E-grocers like Amazon's new 'Kirana Now' programme and leading e-grocer Localbanya are all set to speed up the delivery process.
E-grocers like Amazon's new 'Kirana Now' programme and leading e-grocer Localbanya are all set to speed up the delivery process. Wherein,they promises to deliver orders from small neighbourhood stores in two to four hours, was launched as India's budding online grocery retailers increase focus on timely delivery instead of building warehouses.
Besides,the service offers convenience to customers and increases business for local stores. It is also cheaper for entrepreneurs to set up and can be scaled up quickly.
Commenting on the matter,Karan Mehrotra, co-founder and CEO of LocalBanya said:
'Atpresent,we are opertaing in Pune, Mumbai and Hyderabad, and we plan to launch delivery services in 12 cities this year.Over the last 15 years, modern trade and other unorganised players have pumped in 90% of their investment into first-mile supply chain and inventory-based warehouses, whereas nobody had really been able to crack the last-mile distribution and delivery to the customer. Instead of competing, we'd rather partner with them and focus on innovating in the areas that need attention in the industry."
As per a company statement,Amazon said last week it will start deliveries from kirana stores in select areas of Bengaluru for customers who submit orders on their mobile phones. ZopNow has shifted its focus from owning warehouses to delivering for HyperCity stores.
Expressing his views, Mukesh Singh, co-founder of ZopNow said:"From a company perspective, this is much more capitalefficient.We spent over a million dollars to set up each warehouse and now it takes $15,000 to $20,000 to start delivery operations in a city.
As per a report, the transitioning to a delivery-based model, ZopNow has been growing 25-30% month-on-month in overall volume with a 75% customer retention rate. has been growing 25-30%.
The customer benefits as well, according to Abheek Anand, principal at Sequoia Capital, which provided seed funding to on-demand delivery startup Grofers. "The company is able to offer terrific customer experience with 90-minute delivery and generate new business for local stores, all while scaling quickly across the country," Anand said, noting that Grofers had already grown to Delhi NCR, Mumbai and Bengaluru within three months. "Most inventory-based models take years to do that." Grofers raised $10 million (Rs 63 crore) from Tiger Global last month.
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