The rise of hyperlocal delivery

If you have already some of our articles, you may have understood that we consider India’s FoodTech ecosystem as one of the most interesting when talking about delivery. So, when Google takes part in a $45m deal in a delivery startup in India, just after a $11.5m deal in April, we are twice as curious. So what makes this startup interesting? Founded in 2015 in Bangalore, Dunzo has a simple value proposition: get everything local delivered in less than 60 minutes (most of the orders are delivered in less than 25 minutes), with no minimum order and a small fee ($1 for local deliveries).

Dunzooo feature

 

Want to know more about delivery? Check our investments in delivery startups report.

Want to know more about India’s FoodTech? We also have a report (free) about that.

Why it matters?

While looking like Glovo, its European counterpart in local deliveries of almost everything, the fact that deliveries are that fast and that cheap is itself interesting enough. By enabling a mobile phone company such as Xiaomi to deliver its customers with new phones in less than 30 minutes, it is seriously competing with Amazon. Moreover, with these quick and cheap deliveries, it competes, as Glovo does in Europe, with restaurant delivery giants (Swiggy and Zomato in India). An instant delivery in an hyperlocal environment is a completely different experience compared to one or two hours delivery (not mentioning one or two days) from remote businesses. It creates both a greater reward, as the delivery is always instantaneous and a greater link to local communities.

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