Tata-backed BigBasket wants to adopt a 10-minute food delivery service, which is emerging as a key differentiator among fast commerce and food delivery platforms.
BigBasket aims to offer a wide assortment of food items that can be delivered within 10 minutes, your story has learned While the company is still in the process of finalizing the service, it’s likely going to be a mix of brand house and private label formats.
“It’s going to be a combination of everything. It’s not going to be a single strategy. Because, look, we don’t have the expertise to produce every type of food. At the same time, there are areas where we have to do it ourselves,” says Vipul Parekh, co-founder of BigBasket. your story.
BigBasket, acquired by Tata Digital in May 2021, aims to tap synergies and FnB chains operating under Tata brands like Starbucks and Qmin to add these players to its platform.
Tata Neu, Tata Digital’s ecommerce super app, already offers food delivery services through ONDC-enabled MagicPin. However, the new offering will focus more on food that can be delivered within 10 minutes.
BigBasket, which rebranded its rapid commerce service as BBNow, is likely to launch the service in the next three to four months.
“The focus is on 10 minutes. So, we will deliver whatever we can in 10 to 15 minutes. All kinds of food that can be delivered in 10 to 15 minutes, that’s the only limitation,” adds Parekh.
“Another reason these platforms are jumping into 10-minute food delivery is that the food delivery market isn’t growing very fast; it’s saturated and growing in the single digits. Most of the growth is coming from grocery delivery. By increasing delivery times and creating. Small incentives, they’re food delivery. aims to drive further growth in the business, however, it is too early to determine the amount and extent of growth this strategy can achieve,” says Satish Meena. Datum Intelligence.
“One thing we’ve seen consistently is that despite the skepticism about why it’s needed in 10 minutes, Indian consumers have voted to show that they want their wallets and their feet and everything faster. It obviously doesn’t always fit into a logical frame as to why someone wants it faster. And obviously, our job is not to decide why you want something,” said Rohit Kapoor, Chief Executive Officer – Food Marketplace, Swiggy. your story After the company’s earnings call.
Swiggy has partnered with brands like Blue Tokai, Truffles and Sharif Bhai Biryani to deliver food in less than 10 minutes through Bolt, adopting a brand-home strategy. It also operates a private label called Swiggy Cafe under its food delivery tab.
Zepto Cafe, on the other hand, operates entirely on a private label model, with food and bakery items being delivered under the Zepto brand. Products are sourced from the company’s dark stores and can be linked to the user’s express commerce order. Zepto Cafe already clocks close to 30,000 orders a day and is targeting a revenue run-rate of Rs 1000 crore by 2026. It has announced plans to launch a separate app for the offer to tap into growing demand.
“For Zepto, I think if this food delivery segment gets very big, they can go beyond that 10-minute quick food delivery, where they can directly compete with on-board restaurants and full food delivery models. It’s possible and that’s why they’re using it,” explains Meena.
Blinkit, the fast commerce arm of market leader Zomato, has also launched pilots for its similar service – “Bistro by Blinkit” in select pincodes of NCR. At first glance, it appears to operate under a separate app and has no quick service restaurants and brands listed.
The ten-minute delivery service has also seen interest from new players such as Excel-backed Swiss and Zing, which are offering it in select areas in Bengaluru and NCR, respectively. Magicpin, the third largest player in the food delivery space, has also launched magicNOW, its 15-minute service for quick bites in select pincode cities like Delhi, Bengaluru, Hyderabad, Mumbai and Pune.
While there have been various iterations with standalone apps or in-app tabs, fast commerce players are focusing on 10-minute food delivery, adding more categories to increase average order values and bump up order frequency.