Magic on the move

The science fiction writer Arthur C. Clarke said that any sufficiently advanced technology is indistinguishable from magic. Take quick commerce, for example. Ten-minute delivery is a technological wonder at each step, from the retail app that nudges you to stock up on biscuits just before your daily chai craving kicks in, to the smart EV that rushes your Parle-G from the dark store to your doorstep before your kettle’s first whistle.

To the untrained eye, the quick commerce model may seem simple. However, the technology behind it is vastly complex — using data science, AI-based demand prediction models and route-planning algorithms, among other tools, to support large-scale business operations, optimise inventory and pricing, and rein in costs. But what delivers the goods for quick commerce, quite literally, are the software-defined EVs that seamlessly plug into this ecosystem. By transforming delivery economics and supporting the urgent shift to electrified last-mile mobility, smart EV fleets have become the true backbone of quick commerce in India.

Electric mobility: Accelerating Q-com’s dominance

Today, two of every three e-grocery orders in India are placed on quick commerce brands’ platforms. Brands have won over consumers’ hearts — and wallets — through two irresistible propositions: competitive prices and extreme convenience. Achieving this would have been very hard a couple of decades ago, but quick commerce companies have since become experts at cleverly using technology to continuously improve operational efficiency and revenue margins. Logistics, in particular, has been a key frontier of this innovation.

But why do we need smart vehicles for short-distance goods delivery when conventional options exist? The fact is, traditional ICE-based scooters and autorickshaws are ideal for daily commutes, but not for ferrying small orders over a 2-3 km radius. They often congest roads, incur high fuel and maintenance costs, lack connectivity features (making real-time monitoring difficult) and emit pollutants. Thus, they are less suited overall for sustainable last-mile logistics.

Smart goods mobility platforms enhance efficiencies on all these fronts. Let’s dive a little deeper into why they have found a product-market fit for quick commerce.

1. Purpose-built for hyperlocal delivery

Two-wheeler EVs built for quick commerce are the best way to move goods within neighbourhoods with homes, commercial zones, schools, etc. These areas typically feature narrower lanes and high pedestrian traffic, which makes them harder to navigate on larger vehicles. Lightweight goods mobility EVs can easily get around these areas without holding up traffic or taking up much parking space. Their cargo capacity of 15-20 kilos also ensures that smaller orders can be transported without the hazards posed by vehicle overloading. Yet another in-built safety measure is the top-speed limit of 25 kmph. Therefore, these sleek, silent and non-polluting EVs are designed to be city-friendly at every step.

2. Actionable field data

Smart mobility platforms provide actionable data that complements the expansion strategies of quick commerce firms. For these firms to scale up profitably and fulfill their promise of fast delivery, they must build dark stores near key demand hubs. This is where credible field data helps. New-age vehicle fleets equipped with GPS and IoT systems generate a gold-mine of information about demand and order patterns across neighbourhoods in a city. This input feeds into the brands’ own analysis and informs their decisions on store location and network-creation. 

3. Predictive repairs and maintenance

A two-wheeler delivery rider can easily cover a thousand kilometres in 10 days or less. With this volume of vehicle usage, proactive repairs and maintenance are essential to maintain fleet integrity and minimise disruptions to riders’ delivery schedules. This is harder to pull off with traditional and non-connected vehicles, where malfunctions could lead to delays that hit riders’ earnings and erode customers’ trust over time.

In contrast, software-defined fleets collect thousands of data points from each vehicle in real time. These diagnostics allow teams to quickly address the problem through over-the-air software fixes or by deploying field teams to swap faulty vehicles. Thus, predictive maintenance ensures greater uptime and business continuity for brands and riders.

4. Strengthening the rider pool

Quick commerce in India has thrived thanks to the massive order volumes that make this business viable. However, catering to this huge demand means that brands need a steady supply of delivery riders on the ground. Every month, shared mobility platforms draw thousands of aspiring gig workers from all corners of the country. By giving them access to an app-based, easy-to-learn, and affordable mobility platform, services not only grow the quick commerce rider pool, but generate sustainable livelihood opportunities for millions.

5. Solving for EV range anxiety

No EV rider wants to waste their time waiting at battery charging stations. However, new-age mobility platforms have solved this problem too. Most of them provide some form of battery swapping service, wherein a used battery is replaced instantly with a fully charged one. These one-minute swapping stations have already come up near most dark stores and demand hubs in most cities, and they are complemented by IoT-enabled charge tracking and in-app reminders which ensure that riders are never caught unawares. 

Although quick commerce players in other countries have had limited success, their Indian counterparts stand out for their brilliant use of technology to address the market’s needs. And as brands focus their energies on scaling up rapidly and staying ahead of the competition, smart mobility platforms give them an edge to build sustainable, resilient and future-ready businesses.

By Manjunath Athrey, Head of Engineering, Yulu