Grocery eCommerce heats up in Mumbai with big daddy BigBasket launching
Groceries, FMCG (Fast Moving Consumer Goods) are moving online in this second wave of internet. During first wave of internet era (1995-2001), there was a WebVan, which closed down within 2 years, not without burning $ 1-2B of investors’ money. Post 2002, eGrocery made recovery in other parts of world and there were successful model like Tesco in UK. 2012 saw a bunch of eGroceries coming to serve us in different parts of India. While ShopVeg closed down 2-3 months back, it has not deterred existing players like LocalBanya, BigBazar and FarmFreshFrenzy to continue to expand coverage area and SKUs. Aaramshop also has presence in South Mumbai. If readers of this blog know about any more such services, please leave a comment or send tip to prasoon DOT kumar AT gmail DOT com. These companies are looking to serve us staple food right at the door, so sales will always be there, recession or not. But, wafer-thin margin on these goods and last mile connectivity problems in India’s urban jungle called Mumbai might end their party.
BigBasket boasts of exemplary 2nd time entrepreneur husband-wife duo K.Ganesh and Meena Ganesh at the helm of affairs. This January they announced a big ticket investment $10M [Medianama news] as well from Ascent Capital. Their model of directly procuring fresh vegetables and grains from farmers and put it to our doorstep symbolized a great step forward. So, I was delighted, when I heard their radio ads announcing their advent. They also have special launch offer for 1st 1000 customers – 10% off for first year. I went on to witness them do deliveries in Chandivali. They have 7000 SKUs(Source – signup email)
right now and serve entire Mumbai.
Delivery man carries a Micromax mobile running Android OS. There is a built-in enterprise program, in which I was able to view my order. Then, I entered PIN number assigned to my account over there to confirm receiving the order. It is really an excellent example of smartphone usage in enterprise space, as I had tried to look at in an earlier post.
Here’s the comparison table of existing players. Let’s see how the new entrant stands.
|eGrocery||Inventory||Area Coverage||SKUs||Time of delivery||Phone order also? Email
||Social Media Presence|
|LocalBanya||Own + marketplace model||Mumbai – South + Suburbs except Thane and Navi Mumbai||3000 (Will be 20000 in March 2013||Next day delivery||No. Phone only for reschedule 810-88-44400||*** (Average)|
|aaramshop (http://www.aaramshop.com/)||Marketplace model 774 shops in Mumbai (Dec 2012) (Zero inventory)||South Mumbai||10000||Same day||No||**** (Good)|
|BigBazaar http://www.bigbazaar.com/||Inventory of 11 shops (as of Dec 2012)+ Warehouse||Mumbai and suburbs||8000||3 days||Yes, 18002002255, (old) 0922-222-1947 email@example.com, firstname.lastname@example.org||***(Average)|
|FreshFarmFrenzy http://freshfarmfrenzy.com/||Unknown||Chandivali, Powai, Andheri (E),MIDC, JVLR, Ghatkopar(W), Vikroli(W), Kanjurmarg||Unknown||1 day||Yes, 8080 2222 44||**(Poor)|