Impact of Hyperlocal Delivery Apps on Small Businesses in Gujarat: A Study on E-commerce Disruption and Local Retail Dynamics

Abstract : The Indian retail sector is rapidly evolving with the rise of hyperlocal delivery platforms like Zepto, Swiggy Instamart, and Blinkit. These platforms use real-time inventory, geo-tagged logistics, and AI to offer ultra-fast delivery, meeting the growing demand for convenience among urban consumers. According to a 2023 Redseer report, this market grew by 65% year-on-year, with over 20 million monthly active users. This study, based on secondary research, explores the impact of this digital shift on small retail businesses in Gujarat, known for its kirana store network and entrepreneurial roots. Findings show that younger consumers are moving toward app-based shopping, causing footfall and pricing pressures on local retailers. Despite growing digital payment use, platform adoption among small vendors remains low due to high commissions and operational barriers. Yet, older consumers still trust kirana stores. Some retailers are adapting through WhatsApp orders and local platforms. The study calls for inclusive digital policies to support this transition.