Quick trade, a phenomenon that gained momentum during the pandemic, is currently undergoing a transformation and we can expect overnight delivery to be redundant in the next five years, according to Kabeer Biswas, co-founder and CEO of Dunzo.
E-commerce platforms need to revamp operations to ensure deliveries are made within a day and eventually within an hour, Kabeer said during a fireside chat with your history Shradha Sharma, Founder and CEO, on the second day of TechSparks 2022, India’s premier technology startup conference.
“In the next five years, overnight delivery will be dead. Consumers will want groceries and essentials faster and in a matter of hours. This is the future of fast trade in India,” said Kabeer.
Startups and larger e-commerce platforms will eventually have to ramp up operations, including logistics infrastructure, back-end technology and delivery labor to make it happen, he added.
Kabeer also stressed that faster delivery does not mean it will be more expensive. Both consumers and businesses stand to benefit cost-wise from fast delivery in the coming years, he said, noting that businesses have plenty of time to conquer the unitary economy.
“Strengthening logistics infrastructure will help improve unit economics,” Kabeer said, answering a question about the difficulties of making a profit in the fast-trade business.
For the time being, however, Dunzo will remain focused on delivering essentials within a reasonable time frame.
According to the CEO, the company does not want to become a convenience store. He added that sticking to a limited number of Stock Units (SKUs) protects Dunzo from the distractions of fast delivery and thus helps keep costs under control.
Kabeer did not seem fazed by increasing competition in the quick-trade space, saying the company remains focused on the Dunzo Daily business. “Dunzo never wanted to play in just one category. Now Daily is the most efficient form of hyperlocal delivery,” he said.
The Reliance Retail-backed company’s business grew 94% last quarter, boosted by the Dunzo Daily service.
The Dunzo leader also weighed in on the issue of using drones for delivery, stating that they can be most useful in half-mile delivery, which refers to the process of delivering goods from a warehouse or distribution center to a shipping facility. compliance.