Online classified platform Quikr will soon be rolling out on-demand grocery and food delivery service. Quikr plans to make this foray by partnering with neighbourhood stores and restaurants from where customers can order products ranging from grocery to food items.
In food delivery, Quikr will compete with on-demand platforms such as Zomato, Swiggy, and UberEats. While, in grocery delivery, it will compete with players such as Grofers, Bigbasket, ZopNow and Amazon Now, among others.
Unlike rival online grocery platforms like Bigbasket, Grofers and others, which initially did not charge an extra delivery fee, Quikr plans to levy a nominal fee on each doorstep delivery order, from the very beginning. It is to be noted that Bigbasket now charges a fee of $0.5 for express delivery services (i.e. delivery within 90 minutes).
Online Grocery: An Untapped opportunity But A Tough Market To Crack
The Indian online grocery market is said to be a tough segment owing to low-profit margins due to the monopoly of local offline vendors. Peppertap (B2C business), Local Banya, TownRush, Paytm Zip, Ola Store, Flipkart’s Nearby – all got added to the list of failed attempts that sooner or later were unable to drive the matrix required by the segment. Despite offering free doorstep delivery service, startups such as PepperTap and LocalBanya which initially managed to gain good traction could not sustain for long and compete with other firms dominating the online grocery delivery space.
However, as the startup winter of 2016 got over, the segment has again started gaining traction amidst investors as well as the players. Recently, BigBasket raised a total of $5.8 Mn (INR 32.65 Cr) from Helion Ventures Partners and others in three tranches and Grofers also secured $14.7 Mn (INR 96 Cr) from its Singapore-based parent company Grofers International for boosting its business.
As shared by a ZopNow spokesperson with Inc42, almost all grocery retail players in India have stores primarily in urban areas with a majority being in top 10 cities. Online grocery players on the other hand mostly cater to big four to five cities though ZopNow is present in eleven cities. But the real insight goes beyond this information.