Grofers offers 10-minute deliveries in selected cities

Grofers currently in 43 cities all over India, announced August that it will reduce the delivery time for the majority of its customers in 10 selected cities to under 10 minutes within the next 45 days. The company announced that the average delivery time is currently 15 minutes.

The cities that will receive the 10 minute service are Delhi, Gurugram, Mumbai, Bengaluru, Hyderabad, Kolkata, Jaipur, Ghaziabad, Noida and Lucknow.

This makes Grofers the fastest grocery delivery service. Swiggy Instamart and Dunzo Daily follow closely with 15-20 minute delivery windows, but with a smaller selection of products and limited cities. Flipkart has a 90 minute delivery window while Amazon Fresh has a two hour window.

Grofers recently received $ 100 million in funding from the grocery start-up Zomato, which estimates Grofers at over $ 1 billion and is forging into the unicorn club.

Zomato re-enters space, but doesn’t want Grofer’s help yet

Zomato first showed interest in the grocery delivery market in April 2020 when it entered that area via Zomato Market, but the company left the area in June of that year. However, in its Red Hering prospectus, filed at the time of its IPO in July 2021, Zomato said it was in the process of launching a grocery delivery market on its platform on a pilot basis, suggesting that Zomato will be reviving the market. “We’re coming back to experiment and see how we build this hyper-local part of the business,” Zomato co-founder Gaurav Gupta said at a July 8 press conference.

The grocery delivery service was launched in selected areas and for selected users in Delhi last month.

Although Zomato recently acquired a 9.3 percent stake in Grofers and could use that investment to expand its grocery offering, said Zomato co-founder and CEO Deepinder Goyal Business hours: “The investment in Grofers is separate and we have our own range of groceries [Zomato Market] This is a marketplace model obtained from local stores. This is not due to the investment made by Grofers. For the time being, we are not drawing any synergies from Grofers. Nothing is planned at the moment, there is still a long way to go. “

Swiggy Instamart is expanding into five new cities

“Our biggest investments are in our non-food businesses, which have seen tremendous consumer love and growth in a short space of time, particularly in the last 15 months of the pandemic,” said Sriharsha Majety, CEO of Swiggy, after the company launched The $ 1.25 billion investment round had completed last month.

And as promised, Swiggy expanded its Instamart grocery service to five more cities earlier this month: Delhi, Mumbai, Hyderabad, Chennai and Noida. Money control reported. Previously the service was only available in Bengaluru and Gurugram. In addition, Swiggy promises delivery times of 15-30 minutes in these cities.

Amazon uses more

Earlier this month, Economic Times reported that Amazon, currently the second largest provider in this area alongside Grofers, enables Amazon Fresh customers to pick up groceries in the More retail stores. More was acquired by Amazon and private equity firm Samara Capital in 2019, with the former acquiring 49 percent.

The service is currently active in many PIN codes in Bengaluru, where consumers can pick up online orders within 2-3 hours at the nearest More Stores. The model is similar to what the e-commerce giant is pursuing in the US, where it works with Whole Foods.

BigBasket repeats the hand with express delivery

BigBasket owned by Tata is currently the largest online grocery delivery platform in India with over 35 percent Market share, but faces increasing competition from existing players like Grofers and Amazon Fresh, as well as new entrants like Swiggy, Dunzo and JioMart. To keep up with this competition, BigBasket is working to improve its delivery speeds.

Last month in an interview with Business hours, BigBasket co-founders Hari Menon and Vipul Parekh said the company will be rolling out express delivery over the next few months, a service it previously offered but withdrew. “We went deep into the delivery of three to four hours, in most cases it is even two to three hours. Now (hourly delivery) we’re going to do next, ”Menon told ET. “The focus is on setting up dark stores, bringing inventory and warehousing closer to the customer, and making sure the cold chain works better and faster, and fresh products can be delivered easily,” he added.

ETTech reported that Dunzo is in talks with BigBasket to advance its express deliveries. “The idea is to set up 1,500 to 2,000 square meters of dark stores that can be set up in different neighborhoods. Both parties are interested in making it work, and that’s where it goes now. According to recent discussions, the final plan is to get it to 25 cities with around 400-500 such darker stores, ”a source told ET.

BigBasket is also likely to get a boost when Tata launches its proposal Super app. Tata first announced its plan to launch a super app in August 2020 and said the app will provide users with a range of services offered by the Tata group, including grocery and grocery ordering, Fashion and Lifestyle, Consumer Electronics and Durable Consumer Goods, Insurance and Finance Services, Education, Health and Billing.

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