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Does a quick commerce order make money, and how busy must a dark store be?
You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.
Case timer
00:00
1. Read the prompt aloud
Read it slowly, then pause. Let the candidate ask questions before they structure.
An illustrative quick commerce player in India has an average order value of INR 600. It earns an 18 percent margin on goods, advertising income worth 3 percent of order value, and a delivery and handling fee of INR 15 per order. Per order it pays INR 45 to the rider, INR 7 for packaging, 1.5 percent of order value in payment fees, and INR 20 in discounts. Each dark store has fixed costs (rent, staff, power) of INR 18 lakh a month. What is the contribution per order before store costs, and how many orders a day does a store need to break even? Use a 30-day month.
2. Answers to clarifying questions
This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.
3. A model structure
Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.
- Store profit = orders x contribution per order minus store fixed costs
- Income per order: goods margin, advertising, customer fees
- Variable costs per order: rider, packaging, payment, discounts
- Break-even orders = store fixed costs / contribution per order
4. The working, step by step
Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.
Step 1: Goods margin
What a strong candidate does: 18 percent of INR 600.
Goods margin per order (INR): 600 × 0.18 = 108
Step 2: Advertising income
What a strong candidate does: 3 percent of INR 600.
Advertising per order (INR): 600 × 0.03 = 18
Step 3: Total income per order
What a strong candidate does: Add the customer fee of INR 15.
Income per order (INR): 108 + 18 + 15 = 141
Step 4: Variable costs
What a strong candidate does: Rider 45, packaging 7, payment 1.5 percent of 600 (which is 9), discounts 20.
Variable cost per order (INR): 45 + 7 + 600 × 0.015 + 20 = 81
Step 5: Contribution per order
What a strong candidate does: Income minus variable costs.
Contribution per order (INR): 141 - 81 = 60
Step 6: Break-even orders a month
What a strong candidate does: INR 18 lakh is INR 1,800,000.
Break-even orders per month: 1,800,000 ÷ 60 = 30,000
Step 7: Break-even orders a day
What a strong candidate does: Divide by 30 days.
Break-even orders per day: 1,800,000 ÷ 60 ÷ 30 = 1,000
The recommendation to listen for
At the end, say: "The CEO walks in. What is your recommendation?"
The company should open dark stores only in areas that can reach about 1,000 orders a day, because each order contributes about INR 60 against INR 18 lakh of fixed cost per store each month. First, income per order is INR 141 against INR 81 of variable cost. Second, this means a store needs 30,000 orders a month before it earns anything. The risk is that new stores take months to reach mature volume, so a young network loses money. As a next step, grow basket size, cut the INR 20 discount and track orders per day by store.
Risks a strong answer names: Rider cost rises at night, in rain, and during peaks; New stores take months to reach mature volume, so a young network loses money even if each mature store is profitable.
Score the candidate
Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.
This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?
Total
0 out of 25
Score all five criteria to see the band and the feedback template.