From walking to our favorite hotel/restaurant and getting hands-on delicious food, to getting it delivered to our doorstep within a few clicks and having it in the comfort of our home we all grew up.
Who would have thought getting biryani in 20-40 minutes is possible, whereas cooking involves a lot of items and time, thanks to Swiggy, Zomato, and other food delivery platforms for making it possible in this fast-moving world saving time and efforts of many households and giving so much relief for bachelors. Not only food but Groceries and other consumable goods/products are also getting delivered to our doorstep through zepto, Swiggy Instamart, Blinkit, Dunzo.
Zomato was founded in the year 2008 and became a unicorn in the year 2018 and it has gone under IPO (Initial Public Offering) in the year 2021. whereas swiggy was founded in the year 2014 and achieved unicorn status (The second fastest Indian company) in the year 2018.
Business Model of Swiggy and Zomato: The Business model of Swiggy and Zomato is B2C (Business-to-Customer) where it acts as a bridge between hotels/restaurants and customers and offers a digital platform for customers to order food in selected restaurants’.
3 2 1 Go…….
Evolution of Delivery systems in India
• FedEx and Indian post delivered letters in the span of one week.
• Amazon perfected one day delivery of products.
• Swiggy, Zomato, Uber Eats and Blinkit delivering food within 30 minutes.
• Zepto, Swiggy Instamart Delivering groceries in 10-15 minutes.
And the evolution of Quick E-Commerce is not hundred percent complete with zomato delivering food within 10 minutes taking the competition to whole new numbers.
Distribution is King
1) Hyperlocal Delivery System: When a customer orders a product online (let’s say on Zomato) the order is received by the restaurant, and then it prepares the required item and hands it over to the delivery person and he/she delivers the same to the customer. The customer can track the entire time line (Preparation of food, delivery person name and his current location) on his mobile through the food delivery app.
2) Dark stores: With quick E-Commerce becoming the new normal the functioning of dark stores has been increased to a very next level and these dark stores became the lifeline of quick E-Commerce.
Dark store is a kind of warehouse where a large number of different kinds of products are kept in one place and will be delivered according to the orders the store receives. To become a successful quick E-Commerce company dark stores play an important role.
Functioning of Dark Store: When a customer orders a product/products through the app on their phone, staff at the dark store receive the order and starts picking up the products which are laid out in a way that speeds up the packing process and then the packed products are given to delivery person and the delivery person delivers the products in minutes.
For faster delivery many Grocery delivery companies place dark stores in and around a particular city in large number, more number of dark stores in the vicinity faster the delivery.
Role of Pandemic: The buying behaviour of customers changed from offline to online due to the Covid-19 pandemic. With Digital penetration E-Grocers companies like BigBasket has seen a jump of 300-350 percent in the pandemic, whereas food aggregators like Zomato and Swiggy have witnessed a downfall of 60% because people denied eating restaurant food.
The Game of Minutes
According to a RedSeer report, the quick commerce of India is expected to reach $5billion by 2025 from $300 Million (Current reach).
Swiggy Instamart: When swiggy launched its new service named Swiggy Instamart it promised to deliver the Groceries within 15-20 minutes based on the location of the customer. Swiggy succeeded in doing this through the use of dark stores which are placed in large numbers in and around the cities.
Blinkit: Blinkit formerly known as Grofers also offers faster delivery through the use of dark stores with Zomato having a stake (9.3%) in Blinkit it is indirectly competing with swiggy instamart. Blinkit offers 10-minute Grocery delivery in 12 cities.
Dunzo: Reliance Jio invested 200 Million dollars in Dunzo to set up hyperlocal delivery through the use of dark stores. The hyperlocal logistics of Dunzo is operated by Reliance Retail. Duzo promises 19 minute delivery with over 2,000 Essentials in Bangalore.
What makes Zomato stand out???
With Zomato having a stake in Blinkit it marked its presence in both Food and Groceries delivery market, but zomato is not done yet on March 2, 2022, Deepinder Goyal Founder and CEO of Zomato announced “10 Minute Food Delivery is coming soon on Zomato” which made people think “Ordering Time > Delivery Time”.
Officials of Zomato stated that they will be relying on “Finishing Counters” which are located in and around high customer neighborhoods’ Deepinder Goyal stated the following which tells us about the working of “10 Minute Delivery Model”
• 10 Minute Delivery will be specific for nearby locations, popular and standardized items which can be dispatched in 2-3 Minutes.
• Delivery partners are not informed about promised delivery time (for both 10 minute and 30 minute deliveries).
• No penalties for late deliveries and incentives for on-time deliveries ((for both 10 minute and 30 minute deliveries).
• Educating delivery partners on road safety and providing accidental/ life insurance as well.
Zomato is experimenting 10 minute delivery model in gurgaon with four finishing stations with 20-25 bestseller items.
Plan of Action
Officials of Zomato stated that they will be relying on “Finishing Counters” which are located in and around high customer neighborhoods’. Zomato is also in talks with several restaurants to set up cloud kitchens. Cloud Kitchen is a place that is designed for take a ways and delivery of food directly to the customers it eliminates the seating facility for customers. It is also looking for different options where restaurants can deliver selected items from the menu directly, zomato invested $5 million in Mukunda foods a robotic company that prepares food through the use of robots and this setup also keeps the food fresh and hot when it is picked up by a delivery person.
Even though “10 Minute” food delivery seems fascinating on paper many people feel it keeps the delivery partner on stress which may lead to rash driving and accidents. So what’s your take on this, let us know in the comment section.
Very well written
ReplyDeleteIt has given me a whole new overview of logistics in perishable goods....very well done.
ReplyDelete