Signs That Dunzo Is Future Kingpin of Hyperdelivery Models

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Almost a decade back when most of us were in school. I remembered the moment when our computer teacher told us that just imagine if you will get food, groceries and almost everything without going outside from your home. Today its happening around all of us.

Mobile apps have given us the kind of freedom and leverage, that was hard to imagine a decade back. And one of them is Dunzo which is bangalore-based startup founded in 2014. Today, Dunzo has currently operating in Bengalore, Delhi, Mumbai, Pune, Chennai, Hyderabad, and Jaipur. Dunzo is a hyper local on demand delivery business leverages a huge target customer segment. Dunzo is a slang abbreviation that refers to 'do, over, and finished'.

If you haven’t used Dunzo, here’s how it works – you download the application and can request for a task. Suppose you Forgot something at home and need it at the office? You can Ask for a pickup-and-drop. Need your dry-cleaning fetched for an important meeting the next morning? Just hand over the receipt and have them deliver it to wherever you are in the city. Have a document to be photocopied and delivered to your bank manager? Dunzo will do it for you.

So now that brings us to dunzo’s revenue streams. Dunzo’s retention rate is about 70-80%, repeat order statistics suggests around 80%, average time for completing the task is around 25-30 minutes. One of the interesting facts about Dunzo is that its founders initially used Whatsapp to see if there was a demand for its services. So it was already “tried and tested” for them. Dunzo’s growth rate boosted up after Covid-19. The last quarter has been one of the best performing quarters for the platform. The Startup reported the total revenue of Rs 3.5 crores and loss of Rs 169.7 crores has been reported in FY 2019. Some of the major competitors for Dunzo are Swiggy Go and Jhutpat. It also provides Dunzo cash and other digital payment options. Dunzo is making revenue on the basis of commission rate which varies from 15 to 30% from partner stores and it also charges for delivery from customers from Rs. 10 to 60 according to the distance and order value. At times, they also apply surge pricing when demand is suddenly increased in an area. It also offers home services and repairs just like Urban Clap. And another interesting category of revenue stream is #kuchbhi category, in which user is allowed to make a request like “Get me a photo of my car, number is HR26 999, to ensure that it is safe in parking lot and all windows are closed”, that’s amazing right?

Dunzo is also planning to deliver products in just 5 minutes by drones and tubing technology in future. Recently, Dunzo has partnered with Pepsico to enhance the last-mile delivery of its food brands. This initiative has been launched as a small pilot project in the city of Bengaluru. The company is scheduling to expand service in western regions of India as well. For platform’s expansion, company believes that partnership with FMCG giants is very important. The team is currently witnessing the need to expand its footprints by physical retail stores on the mobile application. Dunzo is also in the process of expanding its outreach to several tier-two cities in northern India.

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