Quick Commerce - Ethical and Social Considerations

Though quick commerce as an industry is trying to enhance the customer experience and provide them ease, we see a lot of social and ethical considerations for the company that they can take a look at and provide solutions to. The considerations are as follows −

• Cartel or hoarding of goods by the Quick Commerce companies − operations of the Quick Commerce companies are possible because of the birth of dark houses, many delivery partners using two-wheelers, and the AI-driven inventory management system. However, this inventory management is creating social and ethical issues for the company. Since the Quick Commerce companies have to maintain stock in huge quantities in all their dark store outlets, they can make bulk purchases as one entity, thereby wiping off the entire market of goods. They form a cartel and make the survival of retailers impossible. They hoard goods in larger quantities so that companies with limited resources cannot purchase those items, and hence the customer has no option but to depend on the Quick Commerce companies.

• Promotion of impulsive buying − Since the entire decision-making process works on speed, this results in the impulsive buying of goods and services. Because of so much convenience, customers become blinded, and this results in their own loss. Companies might find impulsive buying profitable, but this is not necessarily good for the community as a whole. Companies cannot forget their duty towards nature and mankind just because they are running behind on profits. The government of Mexico has entirely banned the promotion of fast food to children on television because of the increasing number of obese people. This came as a huge blow to the companies, and hence, for long-term profitability, companies should care for their customers and the community they are in.

• A cause for rising inflation and consumption − It is difficult to keep tabs on the frequent small purchases that an individual makes, resulting in more spending than the earlier quota of customers. Previously, customers used to order the ration for a month in one go and try their best to survive in those limited circumstances, but now, with convenience, consumption has increased and so has spending. More spending and less savings are resulting in inflation in the economy.

• More road fatalities and accidents − There is a chance that delivery partners become reckless because of the limited time they get to deliver the products and hence compromise road safety, leading to more trouble than there was previously.

Companies should care about society and fulfill their social and ethical obligations because growing with people is the only growth that matters.