Dunzo to scale up quick commerce model to 20 cities

Bengaluru-based on-demand delivery platform Google backed Dunzo has said that it will roll out its under -19 minute delivery model for consumables in top 20 cities in India over the next 18 months.

Called Dunzo Daily, this will be supported by 300 micro fulfilment centres across 700 neighborhoods in the country.

This pits Dunzo against Zomato and SoftBank backed Grofers’ express delivery service which promises to deliver essentials and groceries under 10 minutes.

Recently Grofers announced scaling up its reach to cover 10 cities. 

According to a recent industry report by market research firm Redseer, the addressable market for quick commerce is projected to be $75 billion by 2025.

Dunzo Daily will offer 2000 SKUs (Stock Keeping Units) as part of the service.

In a statement, the company said that it had seen 2X quarter-on-quarter growth driven by the quick commerce or express delivery segment for the first quarter of FY 2022.

“We believe competitive pressures will go up, but being the team that created the category and led the market allows us to push innovation forward on behalf of our users.

We expect folks to mimic what we do, and we will continue to out-innovate on behalf of our consumers as we go forward,” Kabeer Biswas, CEO of Dunzo, said in the statement.

The company said that it had scaled up its Gross Merchandise Value by nearly 65% on a year-on-year basis in FY 2021. This was backed by frequent and small-ticket purchases by consumers on the platform.

The company also claimed that it had managed to cut overall cash burn by 35% for FY 2021.

The express delivery space has garnered attention from all major online grocery retailers with food technology unicorn Swiggy jumping into the fray with its Instamart offering.

Tata Digital owned BigBasket has resumed its express delivery orders too, though express deliveries make up only 7% of the current online consumables market.