The Truth Behind 10-Minute Delivery Model

The Truth Behind 10-Minute Delivery Model
Share

The 10-minute quick delivery model is gaining a lot of traction. Many companies like Swiggy Zomato, Dunzo, and Zepto compete against each other. But there is a dark side to it as well. Let’s explore more about it.

Recently, I ordered a bottle of cold drink and some milkshakes from Zepto. It got delivered in just 12 minutes and 32 seconds. Well, that’s an achievement for the company. But the question is, did I need those products in 10 minutes? Honestly not. 

Still, the 10-minute quick delivery model is gaining a lot of traction. Many companies like Swiggy Zomato, Dunzo, and Zepto are competing against each other to deliver products within 10 minutes. 

You won’t believe it. Nowadays, even liquor is delivered in 10 minutes! That’s crazy. 

But what’s the 10-minute craze? And how do these companies manage to knock on your door in just 10 minutes after you hit the ‘place order’ button! 

Let’s find out.

What’s Happening?

Startups and well-established food delivery chains are aggressively competing against each other to excel in the 10-minute delivery space. They have come up with unique and strong marketing strategies. Dunzo’s ‘Ab fridge ka kya kaam hai?’ and Swiggy Instamart’s ‘The Better Half Cookbook’, etc. 

But the question is, how do these companies manage to deliver so quickly? 

Business Model of 10-Minute Delivery Platforms

Usually, when you run out of milk or bread, what do you do? You quickly run downstairs to your local kirana store to buy it, right? Then why would someone buy it from Swiggy Instamart or Zepto? Simply because it is more convenient. 

These companies aim to offer convenient and hassle-free delivery at your doorstep. 

But how do they manage to deliver in 10 minutes? 

Firstly, they have several mini-warehouses (dark stores) near every town and city. For example, Dunzo has mini warehouses within 5 KMs of a residential area. 

Previously, these companies had big warehouses with a lot of inventory. This would give users a lot of options to choose from. But, it resulted in slow delivery. 

So, now they have updated their strategy and have started storing less inventory, which will give users fewer options but faster delivery.

The Dark Side of 10-Minute Delivery Platforms

Riders have a time constraint to deliver groceries. Complaints are lodged against riders for flouting traffic rules, which might prove to be dangerous for local citizens. Hence, Swiggy changed its marketing communication to ‘Groceries delivered in minutes.’ Similar is the case with Blinkit. It changed its ad campaign from ‘Need it in 10 minutes’ to ‘Need it in minutes’.

What Lies Ahead?

These days these grocery delivery chains are clubbing orders. So, if two people order something from the same place, both the orders will be delivered by the same rider. This, in turn, will reduce the delivery cost but will be a bit time-consuming. 

Moreover, when we talk about swift delivery, it relies on how many orders a rider can deliver in an hour. 

These companies will manage to deliver their promise of delivering in minutes only if they manage to deliver multiple orders on time.

That’s it for today. I hope you enjoyed reading it.

Don’t forget to share this article with your friends.

Teji Mandi Multiplier Portfolio of high quality companies that blends shorter term tactical bets with long term winners Subscription Fee
CAGR
Min. Investment
Teji Mandi Multiplier Portfolio

Teji Mandi Multiplier

Concentrated portfolio of fundamentally strong small & midcap stocks that are likely to show potential growth.

2Y CAGR

Min. Investment

Subscription Fee

Teji Mandi Flagship A basket of 15-20 long-term and tactical stocks that we regularly rebalance to adjust to the market conditions. Subscription Fee
CAGR
Min. Investment
Teji mandi Flagship portfolio

Teji Mandi Flagship

A Multi-Cap portfolio of 15-20 stocks that consists of tactical bets and long-term winners that generate index-beating returns.

3Y CAGR

Min. Investment

Subscription Fee

Recommended Articles

"Register Your Interest"

Already a member ? Log In