Dunzo CEO Kabeer Biswas Explains The Tech Behind Faster Deliveries

Dunzo CEO Kabeer Biswas Explains The Tech Behind Faster Deliveries

SUMMARY

In the online grocery space where industry giants like Reliance JioMart, Tata group’s latest acquisition BigBasket, Amazon and Flipkart lock horns, Dunzo says its USP will be getting groceries delivered in under 18 minutes 

As analyst estimates show that the demand for quicker deliveries is going to double in the next year, the company will be upgrading its warehouse technology accordingly 

Fresh investments into robotics, alongside human assistance at dark stores, will enable Dunzo to process more than 600 orders an hour, which is more than 2.5x its current capability 

Hyperlocal delivery firm Dunzo is turning to store automation and IoT tech applications like smart baskets to offer quick deliveries through its new dark-store model called Dunzo Daily.“Currently, each fulfilment centre spans 1,800-2,000 sq. ft and processes around 200 orders an hour. But a combination of robotics and human functions can easily bring that number to more than 500-600 orders an hour,” he added.  “We also make sure that the order is packed within 60 seconds. And we realise that our average delivery time is now coming down to 15-18 odd minutes. In fact, for the last 18 months, the average delivery timing has been 20-21 minutes. So, we are now pretty much convinced that speed is the USP for Dunzo,” said Biswas. “It is almost impossible to make a profit out of the last-mile cost even for same-day delivery. Hence, it is not clear how things would work out for 15-minute delivery. After all, the overall margin in the online grocery space is 10-20%. Then again, apart from the delivery cost, there is capex spent on warehousing, leasing, maintenance and other expenses incurred to operate fulfilment centres,” the person said.  

The online grocery space is currently ruled by industry behemoths such as the Tata group (via its recent acquisition of BigBasket), Reliance JioMart and traditional ecommerce players like Amazon and Flipkart. But Dunzo says that its USP will be getting groceries delivered to customers in under 18 minutes by leveraging its smart fulfilment centres or FCs (aka dark stores). 

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