Uber, a ride-hailing platform, has been focusing on strengthening its hyperlocal deliveries from neighboring stories, as per a report by the Economic Times. This service has already been launched in nine cities in India by the company.
As per the report, the company intends to also collect payments from customers on behalf of the retailers in the future. Uber only provides item delivery at this time; customers have to pay the retailer directly.
The store pickup service offered by Uber is something that is already available in the USA. Under the Uber Pickup Service, similar to how they track rides, customers may order pickups and deliveries live using the Uber app. Platforms Rapido, Dunzo, and Swiggy, which provide comparable services to let users pick up their items from nearby stores, are expected to compete with Uber's Store Pickup.
However, currently, Dunzo has been struggling with its own finances. The hyperlocal delivery company was served a notice for outstanding dues totaling Rs 4 crore by the National Company Law Tribunal (NCLT), which threatened to impose a moratorium on the business if it did not respond swiftly.
As per the report, a source said, “Uber is starting with delivery of prepaid items from neighborhood kirana shops, departmental stores, pharmacies, and several other use cases, but the product will be expanded where it would collect from and make the payments on behalf of the customer to the shop.”
Flipkart is also trying to enter the quick commerce segment. As of now, the e-commerce giant has not yet disclosed the number of cities in which it intends to launch the project or the delivery timetable it has in mind.
The quick commerce segment in India is growing. According to a Redseer report, India's quick commerce sector has been expanding at a rate of 77 percent year over year to reach $2.8 billion in GMV (gross merchandise value) in 2023. Similarly, as per a recent Bain & Co. report, quick-commerce orders have risen in India over the past year and now make up 40–50 percent of the country's e-grocery spending.
Regarding the recent development, a spokesperson from Uber told the Economic Times, “Store pickups are a new addition to our package service where users can request an Uber driver to pick up the prepaid items from a store. Store pickups will give customers the option to pick up any store in serviced areas so long as they share its location and make the payment directly.”
