It's incredible that Zepto is able to maintain its 10-minute promise in the urban jungle of India's cities! Really interesting how India's unique culture and society create business opportunities that seem alien to me growing up in American culture. Thanks for another great read!
I am visiting India currently and used Blinkit a couple of times. A few observations - Handling and delivery charges are a prominent part of the total cheque, sometimes as high as the AOV. These also vary by time of the day with early mornings/late hours being discouragingly expensive. Delivery times vary drastically between off and regular business hours.
Very interesting read !! Thanks. I believe that growth in platforms like Zepto and Rebel Foods will require variety in offerings and pricing innovations. So far these platforms have capitalized on the need for quick gratification. Combining the operational efficiency with product variety (through partner ecosystem) and right subscription models should help in profitability and sustainable growth.
India was, and still is, fee sensitive culture. Even people who are in the India1 (https://sajithpai.medium.com/india2-english-tax-and-building-for-the-next-billion-users-198701f0a7a6) (I know he did a bit more refined model around 2023-2024 with India1 and India1-A) are not willing to pay much. I also agree with Prof Aswath Damodaran that these delivery companies are succeeding because the infrastructure is a mess in India (bad infra means people do not want to venture out to buy stuff, esp after work). So I am not sure if these companies will ever make money purely of delivery. Also, a Kirana store in India (esp in Tier2 and 3 cities) can even operate from a shop in their home and thus do have cost advantage and they can keep their margins lower as well.
Do you think these companies have business model in India as pure delivery?
Such a fascinating read!
Really helpful read, thank you, professor!
It's incredible that Zepto is able to maintain its 10-minute promise in the urban jungle of India's cities! Really interesting how India's unique culture and society create business opportunities that seem alien to me growing up in American culture. Thanks for another great read!
I am visiting India currently and used Blinkit a couple of times. A few observations - Handling and delivery charges are a prominent part of the total cheque, sometimes as high as the AOV. These also vary by time of the day with early mornings/late hours being discouragingly expensive. Delivery times vary drastically between off and regular business hours.
Loved this one. The Dabbawalas "tech free" logistics system is a fascinating reframe.
Very interesting read !! Thanks. I believe that growth in platforms like Zepto and Rebel Foods will require variety in offerings and pricing innovations. So far these platforms have capitalized on the need for quick gratification. Combining the operational efficiency with product variety (through partner ecosystem) and right subscription models should help in profitability and sustainable growth.
India was, and still is, fee sensitive culture. Even people who are in the India1 (https://sajithpai.medium.com/india2-english-tax-and-building-for-the-next-billion-users-198701f0a7a6) (I know he did a bit more refined model around 2023-2024 with India1 and India1-A) are not willing to pay much. I also agree with Prof Aswath Damodaran that these delivery companies are succeeding because the infrastructure is a mess in India (bad infra means people do not want to venture out to buy stuff, esp after work). So I am not sure if these companies will ever make money purely of delivery. Also, a Kirana store in India (esp in Tier2 and 3 cities) can even operate from a shop in their home and thus do have cost advantage and they can keep their margins lower as well.
Do you think these companies have business model in India as pure delivery?