Digital Disruption and the Informal Economy: A Study of the Economic Sustainability of Vegetable Vendors in Mumbai

This study examines the impact of online grocery delivery platforms on the economic sustainability of local vegetable vendors in Oshiwara, Andheri West, Mumbai. Based on six months of primary field research, the paper documents a 24.7% decline in weekly customer footfall for vendors following the proliferation of digital grocery services. Using measures such as price elasticity of demand and income volatility analysis, the findings reveal that traditional vendors face increasing economic vulnerability in the face of changing consumer preferences and market structures. The research highlights the broader implications for India’s informal sector, which continues to serve as a critical source of employment and low-cost food supply. The study underscores the need for balanced policy interventions to ensure that digital retail growth does not exacerbate inequality, but rather coexists with and supports informal livelihoods.