Tag: delivery

Behind the Scenes: How Swiggy Runs and Earns | Swiggy Business Model | How Does Swiggy Make Money

The business of restaurants and cafes has taken on a new form thanks to the online meal delivery service. Customers now have access to an enormous array of options in addition to improved connections to regional and global food chains thanks to this system. At the moment, Swiggy and Zomato are the two industry titans; while numerous other businesses attempted their hand at this market, they were unable to compete with these titans. In addition to being the biggest online food ordering and delivery service in India, Swiggy is also the number one unicorn startup in the country. Since its launch in August 2014, it has more than five lakh app installations, partnerships with over 1,50,000 restaurants, and has a strong presence in more than 325 cities across India.

Swiggy pioneered quick pick-and-drop meal delivery services to ease people’s lives. It provides a single window for placing orders from a wide selection of restaurants and a complete meal ordering and delivery system that links local restaurants with food enthusiasts.

They have revolutionised and broken all barriers pertaining to food delivery. From a time when we had to travel, order, and wait to get our favourite food parcelled, today we have grown so much through apps like Swiggy to have high favourite delicacies delivered right in front of our doors. This article will look into the business model that has helped Swiggy gain a place in the market.

Through this article, we will understand the whole ecosystem of Swiggy’s business, right from what business model it follows to how it makes money, we will put a magnifying glass on each of its developments.

About Swiggy

The Bangalore-based business Swiggy was founded in 2014 and has already spread to over 100 Indian cities. Swiggy, which was founded by Rahul Jaimini, Nandan Reddy, and Sriharsha Majety, has a vast national business network. As food ordering and delivery giants, they are currently expanding their digital presence by introducing a variety of platforms and expanding their services in response to circumstances such as “when you prefer not to dine out, they bring the restaurant to you.” In the ongoing competition between Swiggy and Zomato, the app’s features are consistently attracting customers to place orders with Swiggy. Customers may keep tabs on their orders, get real-time updates, talk to customer service, pay with cash on delivery, find incredible bargains, and so on. People from the working class and students love Swiggy because they don’t have much time to cook for themselves.

For example, Swiggy Pop is a 30-35-minute meal delivery service for a single serving. Swiggy offers a variety of products and services to its customers. The Swiggy POP menu offers several dishes such as Asian combos, burgers, bowl meals, biryanis, and Indian thalis. All single-serve meals priced between Rs 99 and Rs 200 will be delivered quickly.

Swiggy Business Model

While Swiggy’s primary revenue generator is its commission model, the company does have other verticals that contribute to its success. It uses cutting-edge methods and technology to meet the market’s increasing need for foodies. In addition to being a model of efficient and effective customer service, it also follows all the latest trends in the restaurant industry.

It connects establishments with customers who are looking to eat. It runs well on a dual partnership basis, which is good news for eateries and grocery shops that want to use the platform for food delivery.

Swiggy’s business model focuses on localized, on-demand meal delivery. In addition to connecting eateries, it coordinates a network of delivery partners to provide customers with their meals whenever they want them (within 30 minutes).

Similar to Uber, Bundl Technologies Private Limited built this unicorn startup’s business model around a dual partnership arrangement.

Cooperating Restaurants: Restaurant partners are businesses that have agreed to deliver to Swiggy app and website users.

Collaboration with Delivery Partners: Individuals in the delivery fleet are in charge of picking up the order from the partner restaurant and delivering it to the final customer.

Swiggy’s entire business ecosystem runs on commission, delivery charges, subscriptions, restaurants, and cloud kitchens.

Business Model Canvas of Swiggy

Let’s understand the Business Model of Swiggy in detail:

Key Partners of Swiggy

The major partners that drive Swiggy forward are the restaurants and shops that sign up to have their enterprise enter into food delivery services.
Other than eateries, Swiggy also partnered with pharmacies, groceries, et cetera through their platform. Today, Swiggy Mart is a very important part of the company.
Recently, they had also partnered with Instagram to allow users to use Instagram’s food order stickers in their stories. These stickers will help the viewers of such stories to order similar things from Swiggy.

Key Activities of Swiggy

The most important activity that Swiggy has to undertake is to acquire customers and manage their orders in real-time. This is accompanied by handling delivery and payment processes simultaneously.
Having a very efficient partnership with retail shops, restaurants, and other eateries is an unavoidable part of Swiggy. Swiggy Go fulfills another important activity of pick-up and delivery as well.
Having a sound technical system is a very important part of Swiggy since multiple aspects need to be addressed at the same time while an order is being placed.
Management of these technical operations, maintaining an efficient IT infrastructure, and proper updation of the system are other important activities of Swiggy.

Key Resources of Swiggy

The key resources of Swiggy are the local partners like Keventers, Yogidthaan, and Biriyani Blues tea, which are bestsellers in the cities.
Delivery providers and technology providers are other key resources of Swiggy, which have played a very significant role in strengthening its system.
The resources of Swiggy are expanding as it continues to reach out to more places and more untapped markets.

Value Proposition of Swiggy

Swiggy’s policy of no restriction is one of the main value propositions of the firm.
It also has a very robust online payment system, which has made the entire food ordering journey easier for the customers.
The no minimum order policy has also helped in reaching up to 14 million orders per month, while many orders amounted to less than a hundred rupees.
The Swiggy app’s other main value proposition is that it has given its platform to restaurants and stores to use.
It has helped both Swiggy and its partners to save more than 30% of their operational costs.
Recently, they also launched Swiggy Go, wherein they offer instant pick-up and drop services, which can be utilized by customers to send any kind of packages, documents, parcels, or even tiffin.
They also have digital wallets by partnering with companies like PhonePe, Paytm, FreeCharge, etc.

Customer Relationship of Swiggy

Swiggy, being an expanding company, needs to have a very efficient customer relationship to ensure long-term growth. Hence, it has active customer support at the perusal of user.
Apart from a 24*7 telephonic system, they also have chat services.
Being active on social media, customers can also send messages to Swiggy’s social media pages, where they usually reply promptly.
It also allows you to rate the places and food delivered by Swiggy.

Channels of Swiggy

Swiggy can be accessed in multiple ways. Various channels on Swiggy include their mobile apps and websites, which are available on both Android and iOS.
Their recent additions to Swiggy Stores and Swiggy Go are the new channels of the firm.

Customer Segment of Swiggy

The people who prefer dining in their own homes but do not want to cook their own food are the main customer segment of Swiggy.
From the people who wanted food to be delivered at their doorsteps being principal customers, we can see a shift to the people who not only want food delivered but also things like groceries, gifts, flowers, medicines, etc, coming into the central stage of customer segments.

Cost Structure of Swiggy

Swiggy also has to incur a lot of expenditure daily to ensure the proper functioning of the app and websites.
They have to incur the expenses of their employees and delivery partners. This is apart from the 2 or 3% commission that Swiggy gives to restaurants that partner with them.
They also have to bear the cost of website and app development, along with maintenance charges.
Advertisements, marketing, and administration create huge expenses as well. Swiggy also has to bear the cost of other miscellaneous expenses, including returns and refunds.

How Swiggy Makes Money | Swiggy Revenue Model

Swiggy Financials 2024

Swiggy Financials	FY23	FY24
Operating Revenue	INR 8265 crore	INR 11247 crore
Total Expenditure	INR 12884 crore	INR 13947 crore
Procurement Costs	INR 3381 crore	INR 4604 crore
Employee Benefit Expense	INR 2130 crore	INR 2012 crore
Advertising Expense	INR 2501 crore	INR 1851 crore
Delivery & Related Charges	INR 1694 crore	INR 1637 crore
Net Loss/Profit	INR -4179 crore	INR -2350 crore

Swiggy reported a 36% rise in operating revenue to INR 11,247 crore in FY24 ahead of its IPO and reduced its losses by 44% to INR 2,350 crore. Swiggy’s total expenses rose from INR 12,884 crore in FY23 to INR 13,947 crore in FY24.

Swiggy was an early player in the Indian food delivery market because of its innovative business approach, which has allowed it to diversify its revenue streams and become a market leader. Upon analyzing the activities of Swiggy over the years, one can observe that their revenue streams are increasing. This is indicative of the company’s very stable and long-term growth. The pandemic restrictions on dine-in services have further helped Swiggy to get the extra push it needed. Below are the Swiggy revenue streams through which the company earns and runs.

Delivery Charges

Since there is no minimum order amount for delivery on Swiggy, the app frequently receives orders below Rs 100. Owing to this, the logistics cost of such orders increases. Therefore, as Swiggy established a dominant position in the market, it began charging delivery fees for small orders, the exact amount of which varied by city. Customers are Swiggy’s primary source of revenue. If a customer’s order total is less than Rs. 250, the business will charge them for delivery. The fee for each order ranges from twenty to forty rupees.

Commission

Another significant portion of the income comes from commissions, which Swiggy gets. In exchange for delivering restaurants’ food orders through the Swiggy app and generating sales leads, it receives commissions from such eateries. Every order placed through Swiggy’s site costs a 15% to 25% fee for restaurants. Restaurants receive perks on this account, such as more exposure and, on occasion, a 2% to 3% reduction in commission.

Swiggy also uses many methods to earn money from advertisements. It displays advertisements for a variety of restaurants on its application and charges a fee to promote them in multiple regions. On top of that, Swiggy charges certain establishments a premium to have their names shown higher on the app’s list of available places to eat. Banner ads and priority restaurant listings were the two main ways that Swiggy began to commercialize its platform. Following in the footsteps of Zomato and Foodpanda, Swiggy has just begun using banner ads. Their website and app feature regionally specific restaurant promotions and listings. The pricing for different regions on the displayed page varies according to the restaurant’s desired level of visibility through the banner ad.

Swiggy Access

Just lately, Swiggy debuted Swiggy Access, a facility similar to a central kitchen base that holds the kitchens of several restaurants, including Swiggy’s own labels. Restaurants will be able to set up kitchens in locations even when they’re not physically there, thanks to this cloud kitchen business concept. From its humble beginnings in Bangalore, the chain has grown to include 36 kitchens across 30 locations in Hyderabad, Kolkata, Delhi, and Mumbai.

Table Reservations

Swiggy has made partnerships with several high-end restaurants. When customers reserve a table at one of these restaurants, Swiggy charges a commission to the restaurant. Additionally, customers are required to pay a nominal booking fee to Swiggy.

Quick Commerce

Through its Swiggy Instamart app, Swiggy has recently expanded into the online grocery delivery area. The company operates this business through its delivery partners and has established partnerships with numerous grocery retailers. The company retains a commission on each order from the grocery store, while the client is charged with delivery and handling fees.

Swiggy Super

A new membership program called Swiggy Super has just been introduced by Swiggy. Swiggy does not impose surge pricing, requiring the consumer to pay a set amount, and offers limitless free delivery on orders above Rs 99. An introductory price of Rs 49 for a one-month membership and Rs 129 for a three-month membership are the two available alternatives, with the former costing Rs 149 and the latter Rs 349.

Swiggy Go

Swiggy, a frontrunner in the delivery space, uses “Swiggy Go” as an income generator. With its 2019 launch, it provides clients with an immediate pick-up and drop-off service. The service enables users to select, send, and drop anything from and to numerous locations throughout geographies, and the corporation earns a significant amount from it.

Financial institutions like ICICI Bank, HSBC, and Citibank are some of Swiggy’s business partners. Affiliate marketing is a relatively new but very effective revenue stream, and it works for everyone involved. The meal delivery giant has gotten an advantage over competing models thanks to its innovative features and outstanding customer service. With its top-notch service, it has expanded its clientele.

USP of Swiggy

Delivery in a timely way and the absence of a minimum order requirement are Swiggy’s primary points of differentiation.

Swiggy SWOT Analysis

Swiggy Strengths

The speed of Swiggy’s delivery is one of the reasons for its fame.
Swiggy has been an excellent p user-friendly platform for consumers to place orders.
The brand’s extensive range and the variety of nearby restaurants are two more of its strengths.

Swiggy Weaknesses

Swiggy will only take orders from establishments that are physically close to the consumer. However, to satisfy their clients, many competitors expand their territory.
Customers’ overall bills are increased by Swiggy’s specific packing and delivery expenses.

Swiggy Opportunities

To gain a larger portion of the market, the corporation can rebrand itself more frequently.
Additionally, the organization may capitalize on cities in which it does not have a presence.

Swiggy Threats

Zomato, another big player in this industry, is a direct competitor to the corporation. Since Zomato is a major player, it has the potential to offer substantial discounts to clients in the future, drawing them away from Swiggy.
People nowadays are more health-conscious than ever before, and as a result, they prefer to cook their meals at home rather than ordering from out.

Conclusion

Swiggy’s growth over time has been phenomenal. It aims to raise more funds to strengthen and expand its services to more places. Despite being a latecomer in the industry, Swiggy was able to gain its deserved position through strategic planning and stable expansion.

Swiggy is doing a fantastic job of satisfying its consumers’ appetites, and it has complemented this with a well-thought-out business plan. This venture is poised for massive growth in the years to come if it continues at its current rate. Even though it’s in a head-to-head competition with another giant named Zomato, Swiggy has a critical advantage that will determine its fate.

FAQ

Who is the founder of Swiggy?

Swiggy was founded by Nandan Reddy, Sriharsha Majety, Rahul Jaimini in 2014.

How much Commission does Swiggy charges?

Swiggy charges 22-25 per cent on order value from their restaurant partners.

What is the business model of Swiggy?

Swiggy’s business model is a hyperlocal food delivery platform. It connects customers with nearby restaurants through its app and website, charges restaurants a commission fee on each order, and collects delivery fees from customers. It also earns from ads and subscription plans like Swiggy One.

What is the revenue model of Swiggy?

Swiggy’s revenue model is multi-channel. It earns money mainly by charging a commission fee from restaurants on each order placed through its platform. It also collects delivery charges from customers, especially during peak hours or for long distances. Swiggy earns through advertisements by promoting restaurants on its app and website, and from subscription plans like Swiggy One, which offer users free deliveries and other benefits for a fee. Additionally, it has expanded into grocery and quick commerce (Instamart), adding new revenue streams.

How does Swiggy dineout make money?

Swiggy Dineout makes money by charging commission fees from partner restaurants for every table booking or dining bill paid through its platform. It also earns through subscription plans like Gourmet Passport, which offer users discounts. Additionally, it generates revenue from promotional listings and ads for restaurants.

April 29, 2025

Rebel Foods Joins the Fast Delivery Group with a 15-Minute Service Goal

The craze of joining the quick commerce bandwagon is as real as it gets, as is the sprint to reach a netizen’s doorway with a platter full of goodies at unprecedented speeds. With its 15-minute meal delivery service, QuickiES, IPO-bound cloud kitchen unicorn Rebel Foods has also entered the ultra-fast food delivery market. However, Rebel Foods’ list of competitors may be overwhelming to many at a time when smaller competitors like Swish and Zing have already begun to attract attention with their 10- to 15-minute food delivery endeavours. The cloud kitchen startup intends to compete with Zepto, Swiggy, and Zomato in their home market by offering speedy delivery. In addition, the three delivery giants have repeatedly invested millions of dollars to expand their delivery business, sifting through minutes to service clients at their beacon call.

Logistics Vs Quality of Food

Rebel Foods, on the other hand, appears unconcerned, and CEO Sagar Kocchar believes that while Swiggy and Zomato excel at logistics regardless of what they provide, Rebel Foods’ unique selling point is food. This faith appears to be further bolstered by the company’s previously unheard-of promise of a free delivery or one in 15 minutes. Dominos was an early adopter with a similar offer; they also guaranteed 30 min or free delivery, and the entire market knows how sustainable that was in the long run.

Has Rebel Foods Really Cracked the Code?

Given that the quick meal delivery model is still in its infancy and many things need to be worked out, the market believes that Rebel Foods has truly mastered the ultra-fast food delivery code because of the brand’s confidence. Would it be sufficient to defeat Swiggy and Zomato, who have a stronger brand recall?

When consumers experience hunger pangs, they immediately seek food, Sagar Kochhar, co-founder and CEO of EatSure at Rebel Foods, stated to a media outlet, asserting that the decision was not prompted by competition or investor pressure. Why shouldn’t food be delivered in 15 minutes? The only thing left to do is to close the gap between the underlying demand and the consumer requirement. The brand was fully supported by consumer insights, but it is undoubtedly monitoring the competition.

He went on to say that consumers’ initial preference for light snack meals will push them to order quick food, but if the cuisine is good, they will eventually switch to it for all meal occasions. Apart from its own proprietary app EatSure, Rebel Foods has all of its brands listed on the meal delivery apps Swiggy and Zomato. However, EatSure will be the sole way to fulfil all consumer orders for the 15-minute service. Through its EatSure app, the company already has access to user data, which it can use to forecast client demand and properly design its menu—a capability that traditional restaurant brands frequently lack.

BlackBuck Faces INR 14.2 Crore Tax Demand Notice

BlackBuck has received a tax demand notice totaling INR 14.2 crore, raising concerns over its financial and compliance obligations.

StartupTalkyNitin Konde

February 27, 2025
With Emphasis on Beauty and Home Next, Amazon Begins Implementing 10-Minute Delivery Service

E-commerce giant Amazon has begun implementing its 10-minute delivery service, Amazon Now, in a few Bengaluru pincodes, weeks after testing it internally with staff members. According to a media report, which cited people with knowledge of the situation, the corporation plans to extend its rapid commerce services into further regions in the upcoming weeks. According to the report, this rapid commerce platform, which was internally dubbed “Tez,” is interacting with companies in the kitchen, home, and beauty sectors as part of its strategy to expand its business.

Many merchants are negotiating to join Amazon, and once they stabilise everyday necessities and groceries, these players should be starting their trade by March or April. According to a senior executive from a company that sells its goods on well-known rapid commerce platforms, “Beauty and home are the next focus areas,” the report stated.

Giant Testing Waters of Quick Commerce Sector

According to an Amazon representative, the company has always prioritised providing customers with a large selection together with quick and easy shipping. This limited pilot in a few Bengaluru pin codes is an experiment to deliver even faster speeds on a selection of daily necessities from our vendors that customers frequently require immediately. The brand is constantly evolving to give customers even more value. It should be noted that the e-commerce behemoth first told a number of media outlets that it had started testing Tez in December, using its staff in a few Bengaluru pincodes.

In the meantime, Amazon has started selling daily necessities and foods through Amazon Fresh. The business stated in November of last year that it was refocusing its efforts to increase order deliveries in 20 to 30 minutes. Its food delivery division stated at the beginning of 2024 that it had expanded its footprint to 130 cities, including Ambala, Aurangabad, Hoshiarpur, Dharwad, and Una. After rival Flipkart launched “Minutes” in August of last year, Amazon appears to have entered the rapid commerce arena late, recognising the opportunity to increase its client base and hold onto market dominance.

India’s Quick Commerce Race has Just Begun

Notably, this trend occurs at a time when well-established rapid commerce operators have begun to grow their dark shop count and reach tier II and III cities due to increased rivalry from up-and-coming labels in the market. Zomato, a prominent player in the foodtech industry, announced earlier this year that it has made significant investments in its rapid commerce, with the goal of building 2,000 dark shopfronts by December 2025.

Since 2023, when it stopped operating in more than 200 places, Zomato has been slow to expand. Conversely, Swiggy became optimistic about tier II and tier III towns and even launched its 10-minute meal delivery service in 400 cities.

Zomato Receives 18,000 Job Applications, Hires Two Heads of Staff

Zomato received 18,000 job applications for various roles and has hired two new heads of staff as part of its expansion and leadership strengthening.

StartupTalkyNitin Konde

February 13, 2025
Magicpin Reduces the Platform Charge to INR 5 for Each Shipment

The hyperlocal e-commerce site Magicpin has lowered its platform fee to INR 5 per delivery in an effort to lower customer costs. This puts it at half the price that Zomato and Swiggy, two of its main rivals, charge. The decision was made at a time when many delivery service companies are raising their prices.

Move Can Boost Company’s Sales

Compared to its former INR 7 price, Magicpin’s new INR 5 fee represents a considerable savings of about 29%. Notably, the cut contrasts sharply with recent fee hikes by big food delivery companies, such as Zomato, which increased its platform cost from INR 7 to INR 10. Swiggy followed Zomato’s lead and increased their platform cost from INR 6 to INR 10.

Thus, by implementing this technique, the business is gaining an advantage in the race for quick commerce, and this step is undoubtedly aligned with attracting more users to Magicpin’s platform.

Company’s Oder Book Increases by Two Fold

Anshoo Sharma, the CEO of Magicpin, made the announcement on X (previously Twitter). Additionally, he gave users his word that the reduced fee would last until the end of 2024. Sharma underlined that this action was a part of a commitment to strike a balance between the demands of delivery workers and customers, enabling more people to enjoy their shopping experiences during festive times.

After this, Magicpin reported that, in comparison to the prior year, the company’s orders during the Diwali season doubled. Magicpin deviated from the norm this Diwali by making some firm platform pricing choices. As a result, during the long Diwali weekend, over half a million orders for festive food and love and support were received! This is twice what the business accomplished the previous year. “We appreciate Magicpin customers and have made the decision to stick to Magicpin Promise for the remainder of the year,” the firm announced, quoting Anshoo Sharma.

Beyond just food delivery, platform fees are also rising in industries like fashion and general e-commerce, making online shopping more and more costly. Little handling fees are also charged by BigBasket and Licious, although their shipping costs are cheaper at INR 15 and INR 39, respectively. The total cost of internet shopping is increased by these extra fees, which occasionally go unnoticed by customers.

What Magicpin Does?

Anshoo Sharma and Brij Bhushan co-founded Magicpin in 2015, and it is a significant player in hyperlocal retail. The platform thrives in the age of technology and fosters mutual development by connecting businesses of all sizes with customers. Magicpin becomes a major player in the ever-changing world of online commerce by employing innovative solutions to improve the shopping experience. Users of this online location intelligence platform can find nearby eateries, retail establishments, spas, and fitness facilities. With its headquarters located in Gurgaon, Haryana, Magicpin allows brands and merchants to interact with their customers and offer them customised deals.

MagicPin Business Model | Founders | Funding | Success Story

Magicpin has been founded by Anshoo Sharma & Brij Bhushan. Know how does magicpin work, Magicpin Business Model, Funding, founders, & valuation.

StartupTalkyRishabh Rathi

November 5, 2024
Why Female Delivery Agents Are Scarce and Top Companies Hiring Women Riders
Before the industrial revolution, women were effectively excluded from well-paid high-status occupations. This was due to the lack of access that women had to higher education. A case in point was Cambridge university which only fully validated degrees for women in late 1947.

The change has long been coming and the largest growth has happened in the 20th century. The labour market shifted as more women sought higher education and entered the workforce.

Specialized higher professions saw women becoming doctors, lawyers and scientists and carving out long-term and successful careers for themselves. It has been a boon for the industrial society as governments realized that women in the workforce contributed to a higher GDP by increasing the labour supply in the country.

The 2001 World Bank report titled “Engendering Development” clearly states the connection between women’s involvement in the economy and the resultant growth –

‘While disparities in basic rights; in schooling, credit, and jobs; or in the ability to participate in public life take their most direct toll on women and girls, the full costs of gender inequality ultimately harm everyone…ignoring gender disparities comes at a great cost—to people’s well-being and to countries’ abilities to grow sustainably, to govern effectively, and thus reduce poverty.’

Gender vs. Profession
The Delivery Service Industry
The Companies That Are Empowering Women Delivery Riders
The Friendly Changes in the Delivery industry

Gender vs. Profession

There are a wide number of economic, social and cultural variables that impact gender distribution in a different occupation, within a particular region or country or even in a society as a whole.

As a result of gender clustering, women and men often participate in economic sectors in sharply different proportions. Professions which are demanding physically or require physical strength are, traditionally, considered male-centric. Recently, this view seems to be shifting, albeit slowly.

The Delivery Service Industry

This is a part of the service industry and does exactly what it says. It delivers everything from mails, packages, food etc for commercial and consumer use by road, ship and air.

There are deliveries via specialized networks as well – e.g., pipelines for liquid goods and power grids for electrical power. It is a fundamental necessity of trade and commerce. Like every other industry, the delivery service industry has also seen changes over the years, and more so in the post-pandemic world.

Delivery Agents

Typically, it has been considered a male domain job, until recently. Challenges such as longer schedules, lack of adequate restrooms, unavailability to own vehicles, incomplete documentation and the risks associated with visiting strangers and communicating with them have hitherto kept women from taking up such jobs. The industry has a dismal 1% of its total delivery agents as females.

What is Changing?

Paradigms are shifting. Ideologies are changing. And ground realities are changing. Delivery companies are facing higher attrition. According to one estimate by a staffing solutions company, the delivery industry has a very high attrition rate of almost 8% per month.

There is a rush to hire women delivery agents at India’s leading online delivery companies. There are several reasons for this demand.
- There is a need to rapidly ramp up manpower.
- Women have a better retention rate.
- Women are seen as more efficient and disciplined.
- Women are also highly focused.
- There is a demand to improve diversity numbers.
The Companies That Are Empowering Women Delivery Riders

Ecom Express

Ecom Express Female Delivery Agents

Ecom Express has about 2000 women working at its delivery hubs and about 100 women are in active delivery roles. The company currently has women-delivery facilities in Delhi, Ludhiana and Jaipur and aims at starting ten new all-women centres in the country this year.

The Chief People Officer of Ecom Express, Saurabh Deep Singla says – “Hiring women riders is one of our several efforts to strengthen the participation of women in the workforce. We hire women not just to improve diversity numbers but because their retention rate is higher. Women associates are sincere, diligent and highly focused and they are also very efficient.”

Shadowfax Technologies

Shadowfax Technologies Female Delivery Agents

Shadowfax Technologies is another delivery company that works with online marketplaces like Flipkart and BigBasket and employs around 6500 female delivery partners. This constitutes approximately 60% of its entire workforce.

Says Abhishek Bansal, the CEO of Shadowfax Technologies – “We are witnessing a growing demand for women as delivery partners with a considerable increase month-on-month across tier-1 and tier-2 cities and intend to grow this multifold. The entire hyperlocal delivery segment is contributing significantly to the increase in demand.”

Swiggy

Swiggy Female Delivery Agents

Swiggy is another company that is taking an active interest in attracting female delivery agents to its last-mile fleet.

It is allowing delivery by bicycles for short distances. The food delivery startup is exploring partnering with electric mobility partners to facilitate electric cycles and bikes for rent.

Swiggy currently has 22% of its female delivery agents delivering on bicycles. Mihir Shah, Vice-President of Operations says – “Several women either lack access to personal motor vehicles or don’t have a driver’s license.”

The Friendly Changes in the Delivery industry

Although delivery companies have realized the importance and value of including female delivery agents, there is a need to make some drastic changes in policy in-house, to make the eco-system more women-friendly. Some steps implemented by the companies to attract more women to join their workforce are,
- Access to hygienic restrooms.
- Allowing menstrual leave.
- Various safety measures to safeguard its female delivery agents.
- Providing safety training.
- Designing and implementing SOS alert System.
Conclusion

Women are ready, able and willing to take on such roles. It is the industry at large that has to overcome its gender bias. It is the industry that has to create a working atmosphere that is women-friendly. It is the industry that stands to gain maximum but making these shifts and allowing women within its folds.

FAQs

Why are female delivery agents scarce?

Lack of adequate restrooms, unavailability to own vehicles, incomplete documentation and the risks associated with visiting strangers and communicating with them are some of the reasons why there are fewer women riders.

How are companies encouraging women riders to join their delivery fleet?

As many women lack their own vehicles, Swiggy is allowing delivery by bicycles for short-distance orders.
July 19, 2022
Top 8 Interesting Facts About Dunzo That You Might Not Know About

Everyone loves when the requested commodities arrive just in front of you, without any hassle of going outdoors to buy. That’s why Dunzo, a micro-market Indian startup company, bestows online consumer services such as pick up and drop, online location discovery, online ordering, Travel services, Local couriers, and other essential deliveries. Is it astounding, to get whatever you want at your doorstep with the help of Dunzo?

Pertinently, Dunzo was founded by Kabeer Biswas and later collaborated with his friends Mukund Jha, Ankur Agarwal, and Dalvir Suri to dilate the company’s services. That’s when Dunzo was launched in July 2014 as a small hyper-local service in the WhatsApp group which has now enhanced as one of the best delivery services in India.

People adulated Dunzo for arranging a user-friendly experience by connecting throughout the user journey. Dunzo ultimately became a combatant service among Amazon, Flipkart, Swiggy, Zomato, Bigbasket, and Grofers.

Moreover, the company is ranked 4,022 whereas its global rank for the last three months is 67,116, and grown worth 1 billion dollars in the past two years since its commencement.

Let’s look at some of the unknown facts about the largest HLD business Dunzo.

1. Google’s First direct Investment
2. Dunzo Partnership With PepsiCo
3. Dunzo Was Started as a Whatsapp Group
4. Dunzo Follows Hyper-Local Delivery Model
5. Dunzo Partnership With GooglePay During COVID
6. Dunzo Delivers Anything to Everything
7. A User-Friendly Dunzo App
8. Distance-Based Pricing

1. Google’s First direct Investment

In 2017, Dunzo became Google’s first direct investment in India and led investors by financing 12 million dollars in the Series E funding round, while the Dunzo company plotted to enlarge its hyperlocal online service.

Till now, it is estimated that Google has invested around 40 million dollars. On note of it, the company has become worth 75.4 million dollars in FY 2021 according to its gross merchandise value.

2. Dunzo Partnership With PepsiCo

Dunzo – Pepsico tie-up

At the time of the pandemic, Dunzo developed its partnership with the major beverages and food company- PepsiCo India. Besides, Dunzo initiated the success of the partnership with PepsiCo by launching their exclusive brands such as Lay’s, Doritos, Quaker, Kurkure, and beverages.

3. Dunzo Was started as a Whatsapp Group

In 2015, Dunzo began its business through WhatsApp by taking small steps and ultimately becoming a massive success and the largest hyper-local delivery service in India.

During 2016, the company received 500 orders a day via WhatsApp, but as of today, they attained over 2 million transactions in a month, resulting in 40 times growth in India.

4. Dunzo Follows Hyper-Local Delivery Model

The company functions in eight major metropolitan cities – Bangalore, Delhi, Gurugram, Pune, Mumbai, Jaipur, Chennai, and Hyderabad. Moreover, Dunzo renders on-demand delivery services via an app, which made convenient and nifty for customers.

Dunzo runs as a Hyperlocal Delivery Business model by engaging on-demand services, delivering medicine from the pharmacy to the patients, as well as courier services. Furthermore, it acts as a guide to people in tracking online locations and delivering ordered items by the customers.

13 Steaming facts about Starbucks Every Starbucks lover should know about

If you are a frequent Starbucks customer, here are some facts about Starbucks that will change the way you order at Starbucks.

StartupTalkyNiharika Kalyankar

5. Dunzo Partnership With GooglePay During COVID

Dunzo Partnership with Google Pay

If you are a person living in a city where Dunzo service is available, you might have used it after the pandemic started in March 2020. Well, I did it to get college books from my seniors. And if you are an ardent user of Google Pay you would have come across the feature to order groceries and medicines through Dunzo. This partnership has been a success for both parties in terms of an increased user base.

6. Dunzo Delivers Anything to Everything

Using Dunzo, users can deliver packages from one place to another; purchase services from merchants that have tie-ups with Dunzo; pick-up and drop-off services; offer delivery services like grocery delivery, medicine delivery, laundry delivery; bike taxi, and bike pool services.

Dunzo website showing services enabled by Dunzo

Purchase of medicines from a pharmacy using the app requires a doctor’s prescription to be accepted as a task.

Dunzo is against users initiating tasks that are illegal, immoral, unethical, and unsafe like narcotic drugs, alcoholic beverages, etc.

7. A User-friendly Dunzo App

Dunzo App

The Dunzo app has been user-friendly in terms of fulfilling the tasks of its users quickly and accurately. The chat interface in the app allows the users to converse with the partner who is paired to complete the task.

Using this feature, the user can add new tasks, edit or cancel them and images can also be shared of the product if the user’s need is specific or the partner can share the image of the product to finalize with the user before purchase.

Therefore, Consumers can order anything from a store through the Dunzo app or portal, where the ordered products will be delivered by the Dunzo member at their doorstep.

And also Dunzo even makes courier services, where they pick the particular item from the pickup person’s address and deliver it to the correct destination.

20 Interesting Facts About Netflix You Need to Know

Founded in 1997, Netflix tried to sell its business to Blockbuster. But that’s not the most interesting fact about Netflix. Read further to know that fact.

StartupTalkyAlan Joseph

8. Distance-Based Pricing

Dunzo charges its customers based on the distance covered and the time spent at a shop. The lowest task price is Rs. 45 that is Rs. 45 for 3 Km and the price increases to Rs. 15 every other Km after. And the average rate for a task is Rs. 75.

The pricing model selected by Dunzo provides much savings to its users and is beneficial for shopping and delivery as it saves and works with a minimal amount of money.

Conclusion

“I will Dunzo it to you” is a common phrase among people especially the younger generation who live in cities where the service is available. Even though the delivery app has made people lazier by doing their tasks for them we cannot ignore the fact that the platform was a major life-saver during the pandemic and for office-goers with a hectic schedule by performing simple tasks for them.

Dunzo had grown as a major business in 2020 by having an average of 4x order value during the COVID crisis. Dunzo has grown 40x in the past two years and is growing at 10-15 percent every month and it raised $40 million from its investors in January 2021.

Dunzo’s success isn’t a fairytale but a success due to understanding the needs of people in these changing times.

FAQs

What is unique about Dunzo?

Dunzo is a hyper-local on-demand multi-delivery service app working towards fulfilling the requirement of anything and everything. It allows its users to get access to anything and everything as per their demand.

What is the mission of Dunzo?

The mission of Dunzo is stated as “to be the logistics layer of every city.”

What is the tagline of Dunzo?

The tagline of Dunzo is “Let’s Dunzo It”. It stands for transporting anything from one to another as per user demand.

Who is the target audience for Dunzo?

The target audience for Dunzo is considered as anyone who owns a smartphone.

Who invented Dunzo?

Dunzo was invented by the joint efforts of Kabeer Biswas, Ankur Agarwal, Dalvir Suri, and Mukund Jha in July 2014.

June 26, 2022
D2c Brands and New-Age Logistics Players – A Match Made on the Expressway

The article is contributed by Nilesh Ghule, Co-founder and CEO, TruckBhejo.

Over the last two years, primarily because of the pandemic, and deeper internet and mobile phone penetration there is an unprecedented surge in online shopping. As a result, the e-commerce market has boomed and is estimated to reach USD 200 bn by 2026, according to Inc42’s e-commerce report. It has also led to the growing popularity of the Direct to Consumer (D2C) business model.

Alongside this boom, a Mordor Intelligence report underlines that driven by the growth of manufacturing, FMCG, retail, and e-commerce, the Indian Third-Party Logistics (3PL) market is expected to register a CAGR of over 11.5% during the forecast period of 2020-2025.

This growing synergy between D2C brands and logistics providers is driven by the need for greater efficiency and speed with customers setting delivery deadlines that are shrinking every day, from 24 hours to 10 minutes. ‘Express Deliveries’ is the buzzword today, and with this in mind, Indian businesses, like their western counterparts, are slowly making the transition from horizontal to vertical integration.

Bottom-line over top-line

Earlier, the business strategy favoured the takeover of rival companies and the development of in-house facilities to expand in size and assert market dominance. Today, with the bottom line taking precedence over the top-line, and efficiency outscoring effectiveness, D2C brands are seeking third-party services to combat competition.

D2C as a business model relies on three important aspects namely core product, online selling experience, and offline fulfilment experience. It is in the third, the last-mile delivery stage, that tech-based logistics platforms are coming into play with the guarantee of delivering products in the most time and cost-effective manner through increased digitization and automation.

Tech-ing the shortcut

Just like robotics and sensors have streamlined operations in the warehouse, drones and driverless EVs could well revolutionize e-commerce supply chains in the future. For now, AI-driven tools like the Internet of Things (IoT), advanced algorithms, blockchain, and data analytics can be incorporated into operations to optimize routes, circumvent delays, and reduce empty miles.

TruckBhejo has, in just five years since its inception, shipped over 2 million tons, completing one million deliveries by leveraging technology. It even managed to satisfactorily complete a monthly order of 50,000+ products for an e-commerce major to meet increased demand during the festive season.

Tracking deliveries

With customers raising the bar every day, the buck doesn’t stop at speed. It demands reliability and transparency too. The customer expects personalized communication via text and email to stay connected with the product from the time it leaves the warehouse till it reaches their doorstep.

Here again, tech-based 3PL players can provide great customer satisfaction through real-time updates that help them track the product right down the supply chain. Even if there’s a logjam, they are as much in the know as the supplier and transporter. This kind of visibility helps build brand loyalty which is imperative in a crowded market.

List of Top 13 Logistics Startups in India

The logistics industry in India is growing day by day. Here is a list of the top logistics startups in the country that are leading the industry.

StartupTalkyAshwini

Customized solutions

The road logistics market in India is expected to reach USD 330 billion by 2025, according to the ‘Inter-city Logistics Market Study’ by RedSeer. However, to ensure a seamless run, logistics tech aggregators need to come up with customized solutions to cater to clients who come in all shapes and sizes, demanding local, pan-India, and even global reach.

One way to do this is through smart packaging. Standardization in the size of the items and choice of packing material, with thermocol sheets and bubble wrap replacing bulky plywood or fragile glass cases, can bring down the burden of warehouse and transportation costs and scale up the volume of orders.

Plan for the future

The Indian logistics sector has one of the highest transportation costs at 14% Gross Domestic Product (GDP). The good news is that the government has come to its aid with the PM Gati Shakti—National Master Plan launched by PM Narendra Modi. Its aim is to break departmental silos and bring in more holistic and integrated planning and execution of projects with a view to addressing issues of multi-modal and last-mile connectivity. With better infrastructure, digitization, and pan-India mobile and internet connectivity, 3PL players can speed up their operations, helping D2C brands to thrive and grow.

Conclusion

While there is a steady growth in D2C business model adoption and e-commerce business, it is imperative for the companies to team up with the logistics players to ensure success and sustainable growth. A good logistics partner with tech-enabled solutions like TruckBhejo can provide unparalleled customer experience through speedy deliveries, timely status updates, and accommodating last-minute requests. Tech-led startups are adding immense value to the D2C brands by putting the technology into the use case and making various smart tools available to the customers. This “best match on the expressway” is ultimately ensuring delivery of not just the goods, but also of the customer experience and satisfaction.

June 3, 2022
Top 7 Best and Reliable Logistics for Your D2C E-commerce Brand

E-Commerce is growing with immense speed and in order to keep up with the fulfilment of customers, requires logistics services. The E-commerce sector is worth USD 64 billion and is expanding at an annual 20% rate.

Logistics partners play a very significant role in completing the whole E-commerce shopping procedure. Because logistics partners act as the actual driver in delivering the product to the consumer and also, it works as the definitive factor in the uplifting of D2C companies. They run the seamless process for purchasing in E-commerce companies.

As the digital market is growing, numerous companies are providing logistics services to D2C E-commerce companies. Today, there are dozens of logistics services options and all competing to be the best.

The logistics act as the third party in the D2C companies but the difference is, that they just deliver the product bought from the D2C E-Commerce website, to the customers. Partnership with logistics services offers great facilities such as faster delivery, 2-day shipping and covering all the other aspects. That’s why, in this article, we have discussed the top reliable companies for your D2C brand. Let’s get started!

1. Shiprocket
2. XPO Logistics
3. Delhivery
4. C.H. Robinson
5. Blue Dart
6. Ecom Express
7. DHL

1. Shiprocket

Shiprocket Logo

For E-commerce retailers, it often becomes quite difficult to manage all the requirements of the logistics service provider. That’s why Shiprocket offers an integrated solution so that your all requirements get fulfilled.

Shiprocket is a very promising Indian fulfilment company that offers tons of courier partners together to make logistics services convenient for online retailers. The company has over 17 Courier partners, as of today.

Shiprocket provides remarkable logistics services at a very reasonable price, for 500 grams it charges Rs. 22. It delivers to more than 26,000 pin codes in over 220 countries across the world.

2. XPO Logistics

XPOLogistics Logo

XPO Logistics is known as the second-largest contract logistics provider in the world. It facilitates all logistics services including outbound and inbound. Furthermore, XPO Logistics serves a huge range of industries with multiple modal shipment forwarding outcomes and an integrated technical outlet. XPO Logistics entirely depends on technology.

It utilises artificial intelligence and machinery to improve its services. It uses robots and a computerized sortation system in enhancing delivery speeds and warehouse productivity.

3. Delhivery

Delhivery Logo

The leading Indian logistics and supply chain management firm, Delhivery, established in 2011 is known for offering a great range of top-notch infrastructure, logistics and remarkable technological systems. Delhivery serves around 2,500 countries across the world.

Delhivery provides logistics services such as same-day delivery, on request delivery, return services, express distribution, COD and others. It has over 75 fulfilment centres along with 24 computerized sortation centres, 1400+ delivery vehicles, 8000+ partner centres and 4000+ team partners.

4. C.H. Robinson

C.H. Robinson Logo

The company with the service of multimodal transportation, C.H. Robinson, also works as a third-party logistics provider. C.H. Robinson manages over 18 million shipments and USD 20 billion in freight per year.

The company offers a great range of services that includes LTL freight choices, truckload, intermodal shipment, and trade obedience services. Moreover, it offers consultancy services that help its partners in optimizing the supply chain.

5. Blue Dart

Blue Dart Logo

Blue Dart is known as the most prestigious logistics firm in India. Blue Dart offers absolutely safe and reliable integrated logistics services for D2C E-commerce companies.

Blue Dart serves over 35,000 locations across India and offers a great range of services including supply chain solutions, air express, custom clarity and shipment forwarding.

Blue Dart prefers the most remarkable technology to enhance its supply chain management for E-commerce companies. It makes the delivery very quick and convenient to receive by the customers.

6. Ecom Express

EcomExpress Logo

Ecom Express is a logistics and distribution company that hasn’t been in the market for very long. It encompasses the expectations of industries and has gained remarkably good market share.

Ecom Express is widely famous across India with distribution branches of over 2500 in more than 2400 cities as well as towns. It delivers at more than 25,000 Indian pin codes.

Ecom Express offers a bunch of additional features such as an affectionate GPS enabled fleet, weight dimensions, first mile pickups, last-mile delivery and many others.

7. DHL

DHL Logo

DHL is a distinguished global logistics company that serves more than 220 countries and territories across the world. DHL offers tons of logistics requirements such as transportation, integration, warehousing, and chain management.

DHL works best for businesses located outside the United States. It provides simple and affordable shipping for E-commerce companies. Moreover, it also offers to consult for the companies as well as other customized services to help the E-commerce companies to grow extensively in the international market.

Conclusion

With the growing digital businesses, especially in India, therefore E-Commerce companies require specialized partnerships with the logistics service provider. Today, the market has dozens of companies and firms that provide streamlined delivery services to consumers. As there are numerous options, one gets to choose the right and affordable logistics services partner for their E-Commerce platform and facilitates the operations as well as order management.

FAQs

What are some of the best logistic services for D2C?

DHL, Blue Dart, Delhivery, and C. H. Robinson are some of the best logistic services.

How does the D2C supply chain work?

D2C companies are companies that do not have middlemen in between they ship the product directly to the consumers.

May 13, 2022
Top 9 Leading Drone Delivery Startups in the USA

Use of drones for getting materials across difficult terrains is a familiar picture to all of us. The usage of drones can be dated back to World War 1 where they have carried out their respective tasks in unimaginable terrains in the most efficient manner. Over the last few years, drones have become an important part of many businesses like photography and delivery systems.

Drones have especially become popular when it comes to packaging delivery operations as it saves a lot of money on manpower, operations and maintenance. Moreover, it also reduces the room for mistakes. It is expected that global package delivery operations will be valued at over 6000 million dollars by the end of 20206, growing at a rate of 53% every year from 2021 to 2026.

In view of these dazzling statistics, several drone delivery startups have mushroomed globally in a very short span of time. This article will look at the drone delivery startups that are based in the United States.

1. Mighty Fly
2. UPS Flight Forward
3. Volansi
4. Matternet
5. Flirtey
6. Zipline
7. Shield AI
8. Google Wing
9. Ware

1. Mighty Fly

Founder: Manal Habib, and Scott Parker

Founded: 2019

Mighty Fly Drone

Founded in 2019, Mighty Fly delivers supplies to medicines, spare parts, and the mining and gas industries. Apart from delivering goods to remote locations with the help of heavy cargo aircraft, they also provide customised drone services.

This drone delivery startup was founded by Manal Habib, and Scott Parker and has its headquarters in San Francisco. They hope to restructure the ways in which logistics were perceived through efficient designs and plans in a cost-effective manner.

2. UPS Flight Forward

Founder: Myron Scott Wright

Founded: 2019

UPS Flight Forward Drone

UPS Flight Forward is a drone delivery service by UPS that focuses primarily on delivering medical supplies to different regions across the United States. They have expanded their base by partnering with various other similar firms like Matternet, CVS, WingCopter etc so as to make the most out of this next-generation technology.

3. Volansi

Founder: Hannan Parvizian and Wesley Zheng

Founded: 2015

Volansi Voly 50

One of the top drone delivery and aerial logistics company Volansi is based in California and was founded by Hannan Parvizian and Wesley Zheng in 2015. They are specialised in delivering shipments over long ranges. Since they have fixed delivery routes, the customers can get their deliveries within a very short span of time.

Their long-range services have helped in expanding drone delivery services even to very remote areas. Recently they released VOLY 50 series, which is an unmanned, multi-role, VTOL aircraft that has a better flight range and flexible payloads.

4. Matternet

Founder: Andreas Raptopoulos

Founded: 2011

Headquartered in California, Matternet offers completely automated drone services that are available on-demand. Their drones are completely powered by batteries. They were the first ones to power vaccine drone delivery in the US.

Matternet has developed easy-to-use stations across operational routes so as to ensure proper battery exchange and automated payload. They have received total funding of USD 31,140,701 as of October 2021.

5. Flirtey

Founders: Ahmed Haider, Matthew Sweeny, and Tom Bass

Founded: 2013

Flirtey Drone

Founded by Ahmed Haider, Matthew Sweeny, and Tom Bass, Flirtey provides an independent drone delivery service to deliver mail, food and medicines. It was founded in 2013. They use automated drones. This small step has saved the startup a lot of money that would have otherwise been spent on cumbersome logistics and operations.

Apart from their path-breaking vision, they are also the first startup to carry out an FAA-approved drone delivery in the US. They are also the first ones to have a commercial drone delivery service in the US as well.

6. Zipline

Founders: Keenan Wyrobek, Keller Rinaudo and Will Hetzler

Founded: 2014

Zipline Drone

Zipline is one of the most popular drone delivery startups in the US. They are known for their automated drones that carry out the delivery of blood and other important medical supplies.

They have a network of hospitals that are in turn connected to the patients who will require these supplies on a daily, weekly or monthly basis. These deliveries are carried out by leveraging proprietary fixed winged drones. It was founded in 2014 by Keenan Wyrobek, Keller Rinaudo and Will Hetzler.

7. Shield AI

Founders: Ryan Tseng and Brandon Tseng

Founded: 2014

Shield AI Drone

Founded in 2014, Shield AI is headquartered in San Franciso. They manufacture autonomous drones that are used for patrolling and surveillance. They have also developed a deep neural network-based system that suits them best for battlefield applications. They primarily cater to first respondents and law enforcement personnel.

8. Google Wing

Founder: –

Founded: 2018

Wing Drone

The Wing is a subsidiary of Alphabet that provides drone delivery services over small ranges. They are the first ones to receive air carrier certification from FAA. Their drones can carry small packets that weigh less than 3.1 pounds. They ensure that the customers don’t come into contact with these drones by delivering packages 20 feet above the ground.

9. Ware

Founders: Ian Smith and Joseph Moster

Founded: 2019

Ware Drone

Founded by Ian Smith and Joseph Moster, Ware focuses on self-flying autonomous drones. They have blended their expertise in robotics and machine learning for better delivery experiences. They have connected various distribution centres with respective warehouses so as to make the process of delivery smooth.

How Google’s Wing Will Revolutionise Drone Delivery?

Google has recently completed testing its drone delivery service, Wing. Take a look at how it can revolutionize drone delivery services.

StartupTalkyDamini Bhandary

Conclusion

Drone delivery package systems have paved the way for the inception of many startups in the United States of America. Apart from the growth of technology and required logistics, the government is also very supportive of the developments. Various rules and regulations that ensure the safety and security of the people associated with this system encourage better research and innovation in this region.

Apart from that distribution is an inexhaustible area which only expands with the passage of time. In that case, there will not be any shortage of funding as well. If you look at all the startups that were mentioned above, each one of them is extensively funded by multiple investors which is evidently reflected in the kind of work that they do. The drone delivery system is a budding area of technology that has the potential to reduce global geographical disparity.

In our attempts to create a global village out of this world, the strengthening of drones and related AI platforms is of prime importance. However, it is also to be noted that the technology that serves the people through drones can also be misused for various illegal activities. Hence, while research and development in this area are encouraged, it is also important to institute appropriate checks and balances. In that way, this budding technology can benefit the whole of humanity.

FAQs

What is the biggest drone delivery company?

UPS Flight Forward, DHL Parcelcopter, Wing, Matternet, Zipline, Flytrex, and Flirtey are some of the leading drone delivery startups.

Which company started drone delivery?

Wing by Alphabet was the first company that launched its commercial drone delivery service in October 2019.

What companies are leading drone technology?

DJI, Yuneec, Skydio, and Kespry are some of the leading drone companies in the world.

Is drone delivery the future?

Yes, Drones have proven to be great for many logistics companies around the world. In the near future, we might witness drones delivering medicines, food and much more.

May 4, 2022
How Do Delivery Services Like Zomato Will Deliver Food in 10 Minutes?

With the threat of the Covid-19 pandemic always looming, the demand for delivery services-be for food or groceries – is at its peak. This is especially true in metropolises like New Delhi, Mumbai, Bengaluru, Chennai, etc, which have a significant middle-class population in addition to their bourgeois.

Thus, there is a need for delivery services to ramp up and make their services faster than before, to cope with the ever-rising competition and meet the demands of the customer. Thus, various grocery apps such as Zepto, Blinkit (earlier known as Grofers), BigBasket, and Swiggy InstaMart have already started delivering basic grocery essentials such as dairy items, fruits, vegetables, cereals, etc within the next 10 minutes (yes, you read it right, just 10 minutes) to deliver the respective items.

On the 21st of March, 2022, another revolutionary announcement was made when the CEO of the popular food delivery Service Zomato, Mr Deepinder Goyal, launched Zomato Instant, in which some specific food items would be served to the customer within 10 minutes. The food items that would be sold within 10 minutes would be the ones that are “popular, standardised, and can therefore be dispatched within 2 minutes” in Mr Goyal’s own words.

So now we would discuss in this article how, first, the plans of Zomato briefly as to how they want to deliver food products within the next 10 minutes. We would also discuss how are grocery items are dispatched to their customer in the first place, within 10 minutes? We would then discuss the concerns shown by various organisations that whether delivering in such a short span of time is safe or not and then end this with the various memes we saw on Twitter when Zomato Instant was launched.

The Upcoming Zomato Adventure
Delivery of Grocery Essentials Within 10 Minutes- “The Dark Store”
Concerns About Delivering in 10 Minutes
Social Media Reaction to Zomato Instant

The Upcoming Zomato Adventure

On the 21st of March 2022, the CEO and founder of Zomato, Mr Deepinder Goyal shocked the business world, when he said in his blog that Zomato is planning to launch Zomato Instant, in which they would deliver hot meals to their customer within just 10 minutes.

Announcement: 10 minute food delivery is coming soon on Zomato.

Food quality – 10/10
Delivery partner safety – 10/10
Delivery time – 10 minutes

Here’s how Zomato Instant will achieve the impossible while ensuring delivery partner safety – https://t.co/oKs3UylPHh pic.twitter.com/JYCNFgMRQz

— Deepinder Goyal (@deepigoyal) March 21, 2022

This created a furore as while groceries being delivered within that time limit wasn’t something unusual but hot cooked food was something no one thought would ever come considering the time it takes to cook the food properly, then packaging it and other stuff that is involved in it.

Zomato is planning to launch a pilot program with four stations in Gurugram, Haryana, and, depending on its success, it would expand to other major cities.

Replying to a query on Twitter, Mr Goyal said they can expect food that can be cooked and served quickly like Bread Omelette, Poha, Momos, Maggi, etc. If a customer is expecting a thing that takes time to cook, like say a Dal Makhani or a Rajma Masala for example, then there would not be any changes in the time taken to deliver those items.

Here, Zomato would set up ‘finishing stations’ at multiple high-demand locations across a particular city. These stations will house roughly around 20-30 bestseller dishes (which can be made quickly) from various restaurants based on demand, predictability, and hyperlocal preferences, which they can find out from the data they have in the first place.

With the help of Machine Learning algorithms, they would gradually get much better at determining what kind of meals should come under the ambit of Zomato Instant.

Delivery of Grocery Essentials Within 10 Minutes- “The Dark Store”

Grocery services have their own equivalent of finishing stations, as discussed in the case of Zomato by the name of “Dark Stores“. “Dark stores” refer to a small retail distribution centre or warehouse, located in the suburb of a metropolis. Rather than conventional fulfilment centres or warehouses, these “dark stores” are located within the suburbs of the cities, to fulfil their aim of serving essentials quickly to their customers. The employees of the “dark stores” generally work in 2 shifts 24×7. They are called “dark stores” as they are closed to the public and are for only fulfilling online orders.

Warehouse

So what happens, in these brightly lit and ventilated “dark stores” have stocked grocery essentials in the store, then, they get information about a customer’s order through the handheld device they have in their hands, then they move around the dark store to locate an item, scan the barcode present and then check whether it matches with the item the customer ordered, if it is correct then they move on the next product. Thus, digitization and automation are the key pillars of a “dark store”. It is just a scaled-down version of what we see in large fulfilment centres.

There are multiple advantages of having a “dark store”. It makes it easier to store perishable products and gives us more control regarding inventory management. It also helps corporations to store an extensive range of products.

Concerns About Delivering in 10 Minutes

There have been various concerns about companies managing to deliver their products within the stipulated amount of time, with the major one being road safety. This is a major problem in virtually all Indian cities, where roads are riddled with potholes, with cattle or other animals straying into traffic. This presents a frequent challenge for motorists, who often violate basic rules to deliver their product within the required time limit.

Traffic in India

So now various non-governmental organizations have doubted the feasibility of food or groceries being delivered within 10 minutes without compromising on the safety of the drivers. This has also led to debates within the political circles of India, when the home minister of Madhya Pradesh, Mr Narottam Mishra had accused Zomato of “jeopardizing the lives of delivery drivers” with the launch of Zomato Instant. A Member of Parliament from Tamil Nadu, Mr Karthi Chidambaram, has also spoken regarding this issue in the Lok Sabha.

When 13 drivers of Blinkit and Zepto were interviewed by Reuters in 2021 in various cities of India, like Mumbai, New Delhi, and Gurugram, they said they had to face immense pressure to meet delivery deadlines or else face losing their job.

Since then, companies have taken various measures to build more “dark stores” as near as possible so drivers don’t have to risk their lives and can do it within the stipulated time limit.

Social Media Reaction to Zomato Instant

With the launch of Zomato Instant, there have been a lot of memes on multiple social media platforms, especially on Twitter regarding the 10-minute delivery scheme. Let us take a small peek at those memes.

Memes on Zomato 10 minute Delivery

Zomato 10 minute Delivery Memes

How to Provide an Unforgettable Food Delivery Experience (8 Ways)

If you are a food delivery startup and want to provide an unforgettable food delivery experience, Here are a few ways to give an unforgettable experience.

StartupTalkyShubham Kumar

Conclusion

Thus, here we have discussed briefly how delivery services act on their promise of delivering their products within 10 minutes regarding groceries and the plan of Zomato on how they would potentially deliver meals to the customers within 10 minutes. We have also discussed the various concerns regarding the 10-minute delivery plan and the social media reaction due to Zomato’s new plan.

In the end, these companies contribute a lot to the growth of the Indian economy as a whole, due to the various jobs they provide. These new 10 minute plans may sound risky but in the end, you have to take such bold initiatives to succeed in the current world. These bold initiatives are a huge reason for Zomato’s successful Initial Public Offering (IPO) in July 2021.

FAQs

How does 10-minute delivery work?

There are dark stores set up in different locations across the city, as the customer orders something the food or grocery is picked up from the warehouse or dark store and delivered within 10 minutes.

What are the apps that deliver in 10 minutes?

Zomato, Zepto, and Blinkit are some of the apps that deliver groceries or food in 10 minutes.

March 30, 2022