StartupTalky

Tag: hyperlocal

  • Gojek Business Model – How Does Gojek Make Money?

    Gojek is an Indonesian super app which is a one-stop destination for paying bills, booking movie tickets, ordering food, buying groceries, sending or receiving packages, booking two-wheeler or four-wheeler taxis, paying money digitally and much more. The company provides 20+ services to consumers.

    The company which started as a ride-hailing service with just 20 motorcycles is now Indonesia’s first decacorn.

    In May 2021, Gojek merged with Indonesian e-commerce company Tokopedia to form GoToGroup. The company has created its own ecosystem and is growing at a rapid scale.

    In the beginning, the company faced tough competition from Uber but, still, the company was able to beat the company all thanks to its business and revenue model.

    Let’s decode the business and revenue model of Gojek, shall we?

    What is Gojek?
    Main Services of Gojek
    Target Audience of Gojek
    Business Model of Gojek
    What Is Unique About Gojek?
    How Does Gojek Make Money?
    How Did Gojek Destroy Uber?

    What is Gojek?

    Gojek is an Indonesian company that has a super app using which you can pay money digitally and get access to on-demand services in various sectors like transport and logistics, food and shopping, daily needs, business, news and entertainment. Basically, the app is a one-stop destination for users to get a wide variety of services.

    Gojek operates in 5 counties: Indonesia, Vietnam, Singapore, Thailand, and the Philippines. The headquarters of this company is in Jakarta.

    The journey of the company started in 2010 when the company had 20 motorcycle drivers who were providing on-demand bike rides to passengers. Later, the company started providing food delivery and courier services.

    Although things completely changed for the company when it launched its official app in 2015 with four services: GoRide, GoSend, GoShop, and GoFood. Later, Gojek changed its business model to a super app and the rest is history.

    Main Services of Gojek

    Gojek provides 20+ services to its users:

    Transportation and Logistics:

    • Goride: Get a two-wheeler taxi and reach your destination on time.
    • Gocar: Book a four-wheeler taxi.
    • Gosend: Send or receive packages within a few hours.
    • Gobox: If you moving out and want to shift your goods to the new house you can use this service.
    • Gobluebird: Book exclusive Bluebird rides (Bluebird is Indonesia’s leading taxi operator).
    • Gotransit: Acts as a trip assistant where users can plan, track and reach from one destination to another using: public transportation, Gojek transport or a combination of both. This service provides real-time updates.

    Food and Shopping:

    • Gofood: Order food online from your favourite restaurant.
    • Gomall: Buy products from the online marketplace.
    • Gomart: Get groceries at your doorstep.
    • Gomed: Buy medicines from licensed pharmacies.

    Payments:

    • Gopay: 4th largest e-wallet service in Indonesia
    • Gobills: Pay your bills online.
    • GoPaylater: GoPayLater from Findaya provides a payment method where users can pay bills, buy clothes and pay the money in the upcoming months
    • Gopulsa: Top up your data and talk time.
    • Gogive: Donate money to the trusted NGO and GO beneficiaries.
    • Goinvestasi: Buy and sell gold and get the money credited to your Gopay account

    Daily Needs:

    • Gofitness: Access exercises such as yoga, Zumba, pilates and many more

    Business:

    • Gobiz: This service is especially for merchants who want to manage and grow their business.

    News and Entertainment:

    • Gotix: Book movies and events tickets
    • Goplay: Stream movies and web series
    • Gogames: Get gaming tips, top-up gaming credits and watch your favourite gamers
    • Gonews: Read the latest news

    Target Audience of Gojek

    The target audience of Gojek is people between the age group of 18-34 years old who live in urban cities. The company also targets people who are not financially stable by providing them with their digital payment service: Gopay.

    Since Gojek provides a wide variety of services they are able to cater for the needs of a larger audience. Their super app model allows them to connect with different kinds of people from different sectors.

    Business Model of Gojek

    Gojek follows the super app business model where they provide a wide range of services to its users on a single platform. This means that instead of using one app to book movie tickets and another app to send packages they can use Gojek to fulfil both of their demands.

    The super app model provides a more convenient approach and also saves time for the consumers. This business model works really well because nowadays consumers have become impatient and want things as fast as possible.

    The business model of Gojek revolves around three segments: consumers, merchants and drivers.

    Let’s see how the super app works for these three segments:

    Consumers:

    First consumers need to identify what kind of service they want. For example, do they want to book movie tickets, send packages, book a two-wheeler or order food?

    If the customers want to order food online, Gofood is the right option. The second step would be to select their desired food and add it to the cart. Finally, they have to pay the money. After paying the amount consumers will receive the food at their doorstep.

    Merchants:

    Once the food is ordered or any kind of service is requested the merchants will receive the order details in their Gojek app. Once merchants understand the order details they need to start processing the order. In the meantime, the delivery driver is on his way to get the product.

    Merchants have to make sure that they make the product or service as soon as possible. Once the order is ready, the delivery guy takes the product and delivers it to the customer. When the product is handed over to the delivery guy the money is instantly deducted from the merchant’s Gopay wallet.

    (All the transactions on Gojek are majorly done via Gopay)

    Drivers:

    Drivers need to first sign-up with Gojek by providing some basic details like name, address, identity proof, vehicle number, license number and many more.  The internet connection of drivers needs to be really good if they want to receive a large number of orders.

    Drivers can choose from a wide variety of services. They can sign up as the two-wheeler taxi driver, car drivers, delivery guys and much more. To get started they need to turn on the online icon which is present in the Gojek app. Once they turn it on, they will start receiving the orders.

    If a delivery guy is busy delivering products, the app shows him busy and the order is automatically assigned to another driver.

    What Is Unique About Gojek?

    The USP of Gojek is that the company provides 20+ services which users can access from just a single app. To beat its competition the company started using scooters and motorcycles instead of cars to avoid the huge traffic jams. Due to this brilliant idea, the services of Gojek became more premium and hassle-free.

    How Does Gojek Make Money?

    Commission from Consumers:

    Gojek gives a one-stop solution to its consumers for all their demands. They don’t have to install numerous apps to fulfil their needs. Instead with just Gojek, they can access 20+ services. For this convenient and fast service, consumers need to pay a service charge of 10% of the order.

    Commission from Merchants:

    A lot of merchants want to showcase their products and services on Gojek. Due to the huge customer base and popularity of this super app, everyone wants to grow their business and open new streams of revenue. Gojek takes a small commission from the retailers on each order that they get. This commission is automatically deducted from the retailer’s wallet when they hand over the product to the delivery guy.

    Commission from Drivers:

    Drivers and delivery partners also need to pay Gojek a commission of 20% on each order delivered. This is a smart strategy since it encourages drivers to deliver more products in order to gain profit.

    How Did Gojek Destroy Uber?

    In the beginning, when Gojek started its ride-hailing service its biggest competitor was Uber which had already earned its name in the market. Although Uber wasn’t able to capture the market and its newly arrived competitor Gojek grew both its customer base and profit.

    What is one thing that allowed Gojek to beat Uber?

    Gojek was able to beat Uber because the company had studied the local market of Indonesia in detail. The company had understood most of the cities in Indonesia has a huge traffic jam. In this condition, using cars to deliver passengers won’t be a smart decision.

    To avoid traffic jams and speed up their process Gojek started using scooters and motorcycles. This made the transportation service of Gojek much more convenient and hassle-free.  On the other hand, Uber’s business model was purely revolving around cars which made it impossible for the company to grow.

    Another advantage of incorporating scooters and motorcycles in their business model was that it was much cheaper for people to buy two-wheelers than a four-wheeler. This helped Gojek to get a huge amount of drivers.

    After that Gojek transformed itself into a super app which further helped the company to capture the whole market.

    Conclusion

    The business and revenue model of Gojek taught us that we should always understand the target audience’s needs and behavioural patterns. We should also study the local market in great detail. These two things will allow you to build a powerful business model.

    Gojek understood that most of the cities in Indonesia have a lot of traffic congestion. So, when the company started its ride-hailing service it started using scooters and motorcycles instead of cars to avoid traffic jams. This made the company’s services more premium and attractive.

    After that, they started giving a wide variety of services to acquire more customers. Gojek is successful today because they have simplified the customer journey and made their services top-notch.

    Remember, when you provide quality services to the customers your business will automatically grow. You should always try to innovate and aim to make the lives of your customers easier and happier.

    FAQs

    How does Gojek operate?

    Gojek follows a super app business model where they provide a wide range of services like paying bills, booking movie tickets, ordering food, buying groceries, booking a four-wheeler or a two-wheeler taxi and much more on a single platform.  Gojek operates with 3 people in its business model: Consumers, merchants and drivers.

    How does Gojek make profits?

    Gojek earns profits by taking commissions from its consumers, merchants and drivers. Consumers need to pay a service charge of 10% of the order. While the drivers receive a commission of 20% on each order delivered.

    How does Gojek make profits?

    Gojek focuses on bikes and scooters instead of cars to avoid traffic jams and speed up their process.

  • 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
    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.

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    5. Dunzo Partnership With GooglePay During COVID

    Dunzo Partnership with Google Pay
    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
    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
    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.

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    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.

  • Top 7 Deal Sites In India: Offering Huge Discounts

    E-commerce in India is developing at a remarkable speed; emerging players like Flipkart and Amazon have proven their success stories. Currently, the E-commerce industry seems to be the ultimate winner in the business world. Several E-commerce websites are emerging and taking India by storm. When you are shopping, who doesn’t like discounts and great deals. Thanks to deal websites we have that options. Deals websites are intended to offer exclusive deals and products each time.

    Deal websites in India save money and offer great deals while shopping from those E-commerce websites. You know there are numerous great deals online. However, you do not have the time to classify them as good and bad sites. In this article, we will talk about the top deal offering sites. So, without any further ado, let’s get started.

    GrabOn
    Couponswala
    Mydala
    Nearbuy
    Freekaamaal
    MyTokri
    DesiDime

    GrabOn

    Grabon Website
    Grabon Website
    Company Name GrabOn
    Location Hyderabad
    Founders Ashok Reddy, Bhanu Raju, Spandan Jaggumantri, Sitaram Kumar Bodempudi, HariBabu Yeliti, Nagendar Chamalla
    Founded 2013
    Website grabon.in

    GrabOn is an online coupon and deals website in India that list various offers on online merchants such as Snapdeal, Flipkart, Amazon, Foodpanda, Jabong, and redBus, and updates them on their website. GrabOn declares that there are 4000 coupons from more than 2,000 dealers. It has over 40 million registered customers and receives 25 million page views. It gains commissions from e-commerce businesses for transactions. It is a brand owned and operated by e-commerce commodities company InspireLabs. GrabOn provides genuine and real deals on its platform.

    Couponswala

    Couponswala Website
    Couponswala Website
    Company Name Couponswala
    Location Bangalore
    Founded 2019
    Website couponswala.com

    Couponswala offers some great shopping discounts, offers and coupons from some of the most prominent Indian websites like Flipkart, Amazon, Paytm, Makemytrip, and more. It provides coupons for over 1000 E-commerce websites. Couponwala started its journey in the year 2019 and has been offering exclusive and pretty amazing deals to the customers of some popular websites. The headquarters is located in Bangalore. It’s known for providing updated and genuine deals and coupons on its platform.

    Mydala

    Mydala Website
    Mydala Website
    Company Name Mydala
    Location Delhi
    Founders Anisha Singh
    Founded 2009
    Website mydala.com

    This is one of the oldest and most successful deal websites in India for the past six-year. Mydala is offering discounted deals across most of the categories. The company collects a commission as soon as the customer buys or books a deal. After that, the residual amount is paid by the customer at the time of redemption of the offer when he visits the retailer to avail facility. It is targeting over 410 million consumers in over 209 cities in India.

    Nearbuy

    Nearbuy Website
    Nearbuy Website
    Company Name Nearbuy
    Location Hyderabad
    Founders Ankur Warikoo
    Founded 2010
    Website nearbuy.com

    Nearbuy is a brand owned and operated by Nearbuy India Private Limited, it is a hyper-local online deals website that allows customers and local traders to discover and deal with one another. Giving local merchants and businesses more distinctness and business. It is currently operating in more than 35 cities in India and 18+ divisions and has over 50,000 retailers onboard.

    Freekaamaal

    Freekaamal Website
    Freekaamal Website
    Company Name Freekaamal
    Location Noida
    Founders Ravi Kumar
    Founded 2010
    Website freekaamal.com

    FreeKaaMaal.com is one of the head deals and coupon sites in India. It is a customer-driven website. Users can post the best deals they find on several e-commerce sites, and then the team selects the best out of them to promote them.
    Freekaamaal is partnered with more than 600+ online stores including, brands like Amazon, Flipkart, eBay, Snapdeal, Jabong, Shopclues, Myntra, and many more.

    MyTokri

    MyTokri Website
    MyTokri Website
    Company Name Mytokri
    Location Delhi
    Founders Saurabh Gupta
    Founded 2012
    Website mytokri.com

    MyTokri is one of the prime online shopping deals gateways in India. Today, MyTokri is a renowned name to find quality online deals and coupons and turn the large industry into an online deals area. It lists thousands of online deals from 200+ e-dealers in India to help you get the most happening deals every day. MyTokri works on the concept of “New day New deals”. They also have a spot on their website where customers can find new and updated deals of the day. It also lists and maintains thousand of active discount coupons for online shopping websites.

    DesiDime

    DesiDime Website
    DesiDime Website
    Company Name DesiDime
    Location Mumbai
    Founders Mehul Jobanputra & Jimish Jobanputra
    Founded 2010
    Website desidime.com

    DesiDime is a user-driven community for deals coupons and shopping online. Desidime is created to present a platform for users to cooperate, make friends, and share coupon information to make the best shopping deals. Started by cousins Mehul Jobanputra & Jimish Jobanputra and works as a community-driven social platform where people can contribute to the content, users can upload deals and coupons that they have found on the internet and can help others to save bucks.

    Conclusion

    There are other sites providing discount coupons and offers for online shopping for customers in India. The deal sites provide coupons for various e-commerce stores such as Amazon, Myntra, Flipkart, and many more for shoppers to get the product/service at a discounted price. With the rise of e-commerce in the country, seems like deal sites are thriving and will continue to thrive in the near future as well.

    FAQs

    What are deal sites?

    Deal sites mainly provide good discounts and exclusive deals while buying products from and services from e-commerce.

    Who founded Grabon?

    Grabon was founded by Bhanu Raju and Spandan Jaggumantri in 2013.

    Grabon is said to be the most popular deal site in India.

  • How to Build Your Business Around Hyperlocal On-Demand Delivery Model?

    E-commerce business has experienced an immense boom during the last decade and in that boom, the pandemic just added fuel to the fire. You can get anything delivered to your doorsteps with just a few clicks.

    Groceries, apparel, medicine, food, you name it and it can get delivered to you. How the world shop, has changed dramatically, we are more depended on online shopping now, reasons are quite evident. Online shopping is hassle-free, convenient, and doesn’t require much human interaction.

    Due to the rise of various E-commerce sites, it is obvious that people are noticing this industry and the demand is also increasing. Various startups are indulging themselves in this business. There are various business models that can be used in an E0Commerce business, one of them is the Hyperlocal Model. In this article, we will talk about how the Hyperlocal model can be used for your business. So, let’s dive in.

    “Thus, in the future, instead of buying bananas in a grocery store, you could go pick them off a tree in a virtual jungle.” – Yasuhiro Fukushima

    What is Hyperlocal Delivery Model?
    Features of a Hyperlocal Delivery Business Model
    Benefits of Hyperlocal Delivery Model
    How to Build Business around Hyperlocal Delivery Model?
    Companies that use Hyperlocal Model
    FAQ

    What is Hyperlocal Delivery Model?

    Hyperlocal means a certain small geographical area and a defined community. Your neighbourhood or your locality can be termed as hyperlocal. Through the hyperlocal model, a business can cater to the needs of the people from that certain locality. It is an online delivery model that fulfils the needs of the consumers with the help of a local ecosystem, which means the pickup and the delivery location need to be in the same zone.

    The business that uses this delivery model receives the order from the customer for a certain product or service through the app. Then the app passes on the details of the orders to the aggregator and then the aggregator assigns a person that will deliver the requested products or services to the customer’s place.

    Features of a Hyperlocal Delivery Business Model

    Below are some features of this model that makes it unique and useful:

    • The target area in this model is a certain place where people have a high demand for goods and services and through this those demands can be fulfilled instantly.
    • It takes care of the needs of people with the help of modern technology.
    • This model provides the deliveries for the goods extremely fast and they arrive at the customer’s doorstep in no time.
    • GPS, Social Media, and mobile applications are needed so that this model can function in your business.

    Benefits of Hyperlocal Delivery Model

    Some of the benefits that the Hyperlocal model gives out are:

    • The hyperlocal model helps the local retail stores gain the visibility that was endangered due to online shopping sites.
    • Retail shops enjoy a significant advantage and that is they don’t need to create and maintain an app for their business, they can just add their business on the E-commerce platform and it can function easily.

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    How to Build Business around Hyperlocal Delivery Model?

    If you are choosing the hyperlocal model for your E-commerce business, then you need to follow the steps below.

    Choose the Industry

    The first and foremost thing you have to do is select the industry around which you want to build the hyperlocal delivery model. It can be for groceries, food delivery, medicines or other products. The market you choose will decide the future of your business.

    Choose your Target Audience

    After selecting the industry, the next step is to decide your target audience. Not everyone can be your audience, so you must decide to whom you want to serve.

    Form the Partnership

    It is now time to partner up with the retail shop and the aggregator who will provide your customers with the products and services. You need to choose them carefully, as your business reputation depends on them. The delivery network has to be strong.

    Select a Revenue Model

    Think about how you want to earn revenue through this business and what model you want to use. There are inventory-led models, aggregator models and hybrid models in the hyperlocal business model. Choose the one that will go with your business.

    Develop an App

    In this step, you need to build an app, through which your customers, delivery partners, and suppliers will be connected. The app has to be user-friendly and hassle-free, this way it will strengthen your customer base.

    Companies that use Hyperlocal Delivery Model

    Haptik

    Through this app, you can book your movie tickets, recharge your phone, and order food.

    Zomato

    One of the biggest food delivery apps that serves the people of India. You can book a table in a restaurant, order food, and discovers multiple restaurants that serve your favourite cuisines.

    Pluss

    The app delivers your medicine to your doorsteps and can also conduct any tests suggested by your doctor here, they will deliver the report after completing your test.

    Blinkit

    This app delivers groceries to your place, not only that it also delivers other products including cosmetics and frozen foods.

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    Conclusion

    At present, the Hyperlocal model has become one of the most important ones in the E-commerce sector. In a fast world, having your things delivered to you in lesser times is one of the blessings of this model and that is what attracts the customers. With time, the apps by the businesses that follow this model need to be more developed so people can receive better services. The business will continue to grow when they try to better itself.

    FAQ

    What is the hyperlocal delivery model?

    The hyperlocal delivery model is an online business model where the demand of the customers can be fulfilled through local shops.

    What is Hyperlocal targeting?

    Hyperlocal targeting means targeting your audience from a selective geographically limited area.

    What is a Hyperlocal delivery system?

    It is a process of delivering goods from a seller to customers from the same locality.

    How would you build your business around an on-demand hyperlocal delivery model?

    Select the industry you want to operate in, select your target audience, Partner with an aggregator, build an app, and prepare a revenue model.

  • Nearbuy Success Story – How the Paytm-owned Company is Taking Hyperlocal E-Commerce to New Heights?

    Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Nearbuy.

    Owing to a lack of time and fair prices, everybody nowadays prefers online shopping. The eCommerce industry was last valued at $22 billion in 2018 and is estimated to be worth around $200 billion by 2027. Thus, the growth that the eCommerce industry is seeing is beyond comparison. This outstanding growth that the industry has seen and the exponential growth that is predicted for the industry could only be possible with the range of successful players and the pioneers of the idea. Moreover, the e-commerce players have rapidly grown over the past couple of years to become hyper-local entities to serve their customers better.

    Gurgaon-based Nearbuy is one of the firsts of Indian hyperlocal eCommerce companies. The Indian hyper-local eCommerce company, founded in 2010, has been built to extend an array of products across diverse categories for the customers to buy almost anything when it comes to services. So, whether the users want to dine online, relax at the best spas, or discover their city most intimately, it is Nearbuy that they looked up to.

    Nearbuy.com, which was formerly known as SoSasta, Crazeal, and Groupon, was formed in 2015 and now stands acquired by Paytm since December 7, 2017, when the digital payments giant acquired Nearbuy and its parent organization, Little, signed a merger deal of the two well-funded companies. The company still stands as a hyper-local, deals-based, e-commerce services company owned by Paytm.

    Here’s a look at Nearbuy.com and its Founders and Team, Mission and Vision, Startup Story, Business Model, Revenue Model, Growth, Funding and Investors, Competitors, Challenges Faced, Future Plans, and more.

    Nearbuy – Company Highlights

    Company Name Nearbuy.com
    Former Name Groupon India
    Headquarters New Delhi, India
    Parent Company Paytm
    Industry Hyperlocal eCommerce
    Founded 2015
    Founder Ankur Warikoo, Snehesh Mitra, Ankur Sarawagi, Sumeet Kapur, Sachin Kapur, Ravi Shankar
    Funding $37.2 mn (December 2021)
    Revenue $4.45 mn (Rs 33.28 crore in FY18)
    Areas Served India
    Website www.nearbuy.com

    Nearbuy – Latest News
    About Nearbuy and How it Works?
    Nearbuy – Mission and Vision
    Nearbuy – Founders and Team
    Nearbuy – Startup Story
    Nearbuy – Name, Logo and Tagline
    Nearbuy – Business and Revenue Model
    Nearbuy – Revenue and Growth
    Nearbuy – Funding and Investors
    Nearbuy – Competitors
    Nearbuy – Challenges Faced
    Nearbuy – Future Plans
    Nearbuy – FAQs

    Nearbuy – Latest News

    As of September 2019, Ankur Warikoo, the co-founder and ex-CEO resigned from Nearbuy. Warikoo announced that he would step down as CEO of Nearbuy in November, handing over the reins to co-founders Ravi Shankar and Snehesh Mitra. Shankar, who was previously the COO of Nearbuy, will take over as CEO, with Mitra taking over as COO of the Paytm-owned firm. Warikoo will remain a shareholder and member of the company’s board of directors.

    About Nearbuy and How it Works?

    Nearbuy.com (Nearbuy India Private Limited) is India’s first hyper-local online services platform, built to let consumers and local merchants connect and interact along with helping them get the best deals possible. The company was first founded as SoSasta and was eventually acquired by Nasdaq-listed Groupon Inc in 2011. The company then changed its name to Groupon India in 2013. Finally, the company was named Nearbuy in 2015 when Sequoia Capital India and Ankur Warikoo bought majority stakes in the firm. Ankur Warikoo has no longer been the CEO since November 2019 when Ravi Shankar was appointed for the position.

    Nearbuy.com was built with the aim to make things easily available for users. Whatever the needs of the customers may be, whether it is to enjoy fine dining, unwind at the world-class spas, or simply get their city known a little better, Nearbuy.com aimed to make all of them possible for the users.

    Nearbuy provides its merchants with a clear branding and visibility-driven network that makes it easy for consumers to find their businesses in and around their locations. Nearbuy is available in 35+ markets, 18+ categories, and 100,000+ unique places, with over 50,000 merchants.

    You can download the Nearbuy app from the Google Play Store or the iTunes Store to discover, purchase, and share exciting experiences around you.

    Nearbuy – Mission and Vision

    The mission statement of Nearbuy says, “We at nearbuy.com are taking hyperlocal ecommerce where it’s never gone before. So, if you thrive on the thrill of operating in a world of firsts, you belong at nearbuy.com.“

    Nearbuy – Founders and Team

    Ankur Warikoo, Ankur Sarawagi, Sumeet Kapur, Sachin Kapur, Ravi Shankar, and Snehesh Mitra are the founders of Nearbuy, which was founded in 2010.

    Ravi Shankar, current CEO and Co-Founder of Nearbuy
    Ravi Shankar, current CEO and Co-Founder of Nearbuy

    Ravi Shankar L

    Ravi Shankar did his Bachelors of Engineering before pursuing an MBA Marketing from Symbiosis Centre for Management and Human Resource Development. Ravi Shankar started with Wipro as a Presales Technical Consultant and went on to become the National Sales Manager there. Shankar was then the Business Director at Groupon. After leaving Groupon, Ravi Shankar joined Little Internet, where he was appointed as the CEO and Board Member. Nearbuy was the next company where he went on to become the COO, who was later appointed as the CEO for a brief period of more than a year. Shankar is currently serving as a Co-founder and Board Member of Nearbuy along with being the SVP at Paytm.  

    Ankur Warikoo

    Mentor, angel investor, and public speaker, Ankur Warikoo is a Hindu College and Michigan State University from where he graduated with a BSc in Physics and an MS in Astronomy and Astrophysics, eventually pursuing an MBA in Finance from the Indian School of Business. Warikoo started as the Head of APAC market at Groupon Inc and was then appointed as the CEO. He was also a co-founder and CEO of Nearbuy and is currently serving as a Board member. Along with this, Warikoo is an Educator and Content Creator at Brand Warikoo and a Board member of the Indian School of Business.  

    Ankur Sarawagi

    Another co-founder of Nearbuy, Ankur Sarawagi is an IIT Bombay alumnus from where he completed his BTech and MTech in Mechanical Engineering and Computer Integrated Manufacturing along with a Minor in Operations Research. Starting from Bain & Company, Ankur joined Groupon as the Director of Sales. However, it was only a brief stint that Ankur had with Groupon, eventually moving on to co-found Nearbuy. Ankur is currently serving as the Vice President, International Growth & Managing Director of WeddingWire India at The Knot Worldwide, which came into being as a result of the merger of WeddingWire and The Knot. Sarawagi has also served as the VP & Country Manager at WeddingWire.

    Snehesh Mitra

    Snehesh graduated from IIT Kharagpur in Electric and Electronics Engineering. Mitra was the co-founder Urban Blocks and Nearbuy along with being the CTO of the former and CTO, COO, and CPO of the latter organization. Mitra is currently serving as a Product Manager of Google. Along with these, Snehesh had also previously worked with Algo Works, Mobicules Systems, NDS Limited, Headstrong, HCL Technologies, and more in numerous key designations.

    Sumeet Kapur

    Sumeet Kapur is also known as the co-founder of Nearbuy. Kapur was a student of Delhi University from where he completed Bcom. (Hons.) before moving on to The Institute of Chartered Accountants of India and completing his CA degree. In his career, Sumeet has been the Co-founder and Director of Finance at Edutopper, CFO and Regional Financial Director of Emerging Markets (APAC), Co-founder and CFO at Nearbuy.com, Co-founder at Inflexion Point and is currently serving as a Founder and CEO at Wellcure.com.    

    Sachin Kapur

    Sachin Kapur is also a Delhi University alumnus, who next went to obtain a PGDBM, Management from the Centre for Management Development. Starting with a brief stint at Fever 104 FM, Sachin went to become a Sr. Manager Marketing and Strategy at BigRock. Leaving the company after a year and a half, Sachin Kapur then moved on to become the CMO of Groupon. He eventually became the CO-founder and CMO of Nearbuy. Presently, Sachin is serving as Sr. Director Marketing at Coupang.

    Nearbuy, owned by Paytm, is currently around 160+ employees strong.

    Nearbuy – Startup Story

    Nearbuy was formed or rather named in 2015. The company was founded as SoSasta in 2009, but it was acquired in 2011 by the Chicago-based parent of Nearbuy, Groupon Inc., in 2011 with an aim to begin operations in India. It then changed its name to Groupon India in 2013.

    Ankur Warikoo and Ravi Shankar worked for Groupon as executives, with the former leading the company after the founders of SoSasta left.
    After Sequoia enabled the exit of Groupon Inc in 2015, Groupon India was rebranded as Nearbuy. Nearbuy, along with Little, was purchased by the payments company Paytm in a distress deal two years later. Paytm helped promote a share exchange arrangement between Little and Nearbuy shareholders, which resulted in Nearbuy becoming a wholly-owned subsidiary of Little Internet.

    The purchase price for both companies was set at INR 272.31 crore. Following the acquisition, the company gained access to a large pool of capital along with a large Paytm userbase. It, however, struggled to make an impact because sales were unable to keep up with expenses. The company had total revenue of INR 33.28 crore in FY18, with losses of INR 49.11 crore.

    Nearbuy – Name, Logo and Tagline

    Nearbuy’s old name is Groupon India. After the rebranding of Nearbuy in August 2015, Groupon became a minority stakeholder in nearbuy.com.

    Nearbuy' s Company Logo
    Nearbuy’ s Company Logo

    “The Lifestyle App” is the tagline of Nearbuy. Nearbuy comes in and says “Let us give you a discount for visiting the place through us.”

    Nearbuy – Business and Revenue Model

    Nearbuy is an Online-to-Offline services ecommerce platform, which is currently owned and funded by Paytm, established to connect the consumers with India’s largest network of local businesses. nearbuy.com makes it easy for the consumers to discover their worlds along with helping them avail exclusive deals across categories such as restaurants, spas, salons, movie halls, retail stores, amusement parks and more.

    The key highlights of Nearbuy business and revenue model are as follows:

    • Nearbuy makes a contract with local stores and service-based businesses such as spas and salons.
    • Retailers promise to lower their rates in exchange for being featured on the website.
    • Nearbuy makes the majority of its profits by charging a fee of 2% to 25% of the sale price.
    • Retailers receive a substantial amount of revenue in exchange for providing such steep discounts on the website.
    • They often accept advertisements on the website, increasing the company’s revenue.

    Nearbuy – Revenue and Growth

    In terms of sales, FY18 was another low year for the firm. Though the company’s overall revenue rose by just 4.9% from INR 31.73 crore in FY17 to INR 33.28 crore in FY18, its basic turnover decreased by 16.4% from INR 28.22 crore to INR 23.58 crore. This simply suggests that the minuscule rise in sales was not due to the company’s main operations. Instead, it leaned on a 2.76X increase in other revenue, which increased from INR 3.52 crore to INR 9.7 crore.

    Nearbuy.com claims to be present in more than 33 cities across 18+ categories. Furthermore, the company has more than 68,000 merchants to deal with across 100,000+ unique locations. Here’s some more growth highlights of the company, as reported on March 2019:

    • It has a monthly active users count of 3 million
    • It receives around 7.5 million monthly visits
    • Nearbuy app has been downloaded by 4.9 million users
    • Nearbuy has 68,000+ merchant outlets
    • It has a market share of 88% in India

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    Nearbuy – Funding and Investors

    The Nearbuy funding is as follows:

    Date Round Amount Lead Investors
    Apr 3, 2017 Venture Round $15M Sequoia Capital India
    Sep 13, 2016 Debt Financing ₹150M BlackSoil
    Mar 10, 2015 Venture Round $20M Sequoia Capital India

    Nearbuy – Competitors

    Top competitors of Nearbuy are:

    Nearbuy – Challenges Faced

    The biggest obstacle, according to Ankur, the former CEO of Nearbuy, was to build the group, to which Nearbuy belongs. Users would mistakenly think of the business as a deal and discount platform, which is exactly what Groupon was. The mission of Nearbuy is to put the offline world online in a way that allows users to discover, buy, and save.

    Simply informing consumers that they can purchase their favorite restaurants, spas, salons, entertainment zones, hotels, brands, and other services online and then walk in to consume them while saving money is a huge challenge in and of itself. Few people get it, but the majority do not. They don’t consider it a normal part of their lives.

    “I often say this internally – our job at Nearbuy is not to grow the company, rather to build a completely new way for Indian consumers to explore the offline world which was a big task,” says Ankur.

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    Nearbuy – Future Plans

    Nearbuy expects revenue of INR 255.99 crore and a net profit of INR 17.73 crore by 2022-23. The estimated sales, according to Warikoo, are reasonable and vary from the Gross Merchandise Value (GMV, or total value of merchandise), which is much higher.

    “We are capitalized and on a growth expansion mode. As long as we are unit economics positive, we can manage our fixed costs with the investment raised out of this merger. The plan is to grow this number to 250,000 in three years. We have a maximum available universe of roughly around 350,000 merchants” says Warikoo.

    Warikoo claims that discretionary spending among Indian consumers has increased by more than doubling to 7% of individual income over the last decade.

    Nearbuy – FAQs

    What does Nearbuy do?

    Nearbuy.com (Nearbuy India Private Limited) is India’s first hyper-local online platform, allowing consumers and local merchants to connect and interact. Nearbuy.com makes it possible for you to enjoy fine dining, unwind at world-class spas, or simply get to know your city better.

    Who founded Nearbuy?

    Nearbuy was founded by Ankur Warikoo, Ravi Shankar and Snehesh Mitra in 2015.

    Which company owns Nearbuy?

    Paytm owns Nearbuy.

    How does Nearbuy make money?

    Nearbuy did not charge its merchant anything for setup. Customers are only charged a fee for each purchase they make. Depending on the popularity and category, the commission ranges between 2% and 25%.

    Which companies do Nearbuy compete with?

    Top competitors of Nearbuy are Gmarket, Magicpin, Paytm, Grofers India Pvt, Shopee, Blibli, Amazon India, Swiggy, CashKaro, and LivingSocial.

  • Everything You Need to know about Hyperlocal Business Model

    Smartphones have become the game-changer for the on-demand delivery business models. Buying groceries to ordering food, purchasing medicine to renting furniture, the rise of on-demand apps have made our life easier than before. Consumers now prefer to get all their basic need services at their doorstep so that they can save that amount of time and can get relaxed till their order get delivered.

    These on-demand apps have given acceleration to one such business that is known as hyperlocal business. The hyperlocal delivery business model is a perfect example of how technological advancements can unite with the age-old favourite shopping methods.

    What is Hyperlocal Delivery Business Model?
    Hyperlocal Delivery Business Model
    Benefits of Hyperlocal Delivery Business Models
    Supply chain models of a hyperlocal business
    How to build a Hyperlocal Delivery Network?
    Role of a hyperlocal delivery model in Covid-19
    FAQ’s

    What is Hyperlocal Delivery Business Model?

    The term ‘Hyperlocal’ refers to ‘a small geographical area’. Hyperlocal delivery model is when delivery of products is done within a particular geographical area. The pick up location from where the order is packed and the customer’s address should lie within the same pincode.

    This kind of delivery model works mostly in cases of groceries, medicines, regular household items, food delivery and even services such as plumbers, electricians, carpenters etc. The USP of hyperlocal e-commerce businesses lies in their ability to deliver products and services at unbelievably fast speed.

    Hyperlocal Delivery Business Model

    Hyperlocal  delivery model is defined as a business model in which the service aggregator acquires requested product locally and delivers the same to the customer in the same geographical area.

    Hyperlocal business model
    Hyperlocal Delivery Business Model

    For example, let us consider a hyperlocal on-demand business in food. When The customer places an order for the required food item through the dedicated mobile application, The aggregator receives the order and passes on the order details to a delivery partner. The delivery partner dispatches a delivery boy to procure the requested item from a local store and makes sure that it reaches the customer at a requested location. The aggregator drives the entire system and earns a commission for the role it plays.

    This model is applied to products as well as services like plumber, electrician, beautician, etc. The most popular example of a hyperlocal delivery model would be Zomato and Swiggy.

    Benefits of Hyperlocal Delivery Business Models

    Here are some of the benefits associated with hyperlocal delivery business model

    Supports traditional Stores

    The rise of e-commerce and online retail has been a threat to traditional stores. Hyperlocal delivery models provide them with an opportunity to optimize their sales.

    Minimal Efforts Required from Retailers

    Retailers can enlist their businesses on their respective platforms and grow their business. Everything from pickup to delivery is managed by the app aggregator. Hence retailers can grow their business with minimal effort.

    Helps build a sustainable ecosystem

    The hyperlocal delivery model is environment friendly as carbon footprints as long transportations are reduced.

    Single Device management

    A single mobile app can help you track, control and manage the entire hyperlocal marketplace.

    Supply chain models of a hyperlocal business

    Inventory-led model

    The inventory-led model is where you source your products directly from the brands and sellers and create an inventory of them. In this model, you are playing a direct role in the hyperlocal market. You have to track the demands of your customers and manage your inventory accordingly. You have to direct a team to manage inventory accordingly.

    Aggregator model

    Aggregator model can also be called as zero inventory model. In this delivery model you act as connecting link between the retailers and customers to ensure last-mile connectivity and delivery.

    How to build a Hyperlocal Delivery Network?

    Choose the product you you want to deliver or sell

    Firstly, you need to decide what products or services you would choose to deliver. Hyperlocal delivery models have tremendous utility and scope for success in a wide variety of sectors –restaurants, medicines, grocery, cabs, and hyperlocal logistics. You can target the local geographical locations and analyze the demand for a particular product or service.

    Identify your Target Audience

    Study the response of customers towards previous businesses. Your target audience may be busy professionals who have no time to head down to a restaurant for a meal, or you may target senior citizens who are unable to walk to their nearest grocery store.

    Market your product in your locality

    Your marketing strategy depends heavily on your target audience. You have to make your presence known by trying out different advertising methods that appeal to your audience.

    Build local partnerships with delivery agents

    Building  the network is an essential part of any business. in this you must create partnerships with two different parties – a delivery partner and the local merchants.

    You could receive the customer’s orders through your mobile app and ask the local merchants to send their delivery personnel to deliver the order. You can also opt for partnering with a delivery agency. Often delivery partners charge a fixed price per delivery and impose a minimum delivery cap.

    Decide on an Revenue model

    Your revenue model depends on two sources – commissions from the merchant-partners and delivery charges from the customers. Your local partners pay you an agreed percentage of the order amount as commission on every order placed from their store. Your partners will be happy to pay you more if you bring them more business. You can charge your customers a convivence fee if you wish, as most businesses are providing free delivery services.

    Launch a hyperlocal mobile app

    Now you need to start working on the platform. You need to build separate mobile apps for iOS and Android for each of the three parties – the merchants, the customers, and the delivery drivers. A feature-rich, user-friendly app plays a major role in creating a solid customer base.

    Role of a hyperlocal delivery model in Covid-19

    Due to lockdown restrictions many hotels and restaurants had to shut down, this was the the right time to get online, especially for offline merchants who were facing business ups and downs during this crisis. Many restaurant’s took their business online as they saw it as a fully wise decision to starting with an online business, so that even after the COVID19 crisis, they can get better growth.

    To survive and thrive in the industry, you need a robust admin panel, an efficient and effective customer tracking app, and a powerful delivery driver app. Furthermore, you should always concentrate on a consumer’s satisfaction. Measuring customer satisfaction should become your daily habit – not something you do from time to time. You can expect a massive growth of such businesses in the near future.

    FAQ’s

    1. What is a hyperlocal business?

    Ans- Hyperlocal businesses are referred to as businesses where one wants to build a local ecosystem that enables customers to buy anything from their neighborhood stores. Hyperlocal includes all businesses in your locality, the nearby stores, Restaurants, Market, Malls, Hotels, and other products and service providers.

    2. What is hyper local delivery model?

    Ans- The hyperlocal delivery model is a type of model when the product delivery is done within a particular geographical area. The pick-up location of the order and the customer’s address should be the same. This type of delivery model works mostly in businesses like groceries, medicines, household items, food delivery businesses, and even in jobs such as plumbers, electricians, carpenters, etc.

    3. How do I build a hyper local delivery company?

    Ans- In order to start a successful business with a hyperlocal model, you should choose a strategic approach. Below mentioned is a step-by-step approach that lists the processes which involve a hyperlocal on-demand delivery business.

    • Select the Industry
    • Choose a Niche
    • Identify your Target Audience
    • Seal the Deal (Create Partnerships)

    4. What are hyperlocal startups?

    Ans- A hyperlocal startup is a type of business that supports other businesses in delivering products such as Locus or Shadowfax or in delivery of products through a marketplace-like platform like Dunzo or Swiggy with Swiggy Go, or any other startups operating in this space in the Indian market.

    5. What is hyperlocal shipment?

    Ans- Hyperlocal delivery is the process of delivering goods directly from a seller to the customer. It’s the process that involves the operation of a courier agent picking up products from a seller and then delivering them directly to the customer’s address.