The Workings Of Dunzo The Hyperlocal Delivery Business Model - & How You Can Replicate It
by Ordering on Jan 10, 2022 2:48:37 PM
Have you ever craved junk food and needed to purchase other random items? Laundry, cleaning products, things that we require for the house daily get passed by sometimes.
Imagine there was one substantial online marketplace that enabled you to be able to sort out all of these things in your life, all rolled into one? Well, that is just what Dunzo is. You are making your life easy.
Dunzo Is Modeled For Your Convenience.
Specifically made for those who like the concept of on-demand delivery. Since its introduction, Dunzo has transformed the way we see things. You can commute, shop, and transfer your goods all rolled onto one on-demand delivery platform.
Every entrepreneur's dream. A two-sided network makes life easy. Customers and merchants are all rolled into one in a united way allowing clients the chance to shop from home and connect with merchants without the hassle.
How Dunzo Began.
It is a credit to the founders that much is for sure. The concept started in the year 2014 in Bangalore, India. The brain child of Ankur Agarwal Kaber Biswas, Mukund Jha and Dalvir Suri. To begin with, they used WhatsApp to take orders, and a lot of people were interested and adopted their concept.
When the customers grew, and the business increased, they rapidly switched to an Omnichannel model. They made a massive presence with the Android app, their website, and of course, an application on iOS.
The financial side of things came from raising $650,000 sourced from Aspada Venture and Blume Ventures alongside Mr. Rajan Anadan, the managing director of Google, India.
They got a whopping additional twelve million USD in December of 2017 from Google themselves. Later on, in October of 2019, an additional 45 million USD was injected into Lightbox Ventures and 3 L Captial.
Other sources also contributed to the funding of Dunzo, and currently, it has been funded with around $81 million! An impressive amount. Also, the contributing funders are credible and have tremendous confidence in how Dunzo works.
The Stream Of Revenue From Dunzo
The platform has increased its revenue easily. Splitting into five different sources, all of which are listed below.
Delivery Charges- the added charges range from around Rs 10 up until Rs 60; all of this depends on the value of the order and, of course, the delivery order location.
Commission Rates- There are different commissions added for Dunzo, and they charge the store that has partnered with them a fee for each order. The rate of the commission charged begins from 15% and goes up to 30%.
Services- Such as but not limited to home services, ad repairs, etc., all bring in a fee when used.
Demand and Surge Pricing- A surge pricing formula is adapted and put into place when a specific area is in demand a lot.
Miscellaneous Category- The founder of Dunzo, Biswas, refers to this as a #kuchbhi request. Whatever the task description determines the type of request. Perfect examples of such acts are:
● Take a picture of a child's completed school project.
● Fetching someone's coat from their house, which was forgotten behind
● Videoing someone's hotel construction so that the owner in charge knows that work is taking place in line with what they requested.
There is a vast target segment in hyper-local delivery businesses such as Dunzo. There are clients of all ages. At times a teenager can be seen using his friend's notebook to check the homework notes taken down in class. Or, an elderly client could be ensuring that his daily medication is collected on time.
Dunzo stands out from other delivery platforms because they are the sole owners of the delivery layer. Some other on-demand delivery platforms don't own the whole delivery layer.
Many of those that compete with Dunzo seem to get a lot of merchants and vendors on the platform; most have to ask their clients to find their way to navigate the services.
Dunzo takes 100% responsibility for the complete order. That means that from the very moment that the payment has changed hands, they are responsible for the payment, the items, AND, perhaps, more importantly, the delivery to your home. Until the order reaches your door, Dunzo is responsible.
The whole module is fast, adaptable, and, of course, quickly evolving with changes. Another great thing is that they have picked up on the fact that most customers reorder the same service repeatedly, hence the introduction of a repeated task button.
The Future Of Dunzo Looks Bright
A bold move recently was the pairing up of famous brand PepsiCo to enable users of the platform and enhance the standard of Dunzo delivery setup. It has been introduced into the city of Bengaluru with the idea to expand services in both the West and the North of India. The founders of the company predict a bright future.