firms like Goldman Sachs and CLSA predict a $200-250 billion growth in consumption during the same period.

Addressing concerns about predatory pricing, Palicha clarified that only a small fraction of Zepto’s units—0.2%—were sold below the cost price of the manufacturer in 2023-24. He emphasized that quick commerce platforms, including Zepto, are contributing to a deflationary trend, providing customers with better pricing options.

The conversation also touched on the pricing of fruits and vegetables on quick commerce platforms, which are often 20-30% more expensive than what customers would pay at neighborhood stores. Palicha explained that the price difference is due to the higher quality of produce on quick commerce platforms. He pointed to Zepto’s mangoes, which are stored in refrigerated facilities with controlled moisture levels and are 100% carbide-free, ensuring higher standards than those available at local shops.

In addition to addressing pricing concerns, Palicha highlighted the significant job creation potential of quick commerce. He shared that the industry has created between 3-4 lakh delivery jobs, with Zepto alone employing about 1.14 lakh individuals. This growing sector is also formalizing the economy, he said, with Zepto contributing an estimated $300-400 million in direct taxes over the next 2-3 years. Overall, Palicha predicted that quick commerce will generate $1 billion in taxes for the Indian government during this period.

Palicha also pointed out that the wages of workers in the industry have significantly improved. Quick commerce platforms are paying delivery partners an average of ₹23,000 per month, a sharp increase from the ₹10,000-15,000 they typically earned before. He added that the employment generated by the quick commerce sector would surpass the job creation efforts of Indian Railways in the coming years, which he described as a major milestone to celebrate.

Palicha’s comments reflect a broader trend where quick commerce companies are rapidly gaining market share, while also contributing to the formal economy and providing a more efficient way for consumers to access groceries and household essentials. Despite some criticisms, Palicha and other industry leaders are confident that the growth of quick commerce will bring positive changes, both in terms of job creation and increased convenience for consumers.

Sources By Agencies

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