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Online Grocers Like BigBasket And Peppertap To Speed Up Delivery

Sep 22, 2015 DiscountMantra

Sep 22, 2015 News


Online grocers have made a mark in the retail industry over the past few months. People are buying from them because they get fresh groceries, dairy products, staples, fruits and vegetables conveniently at their doorstep. In order to grab a hold in the market, these online grocers had come up with great schemes, deals and discounts initially. They have started gaining a hold but, they still don't seem to be satisfied. They want more and more customers to opt for online groceries rather than shopping from the local kirana stores.

These online grocers have come up with another scheme where they are planning to deliver the products to the customers as soon as possible. They are trying to shorten their delivery time to less than two hours now. In order to do this, they need to partner up with more stores so that they can attract more and more customers to shop with them.

BigBasket, PepperTap, Localbanya and other online grocery retailers say that time and convenience are driving more sales on online grocery stores. For other online retail stores that deal with apparel, cosmetics, electronics and more, it is the heavy discounts that help. But, for online grocery stores, if there is delay in delivery, even great discounts won't help. In fact, if consumers dont get their groceries delivered on the same day, around 50% of them will quit the idea of shopping for groceries online.

Mukesh Singh, co-founder of ZopNow, another name in the online grocery retail sector, confirmed the above point by saying, "In general ecommerce segment, the price differentiation is so high that the consumers are ready to wait as they won't get such an option outside. But in our case, if we don't deliver it when consumers need, they will go to the next kirana store even if there is Rs 20 discount on our site."

It is obvious that in order to deliver groceries and other eatables delivered to the consumers on the same day or rather in a few hours time, it requires lots of planning, investment and partnerships with local stores who can provide these products to the delivery companies.

PepperTap offers a two-hour delivery service at present and plans to reduce the time to one hour by 2016. Navneet Singh, CEO of PepperTap said, "We are working on a technology which will help us crunch the whole process, from picking up to delivering the product."

On the other hand, Localbanya works on a two-to-three hour delivery service system and does not intend to reduce the time slot any further. Karan Gonsalves, Head of Marketing at Localbanya gives reasoning to this point saying, "The issue is that most of this is done on a bike and hence, there is a limit to how much a biker can take along and how much orders we can accept for a particular time. Hence, we will not reduce the time any further for now."

Is it possible for online grocers to replace local kirana stores?

Inspite of the discounts that these online grocers give and the same-day delivery, it still is a huge challenge for them to replace the local kirana stores. This is because since years together, people have built up a strong relationship with the local kirana stores they buy their groceries from. All they have to do is call up the stores, who would deliver their products at home in 30-35 minutes. So, there would be no reason why the consumers would shift from the local stores to online stores.

To attract consumers last year, these online stores differentiated themselves by offering great discounts, and this year they want to offer super-fast delivery. We will just have to wait and watch how well and how soon they will be able to replace the local grocery stores.

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