How Q-commerce can become a quick solution for India's job problem, ETCFO

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Q-commerce, or quick commerce, has the potential to become a major source of employment in India. While discussions around the industry often focus on its impact on local businesses, pricing strategies, and platform ownership, its role in job creation is worth exploring.

The sector is expected to generate half a million new jobs in India, having already created hundreds of thousands of employment opportunities. In the last quarter of 2024 alone, quick commerce companies hired approximately 40,000 workers to meet rising demand from festive shopping and e-commerce growth.

Job Creation and Workforce Expansion

Q-commerce has emerged as a significant employer, particularly for blue-collar jobs, by offering competitive wages. A large portion of India’s workforce remains in the informal sector, facing low wages and job insecurity. In this landscape, Q-commerce presents an alternative by providing salaries of around Rs 23,200 per month—40% higher than other industries. Since its inception, the sector has generated over 4.5 lakh jobs within just 36 months, and user penetration has doubled within a year.

The impact is not limited to Tier-1 cities such as Chennai, Pune, Bangalore, Mumbai, and Delhi, which have seen substantial hiring. Tier-2 cities like Chandigarh and Ahmedabad are also experiencing increased job opportunities, signaling the industry’s expansion beyond metropolitan areas.

Economic Impact and Market Growth

The quick commerce industry in India is currently valued at approximately $3.34 billion and is projected to reach $9.95 billion by 2029. The sector is growing rapidly, with a compound annual growth rate (CAGR) of over 4.5%. By 2025, the market size is expected to reach between $5 billion and $5.5 billion, demonstrating a CAGR of 10-15%. India had around 26.2 million q-commerce users across various platforms in 2024. Quick commerce sales in India have surged by over 280% in two years, with the industry’s Gross Merchandise Value (GMV) increasing from $500 million in FY 2021-22 to $3.34 billion in FY 2023-24, reflecting an annual growth rate of 73%.

Path to Workforce Formalisation

Q-commerce is playing a role in formalizing India’s workforce. Many workers who previously relied on multiple informal jobs now have structured employment opportunities. Additionally, q-commerce is fostering micro-entrepreneurship, allowing workers to own and operate dark stores. Companies are facilitating this transition by providing financial assistance and training programs to help individuals build sustainable businesses.

Addressing Socio-Economic Gaps

Q-commerce also has the potential to offer greater economic inclusivity. By increasing labor’s share of national income, the industry can expand employment opportunities for women, marginalised communities, and other underrepresented groups. While concerns about inequality in digital commerce persist, q-commerce’s hiring practices and accessible employment structures indicate potential for broader workforce participation.

Role of Technology in Job Creation

Q-commerce has the potential to serve as a rapid solution to India’s employment challenges. By offering higher wages, expanding into Tier-2 cities, and fostering entrepreneurial opportunities, the sector is contributing to workforce development and economic growth. Moving forward, policymakers and industry leaders must focus on ensuring equitable access to employment and sustained job creation in this evolving sector.