The hyper-local delivery space has always remained a challenge to many online players due to the logistics and the costs involved. If strategized properly, however, it can offer the best win-win situation for both the users and the trade partners. Dunzo, has demonstrated this successfully if you go by the 30 times growth the startup has achieved within just a year and a half.
The app-based hyper local service helps you in getting anything done; making deliveries from nearby stores and carrying your parcels for local delivery etc. The company has now introduced a new ‘Checkout with Dunzo’ concept which aims at helping small businesses make deliveries to their customers. This is a B2B logistics solution and hopefully many shopkeepers and other businesses can make use of it. The only requirement is the business entity has to have an online presence in the form of a website or an app.
Dunzo is currently present in very limited geography, Bengaluru, Chennai, Gurugram, Pune, Delhi and Hyderabad. The company says it is likely to handle 2 million orders in June 2019. They also claim to enjoy 80% repeat user rate. They are expecting to turn profitable at the order level even soon.
‘Checkout with Dunzo’ is quite similar to the payment options you find on any ecommerce site. As soon as you finish ordering, you choose this option and the retailer will call Dunzo to collect and effect the delivery to you. This is being launched on an experimental basis beginning with a retailer CakeZone in Bengaluru and as more businesses sign up, the offer will expand.
Interestingly there has even been a study done on the hyper local delivery business in India and the projection is it will reach around $317 million by 2020.
Companies like Swiggy who have a readymade infrastructure are also eyeing the hyper local delivery and is making some moves already. DoneThing, Haptik, HelpChat and Natasha (a personal assistant bot owned by Hike) are some of the other players in the country with their own hyper local delivery models.