Here’s Why BigBasket Is Not Too Concerned About Flipkart, Amazon’s Grocery Delivery Plans

Founded in 2011, grocery delivery startup BigBasket has changed how many Indians get their daily groceries and home essentials. Over the years, the company has made changes in its operations to not only support the marketplace model but also enter into the private label territory and daily deliveries based on subscriptions.

BigBasket’s model that has been built not only in delivery of products but also on the supply chain infrastructure that lets the company procure products directly from producers. And, cofounder and CEO Hari Menon believes this gives the company a great advantage over deep-pocketed Amazon and Flipkart, which are also entering the grocery and food retail sector.

In an interview with ET, Menon said that while the entry of Amazon and Flipkart is great news for the grocery sector, the companies are likely to take at least one year to scale up their supply chain capabilities for groceries and fresh food across the top cities.

Menon believes that the grocery delivery sector will see great growth in the next few years with Amazon and Flipkart bringing in their user bases to the sector. He added that the competition is healthy for the sector as it will replicate the growth of ecommerce in the Indian market.

“As grocery extends beyond the high socioeconomic classes towards the midsection, the market will expand,” Menon expounded.

Flipkart And Amazon Entering Grocery Race

Among the grocery delivery platforms, fresh products are the most complex products to operate with. Usually startups have to solve complexities such as procurement, licensing, storage and last-mile delivery as well as customer returns. All this means considerable expenditure in infrastructure as well as supply chain, which is a crucial link in the business operations.

While Flipkart and Amazon have realised the market opportunity here, it will be tough for these giants to replicate the same model that BigBasket has taken years to create.

Walmart-owned Flipkart is preparing for the launch of FarmerMart, its food retail business which will sell locally-produced and packaged food products.

Amazon too had realised the opportunity and has already committed an investment of $500 Mn to sell third-party and own private-labelled food products. The company already operates Amazon Now and delivers grocery under two hours.

BigBasket’s Competition With Ecommerce Giants

It seems BigBasket has also analysed the rising competition. In this regard, the company has merged its two core businesses, on-demand 90-minute deliveries and planned next-day delivery. Now the company has come up with a four-hour delivery service.

Earlier the shorter delivery time service used to offer limited products whereas the next-day delivery offered a wide range of products to the customers. Now, with the four-hour delivery service, a customer would be able to choose to from the wider section of products, earlier offered in its next-day delivery segment only.

Continue Reading This Article With Inc42+ Become An Inc42+ Member
& Unlock Unlimited Access To

Original Research & Reporting

  • Unlimited Access To All Stories
  • Exclusive Stories Delivered 2x/Week
  • How-To’s & Interviews On Starting Up
  • Intelligence On The Most Disruptive Opportunities For Startups
  • Member-Only Newsletters

Field Guides & Resources

  • Bi-Monthly Guides
  • Monthly Masterclasses
  • Monthly Playbooks
  • Quarterly & Special Research Reports
  • Member-Only Regular Series

Community Perks

  • Invites & Discount For Inc42 Events
  • Exclusive Member-Only Events
  • Discounts To Partner Events
  • Exclusive Deals On Startup Tools & Resources
  • Deeper Access To Inc42
  • Members-Only Community
Explore More About Inc42+
If you already are a member, please .
Leave a Comment
Share

Recent Posts

Exclusive: Nykaa Is Raising INR 19.6 Cr From Hero Group’s Sunil Kant Munjal

Mumbai-based beauty marketplace Nykaa is raising additional funds in its ongoing funding round from existing…

June 2, 2020

Flipkart’s License Hurdle In Food Retail Upsets Walmart’s India Ambitions

In 2018, when Walmart announced the acquisition of Indian ecommerce giant Flipkart, which eventually for…

June 2, 2020

SBI Emerges Single Largest Players In UPI After YES Bank Fiasco

State Bank of India (SBI) has become the largest in the Unified Payments Interface (UPI)…

June 2, 2020

Modi’s Calls For Private Investments In Spacetech, Atomic Energy A Big Push For Startups

Prime Minister Narendra Modi’s announcement at the Confederation of Indian Industry (CII) event on Tuesday…

June 2, 2020

Modi Counts On Entrepreneurs For India’s Growth Recovery

Addressing the annual session of the Confederation of Indian Industry (CII), through a virtual online…

June 2, 2020

Furniture Ecommerce WoodenStreet Bags $3 Mn For Global Expansion

Jaipur-based online custom furniture platform WoodenStreet has raised $3 Mn in Series A funding from…

June 2, 2020