Quick commerce companies slow dark stores buildout to control cash burn

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After a year of rapid expansion of dark stores, quick commerce firms are pulling back on adding such warehouses to control their cash burn. Real estate prices for dark stores had peaked a year ago but now players are renegotiating lease agreements, according to industry executives.

An exception is Blinkit, which is backed by parent rel=”dofollow” href=”https://economictimes.indiatimes.com/eternal-ltd/stocks/companyid-57948.cms” target=”_blank”>Eternal’s $2 billion war chest and plans to expand its network to 3,000 stores from 1,544 dark stores as of June 30. Rivals rel=”dofollow” href=”https://economictimes.indiatimes.com/swiggy-ltd/stocks/companyid-2232501.cms” target=”_blank”>Swiggy and Zepto, with cash reserves of $600-700 million each, have slowed down.

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Quick commerce companies slow dark stores buildout to control cash burn


After a year of rapid expansion of dark stores, quick commerce firms are pulling back on adding such warehouses to control their cash burn. Real estate prices for dark stores had peaked a year ago but now players are renegotiating lease agreements, according to industry executives.

An exception is Blinkit, which is backed by parent rel=”dofollow” href=”https://economictimes.indiatimes.com/eternal-ltd/stocks/companyid-57948.cms” target=”_blank”>Eternal’s $2 billion war chest and plans to expand its network to 3,000 stores from 1,544 dark stores as of June 30. Rivals rel=”dofollow” href=”https://economictimes.indiatimes.com/swiggy-ltd/stocks/companyid-2232501.cms” target=”_blank”>Swiggy and Zepto, with cash reserves of $600-700 million each, have slowed down.

Swiggy’s



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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