As the quick commerce sector expands rapidly, companies face increasing challenges related to fraud and trust. Leading players like Swiggy, Zomato, Blinkit, and Zepto are proactively engaging with identity verification firms—such as IDfy, Bureau, and Equal—to enhance background checks on delivery personnel. This strategic collaboration not only aims to curb fraud but also to build a more trustworthy operational framework in the burgeoning instant delivery ecosystem.
In the gig economy, where workers can easily join platforms, the verification of identity documents has always been a prerequisite. However, the focus on robust verification processes has intensified. These firms employ advanced technologies to validate documents and assess the behavioral patterns of applicants throughout their assignments. Keshav Reddy, founder of Equal, emphasized the shift in perception towards identity verification as a strategic asset. He noted, “We are seeing the emergence of trust as a competitive differentiator, as institutional investors increasingly factor robust identity verification frameworks into their due diligence processes.”
The verification process typically involves several steps. A potential delivery worker scans a QR code at an enrollment center, takes a selfie, submits identity documents, and provides details such as two-wheeler registration for real-time verification. The use of machine learning models is crucial here; they match the submitted details with a government database and ensure that the selfie aligns with the image on the identity card. Further, an applicant’s social score is derived from multiple government databases to assess eligibility.
Despite stringent checks, over 90% of applications may pass through without any complications. However, around 10% might need additional scrutiny, with a small fraction ultimately being rejected. This emphasizes the importance of a thorough vetting system, given the high stakes involved in recruitment for quick commerce.
Ranjan R Reddy, CEO of Bureau, pointed out that the industry is increasingly adopting machine learning technologies to evaluate identity documents. Additionally, there is significant investment in detecting face-matching and voice-based fraud. Startups like Bureau and IDfy, initially catering mainly to banking and financial services, now derive a substantial portion of their business—15% to 30%—from e-commerce clients. Bureau has engaged with nearly 40 online commerce businesses out of a total of 150 partner firms.
The rise of dark stores has added complexity to fraud management. Instances of collusion fraud within a single day have reportedly reached over ₹8 crores, raising questions about the viability of dark stores. Such alarming figures underline the urgency for quick-commerce businesses to enhance their background verification processes diligently.
Wriju Ray, Chief Business Officer of IDfy, highlighted the rising apprehension among brands regarding reputation risk as the sector becomes more structured. “There is a greater intent among these firms to employ instant checks at their enrollment centers,” he stated. Though identity verification firms predominantly serve the banking sector for Know Your Customer (KYC) requirements, the demand for background checks from e-commerce stakeholders is on the rise.
It is essential to recognize that the qualification standards for workers in food delivery differ significantly from those required for financial sectors. Thus, while the core underwriting principles remain similar across industries, the scoring methodologies cater specifically to the unique needs of the businesses being serviced.
In conclusion, the quick commerce sector’s collaboration with identity verification firms illustrates a crucial step towards ensuring trust in an increasingly competitive landscape. As these companies prioritize robust verification systems, they not only protect their brand reputation but also contribute to a safer environment for consumers and workers alike.
E-commerce businesses, especially in quick commerce, must realize that investing in identity verification is no longer merely a regulatory requirement; it’s a strategic differentiator that can set a brand apart in a crowded market.
