The Growing Online Groceries & eCommerce Space in India

Online grocery BigBasket said on Tuesday that it had raised $150 million in fresh funds, giving it additional firepower against smaller rivals Grofers and PepperTap, both of which have shrunk operations after an expansion spree led to losses without yielding sufficient sales.Livemint.com

Yes, the new kind of eCommerce that’s online groceries app is a new business model setting up in India. These new business models have been inspired from Amazon India, Ola, Flipkart Ltd and Alibaba-backed Paytm. With this new business model in market we have seen many established players like MyOnsto, ZopNow, PepperTap, and Grofers. Among the internet business, online grocery has turned out to be a particularly unique and challenging niche.

But BigBasket is is a way different from all these other companies as they own their own inventory where as others simply allow shoppers to book products on their app from neighbourhood stores and then deliver them. And this benefited BigBasket to grow in the market.

“Inventory-led models give you better control on the quality and, over a period of time, you can get bulk deals from manufacturers. You also get slightly better margins. But you cannot create too many inventory hubs. On the other hand, in hyperlocal model, you can source effectively, but they depend on the quality and variety of products available locally,” said Ashish Basil, partner-technology, transaction advisory services at EY.

What makes these apps and services to grow and survive in highly competitive country like India? It’s offering the services in a whole new geography and new verticals, ultimately helping to expand the market.

So now online groceries service provider like, MyOnsto, ZopNow, PepperTap, and Grofers would require more capital to survive this heavily funded BigBasket.

Launching a similar service app doesn’t make you earn and grow your business. It’s being disruptive that helps thrive through highly competitive market in India. So if you’re planning for a startup to get into some serious business with a whole new geography, make sure this would be a sure shot and be an Uber in your business.

  • By admin
  • March 29, 2016
  • 17

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