There is a lot of demand for dark stores these days, how can you make money from them?
Nowadays you would have seen that you order something online and the goods arrive at your home within 5-10 minutes. This type of service is called fast commerce. The place from where they operate for super fast delivery of goods is called dark store. These fast commerce companies like Swiggy Instmart, Blinkit and Zepto have opened dark stores in many places of big cities from where they offer super fast delivery. Their demand is also increasing rapidly. This can also become a good source of income for you. If you also want to make money from dark stores, let us tell you how it can be possible.
Demand for dark stores is increasing
Amid the surge in fast-paced commerce in the wake of the Corona pandemic, the demand for dark stores is on the rise in cities big and small. Swiggy Instamart announced on September 10 that it plans to expand to Tier 2 and 3 markets by increasing its network of dark stores. Amitesh Jha, CEO of Swiggy Instamart, said, “Our expansion to these new locations enables even more people to experience delivery of thousands of products in just 10 minutes.
Similarly, Blinkit said in its financial report for the first quarter of fiscal year 2024-25 that it plans to more than double its dark store network to 2,000 by fiscal year 2025-26 from about 639 at the end of June 2024.
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What are dark stores?
Srinivas N, MD, Industrial and Logistics, Savills India, said the dark store is a small urban warehouse distribution centre specifically for online shopping. Its area ranges between 3,000 and 8,000 sq ft and is located near densely populated residential areas to ensure prompt delivery.
Dark stores carry a wide variety of products and operate 24 hours a day. This provides quick access to inventory. Transportation costs are lower, delivery times are shorter, and delivery efficiency is improved.
Dark stores are located near dense residential areas to ensure timely delivery. Dark stores are usually located in basements of small commercial buildings, parking lots, and alleys. Apart from this, customers do not flock to these stores. Therefore, low-cost locations are the most functional for dark stores.
How can you win?
You don’t have to do much to make money with dark stores, you can rent a large space from companies like Zepto and fast commerce like Instmart. Or you can get products delivered to dark stores by acquiring their franchise. The dark store model is projected to generate revenue of $414.31 billion by 2033, up 30% from 2023.
