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FRAI Seeks Government-Backed Order-Routing Platform to Help Kirana Stores Compete With Quick-Commerce

FRAI cites steep kirana sales declines tied to deep discounts, fast delivery promises, heavy marketing, dark‑store expansion.

Overview

  • Marking the 9th National Retailers Day in New Delhi, FRAI publicly appealed for urgent government support for small retailers facing pressure from e-commerce and quick‑commerce players.
  • The body proposes a Bharat Taxi–style digital system that routes customer orders to nearby kirana shops, awarding the order to the first store that accepts it, with an optional customer‑rating feature.
  • FRAI urges enhancements to ONDC for small sellers, including easier onboarding, practical digital training, standardised service levels, stronger logistics partnerships, better seller incentives and a unified rating and trust system.
  • Citing market studies, FRAI says roughly two lakh kirana stores closed last year as shoppers shifted to quick‑commerce services such as Blinkit and Zepto.
  • A December 2024 JP Morgan study referenced by FRAI reported 60% of offline grocery stores in Mumbai saw sales drop where dark stores proliferated, and the group warns many shop owners are being pushed into gig delivery roles with unstable incomes.