Quick Commerce is Effective, But is it Sustainable?

Can you share your journey so far in terms of your career?

My journey has been smooth so far. I wouldn’t call it a rollercoaster. I have experienced the corporate world, and that too after completing my PhD. When comparing the life of a corporate professional to that of an academician, one thing I must add is that in the corporate world, you become a slave to time. As an academician, you are the master of your time, but you end up becoming a slave to your needs.

In corporate life, time dictates everything — you have to be in the office on time and deliver on time. While we, as academicians, also have to reach our classes on time, our work is not as time-bound. There’s a certain flexibility in how your day unfolds.

This flexibility allows you to go beyond traditional boundaries and shape yourself into what you want to become. That, in a way, is beneficial because it helps you explore and grow.

How has your corporate experience transformed your classroom teaching?

That’s an interesting question. I worked as a senior business consultant in a company called JDA Software, now Blue Yonder. During my time there, I interacted with many seniors in the organisation, attended several training sessions, and gained valuable insights.

One advantage of this experience is that, while teaching in the classroom, I don’t have to restrict myself to traditional methods of relying solely on textbooks. I can draw on my corporate experience, incorporating real-life case studies and concepts from client projects.

For instance, I just came from a demand forecasting class where I recalled concepts I encountered during my corporate tenure. These were not just taught by industry stalwarts but also by great academicians. Without my corporate background, I wouldn’t be able to bring such perspectives to the classroom.

Quick commerce has become a buzzword today. Many companies are venturing into this space. What are your views on quick commerce?

Whether quick commerce is a buzzword or not, well, I both agree and disagree. I recall seeing an ad from a company promising deliveries in 10 minutes. That felt strange to me.

When it comes to food delivery, not everyone orders food daily, but grocery items are different. Consumers need groceries on a day-to-day basis. Even if people buy in bulk from supermarkets, there are always small, perishable, or forgotten items, the need for which may arise suddenly. Quick commerce is effective for addressing these needs.

However, the sustainability of quick commerce is questionable. Quick commerce players operate through dark stores. To improve responsiveness, they need more dark stores, but this increases costs — rent, maintenance, and safety stock. Centralised storage reduces costs but compromises on responsiveness.

Regarding kirana stores, their existence is under threat. But will they completely disappear? I don’t think so. Many people feel a sense of loyalty to their neighbourhood kirana stores. For older generations, these stores are also places for socialising.

In the future, quick commerce players and kirana stores could collaborate. For example, kirana stores could serve as dark stores, reducing costs for quick commerce players. Models like BOPIS (Buy Online, Pick Up In Store) and BORIS (Buy Online, Return In Store) could also help both systems coexist.

How has AI impacted supply chain management in quick commerce?

AI, particularly machine learning, is transforming supply chains. In the past, a kirana store owner would know what a customer needed. AI replicates this by analysing click data and cookies to offer personalised recommendations.

However, privacy concerns are growing. Consumers are becoming more privacy-conscious and may prefer subscription-based models over ad-based ones. Governments are also imposing stricter data protection regulations.

This shift could limit data sharing and personalisation, potentially bringing back a preference for traditional kirana stores that offer personalised services without invading privacy.

You’ve explored game theory in your research. Could you explain it in simple terms?

A disclaimer — I’m not a game theorist, but I have used game theory in my research.

Game theory applies to situations where one entity’s decisions affect others, and vice versa. For example, in supply chains, manufacturers and retailers interact strategically, and outcomes depend on their decisions. Game theory helps model and analyse these interactions.

For instance, in decentralised supply chains with manufacturers and retailers, strategic decisions at each level impact the overall supply chain outcomes. Game theory helps in modelling these interactions and optimising decisions.

You’ve written a research paper on EV infrastructure investment. What is the ideal way to address this issue?

One major challenge in the EV sector is range anxiety — consumers worry about running out of charge. To address this, we need more charging stations.

The question is: who should invest? Governments provide universal chargers, while manufacturers like Tesla often prefer proprietary systems to avoid free-riding by competitors.

Interestingly, Tesla recently decided to open its chargers to competitors. This could be for multiple reasons: expanding the market, increasing revenue, or capturing operational data from rival EV batteries. This data can help Tesla improve its products, creating a long-term advantage despite short-term losses.

Finally, as a professor with corporate experience, what advice would you give to today’s students?

This is a golden period for students. Whatever passions or hobbies you have, pursue them now, because once you enter the corporate world, you may not find time for yourself.

Build yourself during this time. Learning will always be there, but this is the phase where you can truly explore and grow. Remember, the corporate world can be harsh, and you may have little time for personal development once you step into it.