Tag: hyperlocal delivery business model

  • Top 12 Profitable Delivery Business Ideas In India You can Start Now

    With the fast-moving lifestyle of today’s generation, everything is available to us with just a click on the internet. As people now believe in the concept of ‘Time is Money, they want everything to be done automatically within their reach without any fuss. Thus, taking advantage of this, many organizations have come up with some profitable delivery business ideas for the smooth delivery of things that are ordered by their customers daily.
    Nowadays, it has become a feasible option for everyone to get everything to their doorsteps. Be it groceries, medicines, food items, etc. you can order almost everything at your comfort. Interestingly, you can also think of starting your own profitable delivery business. Not only this will generate extra income, but also you can think of extending your venture into a larger one. A delivery service business can be a profitable venture, offering fast and reliable transportation of goods to customers’ doorsteps.

    What is a Delivery Busieness?
    Benefits of Delivery Business

    1. Courier Services
    2. Grocery Delivery Business
    3. Food Delivery Services
    4. Medicine Delivery
    5. Packers and Movers Service
    6. Laundry And Dry Cleaning Services
    7. Gift-basket Delivery
    8. Furniture Delivery
    9. Lunchbox Delivery
    10. Newspaper Delivery Services
    11. Flower Delivery
    12. Bread & Milk Delivery Business

    What is a Delivery Service?

    A delivery business involves transporting goods or services to customers at their location. This can include delivering food, groceries, packages, or other products. The business model often focuses on providing quick and reliable services, either locally or over longer distances, to meet customer needs efficiently.

    Benefits of Delivery Business

    The benefits of a delivery business include:

    1. High Demand: With the growth of eCommerce and online shopping, there is a constant need for delivery services.
    2. Low Startup Costs: Many delivery businesses can be started with minimal investment, especially if using personal vehicles.
    3. Flexible Hours: Delivery businesses often offer flexible working hours, which is appealing to both business owners and delivery drivers.
    4. Scalability: As demand grows, a delivery business can be scaled by adding more vehicles or expanding service areas.
    5. Wide Market: It can serve various industries like food, groceries, and packages, opening up multiple revenue streams.
    6. Recurring Revenue: With subscriptions or frequent deliveries, it can generate steady, recurring income.
    7. Ease of Entry: It’s relatively easy to enter the market, especially with the rise of app-based delivery models.

    Here is a list of some of the best profitable delivery business ideas, which can be useful if you are planning to step up in this niche.

    1. Courier Services

    Today couriers are a necessity for businesses and individuals. Both need personal service that ensures their deliveries will arrive at their destinations in a timely manner. There are many courier business ideas to explore, offering opportunities in local and express delivery services. Sending and receiving parcels from e-commerce websites are very common and this trend is continuously growing. It is highly increased due to the global pandemic. Consequently, many retailers have changed their sales platforms to websites or mobile applications and established a logistics system to distribute their products. The impact of this new form of e-commerce has discovered new opportunities for Logistics Service Providers (LSP), especially courier service companies. Delivery startups in India earn profits by offering efficient, fast, and reliable services that cater to the growing demand for online shopping, food delivery, and essential goods transportation.

    So, if you dream of owning a courier service, you can start as a delivery driver, and rely on self-employed delivery drivers to get the goods to customers. As the business grows, you can invest in delivery vans to handle bulky deliveries. To run a profitable courier service, ensure you have a reliable delivery car and proper time management skills. The global E-commerce market is projected to grow by 8.02% (2025-2029) resulting in a market volume of $5887 billion in 2029.

    2. Grocery Delivery Business

    During the pandemic, when all the businesses/factories were closed, all the people had to stay at home, then the food industry saw a lot of growth. Many new grocery shopping marts opened in metro cities and new grocery stores in 2/3 tier cities. So if you have a small grocery store, you can tie it up with a grocery mart, convert the retail show into a wholesale business, and make it a profitable business. Small business owners can choose to have a grocery delivery startup from their homes and increase their customers and profits by bringing your shop to the digital platform. Doorstep business ideas are great for providing convenient services like home cleaning, beauty treatments, or grocery delivery, making life easier for customers.

    A lot of big brands have joined this service department whose working model is different, like Walmart, JioMart, and Blinkit but the basic moto is that the grocery ordered with one click reaches your doorstep in a limited time. The Indian grocery market size is likely to increase to 852 billion U.S. dollars in 2025. India is the world’s fastest-growing grocery market.

    3. Food Delivery Services

    Delivery Business Ideas - Food Delivery Business
    Delivery Business Ideas – Food Delivery Business

    One of the most profitable delivery ideas on this list is food delivery service. Restaurants kept themselves alive by delivering food online when restaurants were closed during the pandemic, and food delivery companies like Zomato, Swiggy, and Uber Eats did the work of delivering the orders of restaurants to the doorsteps of the customers. To start your food delivery service, you can connect with the local restaurants, cafes, and famous food stalls of the city and provide them with a delivery person who will deliver the order to the customer on time. In this service, it is necessary to have experienced delivery boys, transportation, and the most important thing is the identification and insurance of the delivery boy.

    The food Industry is growing day by day, as per an industry report by Business Wire, the food delivery market in India is currently set to generate approximately $710 million from 2022 to 2026 while exhibiting a CAGR of 28.13%. Similarly, a separate report by IMARC Group claims that the online segment is projected to grow by 28.9% from 2022 to 2027.

    4. Medicine Delivery

    Indian E Pharmacy Market Growth Forecast
    Indian E Pharmacy Market Growth Forecast

    With the growing number of diseases and disorders, people are in dire need to get medical support constantly. Especially, senior citizens living alone cannot afford to come up to chemists or pharmacies every time to buy their medicines. So this can be one of the most profitable delivery businesses in India that you can take up. India’s E pharmacy market stood at $3 billion in 2024 and is expected to witness a rapid growth of approx 21.28% during the forecast period. People’s trust in online purchases has increased the work of online medicine delivery even more. Starting an online delivery business can be a profitable venture with the growing demand for quick and convenient services.

    You can also think of delivering medical test reports. This is also an essential thing that people need nowadays.

    5. Packers and Movers Services

    Packers and movers are a group of trained people who have a particular organization of their own with the main objective of helping clients during their relocation needs. The growth of the packers and movers market can be primarily attributed to the surge in urbanization and the growing trend of education and employment-related migration in India, which has given rise to nuclear families and flat cultures, thus creating a high demand for packing and moving services.

    The market size of packers & Movers Services in India is expected to reach $1.56 billion by 2025 at a CAGR of 15.5% during the forecast period (2018-2025). So this can also be a profitable delivery business idea, for which initially truck service can be taken by tying up with a logistics company, and gradually can buy your own pickup and truck.

    6. Laundry And Dry Cleaning Services

    Today’s fast-paced world and multiple tasks that pile up daily have created an increasing demand for laundry delivery services. Therefore, if you are looking for the most profitable laundry business ideas, you could consider the laundry pickup and delivery service. People are getting more concerned about cleaning services, especially during the pandemic situation. So, this can be a good idea to start a profitable delivery business with laundry and dry cleaning services. You can operate the business from home and invest more resources as you expand. With time, you can grow the company to a full-on-demand laundry service with your washers, a delivery van, and a physical location. It is one of the most profitable small delivery business ideas.

    The laundry market in India is growing at a rapid pace. The estimated size of the laundry market is INR 2,20,000 crore, with the unorganized market (which includes dhobis, maidservants, and mom-and-pop stores) valued at INR 5,000 crores.

    7. Gift Delivery

    A number of festivals and occasions are celebrated in our country. Gifts, cakes, and flowers are in demand throughout the year, these things are the most adaptable and endearing gifts people choose for their loved ones to express their feelings and gratitude. Be it for birthdays, anniversaries, weddings, or even formal corporate occasions. Some of the major players operating in the Indian gifting market are Archies, Ferns & Petals, and MINISO. Therefore, starting a gift delivery business can be very profitable.

    To start a gift delivery business, firstly choose a niche and learn what your target customers expect, you can create combos of different products to offer your target customer. Conduct competitor analysis and choose an appealing brand name. Creating an easy-to-navigate website that allows customers to customize their bouquets/cakes to their tastes and preferences will help you stand out. At last, a well-coordinated delivery system can take your business to the top of the gift delivery game. You can get in contact with any gift store, who are willing to get their items delivered. India’s gifting market is projected to grow to $159 million by 2025. Factors like creative packaging, personalized notes, initial engraved boxes, etc., together give a seamless buying experience to customers.

    8. Furniture Delivery

    Delivery Business Ideas - Furniture Delivery
    Delivery Business Ideas – Furniture Delivery

    Furniture has been an essential part of an Indian household for centuries. The Indian furniture industry is popular internationally because of its rich handicrafts and attractive traditional art and design. These days customers also have the convenience to order furniture both online and offline. Companies like Pepperfry, Urban Ladder, and others are generating significant revenue through online platforms. At the same time, surging trends of online shopping are pushing traditional furniture manufacturers, says Godrej, and Nilkamal to introduce and sell their products through online mediums.

    The furniture market in India is expected to grow at a rate of 6.05% from 2025 to 2029, reaching a market volume of US$7.83 billion by 2029. So looking at the changing graph of this industry, it also seems a profitable delivery service option. To start things at first you can connect with local furniture artists, their furniture can be sold online by bringing them on the e-commerce platform. Furniture can be delivered from a safe transportation medium to the customer.

    9. Lunch Box Delivery Services

    Today’s youth stay alone to pursue studies and jobs. They have to go to the office early in the morning, and after working all day it is not possible to cook food for themselves, so in this case, the lunchbox delivery option is the best. Looking at today’s working lifestyle, lunchbox delivery can also be made a profitable business option. Mumbai Dabbawala is a great example of this delivery business.

    10. Newspaper Delivery Services

    The only delivery business that assures you delivery every day. You need to get subscriptions from the houses that are willing to take the service. However, you will get leave only a day after the national holidays. This is because printing works come to a halt these days.

    11. Flower Delivery

    Shipping Business Ideas - Flower Delivery
    Delivery Business Ideas – Flower Delivery

    Flower arrangements and delivery businesses have become very popular recently. When people couldn’t meet their loved ones in person, they started sending flowers for different occasions. This kind of business doesn’t need to be like a regular flower shop in town. You can start an online flower delivery service with just a small space and a few delivery drivers. It’s a great option for local flower sellers who can’t go out but still want to make sales.

    12. Bread & Milk Delivery Business

    The bread and milk delivery business will always have demand, as customers can be found everywhere. Selling essential grocery items ensures a steady income and profit.

    You can serve both individuals and restaurants as clients. The key is to offer fresh products and maintain reliable sources.

    Conclusion

    With these fabulous profitable delivery business ideas in India, you can have a good business to start with. It is a growing business that can assure your growth over the years. You need to be very consistent and stay true to your customers.

    FAQ

    What is a delivery business?

    Be it groceries, medicines, food items etc., you can order almost everything at your own comfort. Such services provided by companies are referred to as delivery businesses.

    How to start delivery business in India?

    • Start With a Solid Plan.
    • Get Your Wheels.
    • Take Care of the Startup Essentials.
    • Decide on Your Location.
    • Choose Your Name and Structure.
    • Find the Best Financing.
    • Getting the Word Out to Customers.

    Is delivery business profitable?

    Yes, Deliveries of groceries, medicines, food items, are much in demand and they provide a much-needed service for any community. With a little hard work, your delivery business can be profitable in no time.

    How do I start a food delivery business from home?

    Collaborate with small and large restaurants to grow your business. Choose good PR channels to market your idea. You can use social media channels and inbound marketing options. Reach out to local food delivery services personally and get ahead with your plan.

    How to start a home delivery business in India?

    Grocery, food, medicine, tiffin, and flower delivery are great home delivery business ideas with high demand. To start a home delivery business in India:

    1. Choose a Niche
    2. Register Your Business
    3. Set Up a Supply Chain
    4. Build a Website/App
    5. Hire Delivery Staff
    6. Market Your Business
    7. Optimize Operations

    Which is the best delivery business to start?

    Grocery, food, medicine, and parcel delivery are the best delivery businesses to start for steady demand and profits.

    Which are the top 10 delivery companies in India?

    Delhivery, Blue Dart, Ecom Express, DTDC, Gati are a few top delivery companies in India.

  • 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.

  • 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.


    Nearbuy.com – Company Profile | Hyperlocal E-commerce Company
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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.

  • Story of NimbusPost: Creating Tech-enabled Logistic Ecosystem

    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 NimbusPost.

    The Indian logistics industry is expected to grow by USD 10.74 billion during 2021-2025. While there are many startups disrupting this industry with tech-based solutions, NimbusPost is determined to create a tech-enabled logistic ecosystem to provide the most beneficial shipping services to eCommerce sellers.

    Founded by Yash Jain and Rajeev Pratap, NimbusPost aims to bring together India’s leading local and national courier partners onto a single platform. Offering unmatched benefits like 17+ courier options, zero subscription cost, lowest shipping rates, API integration, access to real-time NDR panel, early COD settlements, and much more, NimbusPost has set a benchmark of quality logistics services.

    StartupTalky interviewed the founders of NimbusPost to know the company’s growth story & startup hacks. Also to get insight on NimbusPost’s products, how it started, its competitors, future plans & more…

    NimbusPost – Company Highlights

    Startup Name NimbusPost
    Founder Yash Jain and Rajeev Pratap
    Headquarters Gurgaon
    Founded 2018
    Industry Logistics
    Website nimbuspost.com

    NimbusPost – About and Vision
    How NimbusPost Works – Services offered
    NimbusPost – Logistics Industry Details
    NimbusPost – Founder and Team
    NimbusPost’s Ideation – How it Started
    NimbusPost – Challenges Faced
    NimbusPost – Name Meaning and Logo
    Launch & Strategic Growth Hacks of NimbusPost
    NimbusPost – Funding
    NimbusPost – Competitors
    NimbusPost – Recognitions and Achievements
    NimbusPost – Current State and Future Plans
    NimbusPost – FAQs

    NimbusPost – About and Vision

    NimbusPost is one of the leading logistics platforms in India. With the team’s strong technical background and a reliable customer support team, NimbusPost offers tech-enabled logistics services to SMEs and large enterprises.

    Its vision is to create a tech-enabled logistic ecosystem to provide the most beneficial shipping services to eCommerce sellers. As a young company, with a fresh outlook towards business issues, it aims to help businesses overcome their day-to-day order-fulfillment challenges.

    “We believe in looking for solutions when others see only problems. By creating an advanced, multi-faceted logistics platform, our mission is to be the first choice for every logistics need of online sellers” as said by NimbusPost’s founders.

    Here’s the list of the Most Trusted Ecommerce Shipping Companies in India.

    How NimbusPost Works – Services offered

    The key attribute of NimbusPost’s services is to make shipping easier for businesses by automating their shipping process. The use of advanced technology like AI and automation empowers it to provide quick and hassle-free shipping, lesser RTO, maximum transparency, quick COD remittance, integration to eCommerce channels along with many other benefits.

    Following are some points highlighting how NimbusPost helps online sellers take care of their shipping challenges.

    • Wide range of courier options: Depending on a single courier partner keeps the sellers from serving customers in all locations. As NimbusPost brings India’s top 17+ local and national courier partners (DTDC, FedEx, Blue Dart, UPS, Delhivery, Gati, XpressBees, etc.) on a single platform, sellers can deliver packages to 27000+ pin codes across India, including even the remotest locations.
    • Reduce RTO: High return shipments mean high RTO. Delayed shipments and fake delivery attempts are the major reasons behind the increased RTO percentage. As NimbusPost offers the quickest deliveries with help of India’s leading courier partners, it can help reduce RTO orders. Also, by accessing the NDR panel in real-time, sellers can act on RTOs immediately and resolve them to reduce the RTO.
    • NDR panel: High RTO and fake remarks can cost a lot to the online sellers. NimbusPost allows real-time access to the NDR panel to let the sellers verify and resolve each RTO request at the earliest.
    • Shipping cost: Shipping at higher costs limits the online sellers from earning a good margin, but NimbusPost suggests courier partners that can offer delivery services at the best rates.
    • Auto cloud-calling: Without receiving any confirmation for COD orders, it’s difficult for online sellers to segregate spam orders from real ones, which mostly results in high RTO. NimbusPost’s automated cloud-call feature for COD order confirmation allows the sellers to immediately confirm the COD orders and manage the shipping accordingly.
    • Integration: Using NimbusPost’s integration feature, online sellers can directly ship the orders from their online stores on Amazon, Shopify, WooCommerce, Magento, Prestashop, and Unicommerce.
    • Early COD remittance: Waiting for months for COD settlements disrupts the cash flow for proper inventory management. NimbusPost offers the quickest COD remittance or even same-day COD withdrawal* on request to help the sellers with non-stop cash flow.
    • Real-time tracking: NimbusPost offers real-time order tracking to its sellers and end customers which enhances the sellers’ post-shopping experience and customers’ shopping experience to a great extent.
    • Zero subscription fee: Paying a high subscription fee adds to the unnecessary expenses of the online sellers. NimbusPost offers a free account set up and subscription to its services to allow the sellers to find their best shipping partner for each shipment.

    NimbusPost – Logistics Industry Details

    The sudden rise in the number of online purchases after the pandemic hit the world became the primary reason for the eCommerce industry’s exponential growth. This growth further led to the substantial growth of the logistics sector. Considering the pattern of online shopping is going to be continued by 67% of urban Indians even after the pandemic is over, eCommerce logistics is likely to grow at a rapid rate in the next 5 years. Stats show that the Indian logistics industry is expected to grow by USD 10.74 billion during 2021-2025.


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    NimbusPost – Founder and Team

    NimbusPost was founded by Yash Jain and Rajeev Pratap together in 2018. Both the founders lead the strategies related to methodology, marketing, and clients.

    Currently, NimbusPost is a team of 200+ logistics specialists and technology experts who work together to make a difference under experts’ guidance.

    NimbusPost Owner, Founders
    NimbusPost Founders – Yash Jain and Rajeev Pratap

    NimbusPost’s Ideation – How it Started

    NimbusPost’s foundation story goes back to the time when its founders, Yash and Rajeev, came across the shipping woes of e-commerce sellers. Most online sellers would struggle with their business because of being associated with less-motivated third-party courier partners. Be it a delayed delivery, damaged package, or some other shipping issue, the sellers would have to pay the price. Their dependency on these courier partners would often lead to a negative customer experience and eventually business loss.

    With NimbusPost, the founders aimed to bridge the gap between buyers and sellers with the help of professional shipping services. When they saw how much loss the e-commerce sellers had to bear owing to the everyday shipping obstacles, Rajeev and Yash saw an opportunity to create a quick and hassle-free shipping solution by bringing together India’s leading local and national courier partners onto a single platform.

    NimbusPost – Challenges Faced

    The biggest challenge that the team faced so far was right at the inception, which is to develop a tech-enabled platform using state-of-the-art tools and enlisting the country’s leading national and local courier partners to help the sellers maximum pin codes throughout the country.

    Apart from bringing on board names such as Blue Dart, Delhivery, XpressBees, FedEx, Gati, Shadowfax, and DTDC, NimbusPost has also joined hands with some of the best e-commerce platforms too such as Shopify, Magento, WooCommerce, and Unicommerce, Prestashop, etc. to come up with a brilliant customer service dimension to its logistics platform. Today, NimbusPost has a strong team of 200+ logistics and technology experts all of whom are between 25 and 40 years of age.


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    Another word for “parcel post”, the name “NimbusPost” signifies shipping. The moving design of its logo symbolizes smooth shipping flow.

    NimbusPost
    NimbusPost Logo

    Launch & Strategic Growth Hacks of NimbusPost

    NimbusPost has been a seller-centric platform since the beginning and has focused on easing out the shipping problem areas of online sellers. By using advanced technology, it has been able to offer unique features along with the free signup benefit to its clients. Offering all these benefits led NimbusPost to gain its first 100 customers.

    The key strategic hacks of NimbusPost are:

    • Tech front – It offers the most advanced technology platform
    • Traditional Marketing front – Groundwork has been the startup’s key strategy to reach the platform where it is today. NimbusPost participated in various industry events like seminars, webinars, exhibitions to make its footprint in the market
    • Digital footprint: Using the complete 360 of digital marketing space to create the buzz about our tech-enabled platform in the market
    • Alliance front: Strategic alliances with the industry leaders
    • Economical Pricing &  Upgraded services

    NimbusPost – Funding

    NimbusPost started as a bootstrapped organization and has a self-sustainable revenue model.


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    NimbusPost – Competitors

    Offering unmatched benefits like 17+ courier options, zero subscription cost, lowest shipping rates, API integration, access to real-time NDR panel, early COD settlements, and much more, NimbusPost has set a benchmark of quality logistics services. However, it considers Shiprocket and Shyplite to be its major competitors. Learn how to do competitor analysis in 5 easy steps.

    NimbusPost – Recognitions and Achievements

    • Recognized by major media platforms like Hindustan Times, Outlook India, and others for its efforts to provide enhanced logistics solutions.
    • NimbusPost recently won the Logistics Tech Startup of the Year Award at an award show hosted by Franchise India.
    • Gaining 10,000+ customers in only 365 days is another major achievement of NimbusPost.

    NimbusPost – Current State and Future Plans

    Currently, NimbusPost register 2 million+ transactions every day and have 10,000+ happy sellers. It aims to double this number soon by increasing its operation areas.

    As the startup is about to launch hyperlocal delivery, cross-border services, and more in the coming months, NimbusPost aims to reach a notch higher in terms of operations, quality of services, number of sellers, and business revenue.

    • Cross Border Logistics – Delivering products across the border isn’t possible for all online sellers due to various legal restrictions. NimbusPost’s cross-border logistics service will aid online sellers with cross-border trade very soon.
    • Hyperlocal Delivery – Through its hyperlocal delivery services, sellers will be able to enjoy an exceptional distribution experience. Retail sellers offering grocery, pharma products, food, etc. will be able to deliver at customers’ doorsteps in minimal duration.

    NimbusPost – FAQs

    What is NimbusPost?

    NimbusPost is one of the leading logistics platforms in India. With the team’s strong technical background and a reliable customer support team, NimbusPost offers tech-enabled logistics services to SMEs and large enterprises.

    Who are the founders of NimbusPost?

    NimbusPost was founded by Yash Jain and Rajeev Pratap in 2018.

    Is NimbusPost bootstrapped startup?

    NimbusPost started as a bootstrapped organization and has a self-sustainable revenue model.

    How does NimbusPost make money?

    NimbusPost stands with the notion – ‘Pay only for what you ship!’. It has various plans like Starter (starts @ 27/500 gm), Enterprise (starts @ 24/500 gm) & so on. Services under each plan differ a little based on the need of businesses.

    Who are the competitors of NimbusPost?

    NimbusPost considers Shiprocket and Shyplite to be its major competitors.

    What is NimbusPost’s vision?

    NimbusPost’s vision is to create a tech-enabled logistic ecosystem to provide the most beneficial shipping services to eCommerce sellers.

    Is NimbusPost an Indian Company?

    Yes, NimbusPost is an Indian company headquartered in Gurgaon.

  • Instacart Startup Story – Delivering Groceries Instantly

    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 Instacart.

    Instacart is a supermarket delivery and pick-up service based in the United States and Canada. A website and a smartphone app are used to provide services. Customers can order groceries from participating stores and have a personal shopper do the shopping for them according to their will. Founded by Apoorva Mehta, Max Mullen and Brandon Leonardo in 2012.

    The CEO and Co-founder of Instacart, Apoorva Mehta founded 20 businesses in the early 2010s, including a social network for lawyers and an ad network for gaming firms, as part of a surge of entrepreneurial spirit. Mehta developed the method, which targeted his former employer, using his background as an Amazon supply chain engineer.

    Know more about the Instacart Startup Story, its business model, revenue, competitors, funding, investors & more in the post ahead.

    Instacart – Company Highlights

    Startup Name Instacart
    Owner Maplebear Inc
    Headquarters San Francisco, California, US
    Industry Grocery Delivery, Retail
    Founders Apoorva Mehta, Max Mullen, Brandon Leonardo
    Founded 2012
    Current CEO Apoorva Mehta
    Revenue $1.5 billion (2020)
    Total Funding $2.41 billion
    Valuation $39 billion (2021)
    Website instacart.com

    About Instacart and How it Works?
    Instacart – Recent News
    Instacart – Name, Logo and Tagline
    Instacart – Founder and History
    Instacart – Mission and Vision
    Instacart – Partners
    Instacart – Business Model and Revenue Model
    Instacart – Revenue and Growth
    Instacart – Funding and Investors
    Instacart – Acquisitions
    Instacart – Competitors
    Instacart – Challenges Faced
    Instacart – Future Plans
    Instacart – FAQs

    Instacart – Recent News

    March 2021 – Instacart, a US grocery delivery service, is considering going public through a direct listing, fearful of missing out on money through a typical initial public offering (IPO).

    Instacart will become the latest company to forego an initial public offering (IPO), which has been the primary route to a stock market launch for decades, because it risks selling the offering too low in comparison to where its shares end up trading. A direct listing occurs when a company goes public without first raising funds via a stock sale.

    About Instacart and How it Works?

    Instacart Inc. is a corporation that provides same-day grocery delivery services. Customers can order groceries from a variety of retailers through an online application portal and have them delivered by personal shoppers. Customers in the United States can use Instacart.

    Food and household essentials are sourced from a variety of local stores by the company. Customers can place orders from several stores at once and receive same-day delivery.

    In terms of their own implementation, Instacart has a nice app that makes ordering and reordering favorite products easy. Customer service is excellent; they go out of their way to ensure that the customer is satisfied. Instacart has been been refining features/processes for dealing with product substitutions, shopper mistakes, and promoting tipping.


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    Instacart – Name, Logo and Tagline

    Instacart is a same-day grocery delivery service that promises delivery in as little as one hour, or in other words, instantly. The business, which currently focuses on delivering groceries and household essentials, plans to expand into other verticals in the near future.

    Instacart Success Story
    Instacart logo

    Instacart’s slogan, “groceries delivered in an hour,” is all too common in today’s world, which expects everything to be available with a tap on a smartphone.

    Instacart – Founder and History

    Instacart was founded in 2012 by Apoorva Mehta, a former Amazon.com employee and entrepreneur and his friends, Max Mullen and Brandon Leonardo.

    Instacart' s Founders
    Instacart Founders – Apoorva Mehta, Max Mullen, Brandon Leonardo.

    Apoorva was born in India and immigrated to Canada with his family in the year 2000. He earned his bachelor’s degree in engineering from the University of Waterloo in 2008. He was a part of the Summer 2012 batch of Y Combinator, which contributed to the launch of Instacart.

    Instacart began operations in San Francisco. The company had around 200 employees by April 2015. It implemented a new policy in June that allowed certain shoppers to opt to work part-time, beginning with Chicago and Boston and then expanding to Atlanta, Miami, and Washington, D.C. the following month.

    Instacart – Mission and Vision

    “Our goal is to build a world where everyone has access to the food they love and more time to enjoy it together,” says Instacart’s mission statement. Instacart aims to be the service to ‘deliver your groceries within an hour’.

    Instacart – Partners

    Albertsons, ALDI, Costco, CVS, Kroger, Loblaw, Publix, Sam’s Club, Sprouts, and Wegmans are only a few of the national and regional stores that Instacart works with. Customers love the Instacart marketplace, which has over 300 stores and trusted local grocers.


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    Instacart – Business Model and Revenue Model

    Instacart uses a shared economy-based business model to offer hyper-local on-demand grocery delivery by linking consumers with personal shoppers. Instacart does not own a grocery store; instead, it serves as a marketplace for grocery stores to sell their wares.

    Customers can use the mobile app to choose their preferred grocery store, browse through grocery items, add quantity, and confirm their order. The shoppers are self-employed or part-time Instacart employees who obtain the order, shop for the products requested by the customer, and deliver them to their door. Customers pay using the app and receive their goods without having to leave the house.

    Instacart makes money from the companies’ distribution and placement fees.

    Instacart – Revenue and Growth

    • Instacart reportedly generated $1.5 billion revenue in 2020, with $35 billion worth of sales
    • During the coronavirus pandemic, Instacart hit its first profitable month, netting $10 million
    • Instacart has an estimated 9.6 million active users and over 500,000 shoppers who pick up the items
    • In March 2021, Instacart was valued at $39 billion

    Although Instacart does not release usage figures, in the first half of 2020, it added 300,000 more “shoppers,” or riders who pick up and deliver groceries. It employed fewer than 100,000 people at the end of 2019. With $35 billion in grocery sales in 2020, it will employ 350,000 more people.


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    Instacart – Funding and Investors

    Instacart has raised a total funding of approximately $2.41 Billion from investors like Tiger Global Management, DST Global, Sequoia Capital, Coatue among others.

    As of March 2021, Instacart is considering going public through a direct listing, fearful of missing out on money through a typical initial public offering (IPO).

    Here is the Instacart Funding details –

    Date Round Amount Lead Investors
    Mar 2, 2021 Venture Round $265M Andreessen Horowitz, D1 Capital Partners, Fidelity Management and Research Company, Sequoia Capital, T. Rowe Price
    Oct 8, 2020 Venture Round $200M D1 Capital Partners, Valiant Peregrine Fund
    Jul 3, 2020 Private Equity Round $100M T. Rowe Price
    Jun 11, 2020 Venture Round $225M DST Global, General Catalyst
    Nov 15, 2018 Series F $271M Tiger Global Management
    Oct 16, 2018 Series F $600M D1 Capital Partners
    Apr 5, 2018 Series E $150M Coatue
    Feb 12, 2018 Series E $200M Coatue
    Mar 8, 2017 Series D $400M Sequoia Capital
    Mar 10, 2016 Funding Round Whole Foods Market


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    Instacart – Acquisitions

    Instacart has acquired 3 companies to date which are – MightySignal, Unata and Wedding Party. The deal amount of the transactions were undisclosed.

    Instacart’s Acquisitions details are as follows-

    Acquiree Name About Acquiree Date
    MightySignal A mobile application index that enables businesses to make sense of data patterns generated by mobile app companies. Nov 5, 2018
    Unata A platform that provides Omni-commerce for retailers, connecting digital touchpoints to personalize shoppers’ experiences. Jan 16, 2018
    Wedding Party An app that collects wedding photos from guests and provides updates on the wedding details. Aug 4, 2015


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    Instacart – Competitors

    Amazon Fresh (which uses the Webvan model), Google Shopping Express, and others are competitors (non-perishable items at the moment). Amazon and Google are also well-known brands with deep pockets. Uber Rush may be able to penetrate this market. Uber Eats, Munchery, Blue Apron, Plated, and Hello Fresh are all meal delivery services that compete with Instacart.

    Instacart – Challenges Faced

    • Dependencies on grocery store participation
    • Fierce competitors
    • Process standardization

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    Instacart – Future Plans

    Instacart is making several big improvements to its business model as part of its plan to help grocers own the digital food future. As part of its effort to boost grocery e-commerce for its retailer partners, the organization is investing its capital in a variety of new ways.

    Investing in helping retailers achieve greater operational efficiencies through e-commerce, enhancing customer service, and further scaling its technological teams to better meet the increased customer demand for food delivery and pickup are just a few of them.

    The business believes the industry should concentrate on delighting consumers, and that aim was a guiding principle when it increased its customer service team from 1,200 to 18,000 agents early in the pandemic. Late deliveries, missing products, incorrect item substitutions, and out-of-stocks are common complaints among grocery e-commerce customers which the company has taken care of.

    Instacart – FAQs

    What does Instacart do?

    Instacart Inc. is a corporation that provides same-day grocery delivery services based in the United States.

    Who founded Instacart?

    Instacart was founded in 2012 by Apoorva Mehta, a former Amazon.com employee and entrepreneur.

    What companies do Instacart compete with?

    Amazon Fresh (which uses the Webvan model), Google Shopping Express, and others are competitors (non-perishable items at the moment). Amazon and Google are also well-known brands with deep pockets. Uber Rush may be able to penetrate this market.

    How does Instacart make money?

    Instacart uses a shared economy-based business model to offer hyper-local on-demand grocery delivery by linking consumers with personal shoppers. Instacart does not own a grocery store; instead, it serves as a marketplace for grocery stores to sell their wares.

  • 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.