Let’s Talk.
About Something that needs to looked at and Probably Everyone is Looking at.
No it isn’t AI gene sequencing or Space Tourism or Curing Cancer.
Its delivering Groceries, which is plain, old and boring.
On this day, right here, right now here are the startups in Bangalore delivering groceries. Some claiming Delivery in 2 days to delivery in 10 Minutes!!!
- BigBasket (TATA group) -> 1 Day
- Dunzo Daily (Partially owned by google) ->19 Minutes
- Supr Daily ( Swiggy Corp) -> 1 Day
- Flipkart Fresh (Walmart) ->90 Minutes
- Swiggy Instamart ->10 Minutes
- Freshtohome -> 5 hrs
- Deep Rooted -> Don’t Know
- Nature’s Basket (Godrej) -> No idea
- Licious -> 5 hrs
- Pickily ( Udaan group) ->5 hrs
- Grofers (Zomato Ltd) ->1 Day
- BB daily (Bigbasket) -> 1 Day
- Jiomart (Reliance) -> 2 Days
- Amazon Fresh -> 2 Hours
- Spar -> 2 Days
- Dealshare -> Don’t Know
- Bigbazaar Online (Amazon + Reliance) -> Don’t Know
- Country Delight -> Don’t Know
- Dmart Online ->Don’t Know
- OTP xpress -> 2 Hours
ok that’s Enough. There are many more, but 20 is a good number to stop at.
The More Important Question is why?
Why is everyone suddenly Interested in delivering Groceries for me?
(by me — I mean the general Public)
Below I’ll try to illustrate my thesis, as to why.
- In any business or any businessman wants to see GROWTH. Both in users and Revenue
- Groceries are such items, where a poor and rich man both can afford to buy.
- More importantly, We need to survive. So we Eat and so we survive. Its kind of a circular argument.
See this Image Below: You’ll Understand Better
To summarise:
- Groceries are cheap, everyone needs them to eat and survive.
- Groceries are bought very regularly, (Recurring Revenue)
- Capex is Relatively low, margins are quite decent.
- Will make them truckloads of money in the future.
OVERALL My prediction is:
- GroceryTech is the among the next big thing in the startup space, we’ll see a lot of them getting listed in the stock exchanges by the end of this decade.
- Invest if possible in these companies, so you can get rich too!
- If you are planning to ride this wave of grocerytech startups by Starting one,
Focus on these three things
- Price. [Keep it Cheap]
- Quality. [Best possible Quality]
- Time. [Deliver As soon as possible]
- Delivery executive’s attitude, superior app quality and quick refunds.
That’s all there is Folks!
