Everything is accessible at our fingertips with mobile applications. Individuals find it convenient to order online with just a few clicks, which led to a boost in delivery services. Lacs of jobs is being created with the growing demand. With the pandemic, quick commerce startups, like Zepto, BlinkIt, Dunzo, etc. are rising with tremendous growth. Consumer behaviors have changed with COVID 19 outbreak. Due to social distancing norms, consumers tend to prefer online delivery as a safer and hassle-free alternative. Online delivery in the grocery market has shot up by 80% with lockdown in 2020. India's quick commerce market is about to reach $5.5 billion by 2025. It is predicted to increase by 37.1% at a compound annual growth rate (CAGR). This untouched sector has grown tremendously with the change in consumer habits, the tech-savvy generation, and of course the COVID-19 outbreak.
What is a quick commerce startup?
Quick commerce can be simply defined as the delivery of consumable goods within a span of one hour of placing an order. It focuses on delivery in smaller quantities and essential commodities. These quick commerce services are mostly active in Tier 1 and Tier 2 cities. With changes in consumer behaviors quick commerce has great potential for development.
Let's now talk about quick commerce startups like Zepto, Blinkit, and Dunzo.
Delivery platforms Zepto and Blinkit promise to provide delivery of essential groceries within 10 mins of placing an order. Whereas, Dunzo promises to provide deliver groceries between 19 mins to 29 mins. These companies work in the quick commerce segment and with an instant service model. These startups deliver groceries and other essential commodities at a minimum time with help of micro and mini warehouses located within a radius of under 5 kilometers. Below is a deeper look into these startups:
Zepto founders:
Zepto operates with the legal name KiranaKart Technologies Private Limited., is a non-government company limited by shares founded in the year 2021, with headquarters in Mumbai. Zepto's founders are Stanford university dropouts named Aadit Palicha and Kaivalya Vohra. It currently operates in Bangalore, Chennai, Delhi, Ghaziabad, Kolkata, Hyderabad, Gurgaon, Pune, Noida, and Mumbai.
Blinkit founders:
Blinkit formerly Grofers was founded in the year 2013 by Albinder Dhindsa and Saurabh Kumar owned and managed by Blink Commerce Private Limited. Blinkit introduced express delivery in India in July 2021 by building dark stores. It claims to deliver essential goods within 15 minutes.
Did you know? Founder of Blinkit Saurabh Kumar left Grofers on June 18, 2021. He said he's leaving the company for personal ambitions.Dunzo founders:
Dunzo Digital Private Limited operates Dunzo in Tier 1 cities. It is founded by Ankur Aggarwal, Dalvir Suri, Kabeer Biswas, and Mukund Jha in the year 2015 in Bengaluru. The company's services include delivery of packages, groceries, food, medicines, pet supplies, and more. It claims to deliver within 19 mins to 29 mins.
Online delivery of groceries market was unexplored till 2021. Out of 890 billion dollars of retail market in India, 68% share is owned by food and groceries. Zepto was 18 months old when it first announced 10 mins delivery service in the second half of 2021 and got a great response. Later other companies like blinkit announced 10 mins delivery and Dunzo declared 19 mins delivery.Also readTop 20 Unicorn Startups of India9 Blooming Startups in Tea Industry20 handy tips to help you shop at IKEA
Business Models of Zepto, Dunzo and BlinkIt
Zepto Business model:
Zepto delivers groceries within 10 mins through the chain of dark stores and mini-warehouses with an instant service model. It delivers about 2500+ items. These dark stores are located in high-demand neighborhoods. They are custom designed and made by considering ease to fill orders quickly. The average distance of Zepto delivery is 1.8km. said Aadit Pilicha in response to Anand Mahindra.
Dunzo business model:
The google-backed delivery startup, Dunzo has a hyperlocal delivery business model ( business focuses on providing goods and services to local consumers from the nearest offline stores). It works on a data-driven approach with diversified revenue streams. Dunzo is also backed by investors Alteria Capital, Lightbox, Evolvence, Google, LGT Lightstone Aspada, and S Korea's Hana Financial Investment
Blinkit business model:
Blinkit formerly Grofers has been rebranded to Blinkit to abide by the motto of delivering groceries in a blink of an eye. The revenue model of Blinkit is similar to Swiggy and Zomato, commission-based revenue model. It charges commission ranging from 8% - 15% when the orders are below INR 700/-. For the orders above INR 1000/-, 12% - 15% is charged. Blinkit is backed by Soft bank and operates on a hyper-local delivery model (which focuses on delivery within a particular geographical area).
Did you know?
Blinkit is now a subsidiary of Zomato. Zomato acquired Blinkit in an all-stock deal worth $568 million.Recent Funding Highlights:
- Dunzo closed its last funding round on Jan 6, 2022, from a Venture-Series Unknown round. It has raised $700.1million to date.
- Zepto has raised $360 million. Zepto raised $200M from the Series D funding round which closed on May 2, 2022, with a lead investor as Y Combinator Continuity Fund.
- Blinkit has raised a total of $1B in funding over 19 rounds. Their latest funding was raised on March 15, 2022, from a Debt financing round.
Did you know?
According to Clootrack's analysis, Dunzo appears to be winning the race of discounts, followed by Zepto.
Coupon codes:Dunzo Coupon Codes:
Code: "NEW75″₹.75/- off on orders above ₹.299/-
Code: "NEW50" 50% off up to ₹.50/- on orders above ₹ 99/-
Code: "NEW100" ₹100off on orders above ₹.499/-
Zepto Coupon codes:
Code : "FAST100" Get ₹100 off on your first order above ₹ 499
Code: "GRAB100" Get ₹100 off on your first order above ₹349
Code : " FLAT15" Get upto ₹150 off on your order above ₹899