Online delivery service- Dunzo business model

Dunzo business model
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When most of the products or services are setting their foot in the online world. An online delivery partner was need of the hour. As people living in metropolitan cities don't have much time for shopping for grocery items or delivering a certain package to their relatives.

And to fulfill the want of delivering goods, groceries, food, medicines, or any important item at the right place, and at the right time, Dunzo launched as an online delivery partner. Today, we will derive a deep understanding of the Dunzo business model, Dunzo marketing strategy, and how it started and achieved remarkable growth within a few years.

Idea behind Dunzo

The idea to launch Dunzo, online delivery service was initiated by Kabeer Biswas who was doing a Job in Bengaluru, India. He was hit with the fact that people are in need of a delivery partner who can help them at serving or delivering goods at their doorsteps.

Kabeer decided to give a try and he tested this idea with the help of WhatsApp. He conveyed to everyone that if anyone wanted to purchase or get the things delivered within the city, can drop me a message on WhatsApp. Eventually, he was happy to know that there is a huge demand for delivery services.

Soon he joined hands with his friends and hired people as delivery boys for completing the task at a faster pace. And to expand its business reach he converted that WhatsApp service to an application-based service that is easy to use for the customers and derives a wider network.

By using the Dunzo app, users can conveniently choose the specific service option as per their requirements. And the main services offered by Dunzo are: Buying and delivering- Grocery & essentials, Fruits & Vegetables, Food outlet, and Pick & drop service. Apart from the wide services, it offers to deliver your documents or keys that you forget at your home to your office.

Apart from wide services, a user can trace the delivering goods, can specify a relevant product that he wanted to buy, and transfer crucial messages to the service provider. All these services are available 24x7.

Dunzo business model

The Dunzo business model works on an algorithm connecting customers with its delivery provider. One can experience its offerings by downloading the Dunzo app or through its website. It creates a three-way model between its service providers( delivery boys), clients, and Dunzo's platform.

Dunzo App- A person using the Dunzo app or website can book a convenient service and its serviceable cities are Banglore, Pune, Gurgaon, Hyderabad, New Delhi, Chennai, Jaipur, and Mumbai. The app connects to the nearest delivery provider and promises you of completing your task as soon as possible.

Clients- A customer who books a service needs to convey all the information about the task to be completed. After that, he can track his order at his convenience.

Service provider- When a service is booked by a client and the nearest service provider will receive a notification and have to fulfill the order that can be buying some groceries or giving a pick and drop service to a customer. In case of buying a specific good, a customer can comfortably chat with the delivery partner that reduces the charge of errors.

How Dunzo make money?

Dunzo makes money on the basis of two main parameters, one is order fulfillment and the other is on the basis of commission. Most of the revenue is generated through order fulfillment, in which the task is completed by the delivery partners and it charges a certain amount on the basis of distance traveled. For example- it charges Rs.40 for every 4km and Rs.120 for a distance of more than 8km.

Apart from order fulfillment, it raises most of the revenue on a commission model. It charges a certain commission from the grocery stores, restaurants, medical stores, and various outlets.

Example- You have placed an order for fulfilling your shopping list and Dunzo would buy from the grocery store, it is tied up with. So, it would earn a commission from that store. The commission would range between 10 to 12% of the total amount of the grocery bill.

Dunzo marketing strategy

When it comes to marketing the Dunzo marketing strategy is quite different. It has limited its expense when it comes to marketing as it does not involve celebrity endorsement for popularizing its services. Dunzo usually opts for meme marketing and viral marketing for promoting its brand.

It simply tries to make brand awareness by associating its service with popular incidents, movements, or trends. If talking about the nationwide corona outbreak it conveys a message to wash our hands frequently in a very catchy way: "Yeh toh dhona hi tha"|Dunzo.

Take away

Dunzo launched as an online delivery service with the motive of making life easier. And it is doing really well within its serviceable cities and said to expand its reach in more cities.

We got an insight into the Dunzo business model, how it started, how it earns, and the Dunzo marketing strategy. And how initiating a business that solves the people's need results in a successful business model.  

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