Thanks to the convenience afforded by Bengaluru-based hyperlocal task management startup Dunzo, ‘dunzo’ has fast become a verb as more and more customers across several Indian cities ‘dunzoit’.
Soon, thanks to Dunzo’s recently launched business-to-business (B2B) service, many local businesses in India’s top cities will also be 'dunzoing' it. In doing so, the startup, which aims to be the logistical layer of the top 10 Indian cities, is building deep moats for its business, say industry experts. This, especially at a time when competition in the delivery and logistics space is heating up.
Founded in 2015 by Kabeer Biswas, Ankur Aggarwal, Dalvir Suri, and Mukund Jha, Dunzo first started operations on WhatsApp. Kabeer’s idea was simple:
what if there was someone who could complete your list of tasks for you when you needed them to?
Dunzo uses AI to manage customers tasks that include fetching something you forgot at home and need it at the office, to asking for a pickup-and-drop. Or you need your dry-cleaning fetched for an important meeting the next morning or have a document to be photocopied and delivered to your bank manager? Dunzo does it all.
'Checkout with Dunzo' opens up the possibility to tie-up with any store, empowering businesses of any size to have hassle-free logistics support. The service, similar to a payment option, lets users opt for faster delivery through a Dunzo partner, at the time of checkout. Says Kabeer,
“The idea is to give more power and control in the hands of the small businesses. We are giving them the power to be online, understand their customers and enable delivery for them."
The on-demand business is a tough one – the frequency of the business needs to be high, and there needs to be a strong liquidity of demand and supply.
Dunzo now has competition from some top unicorns, including Swiggy, with its Swiggy Stores, and Bigbasket with its ‘Daily’ services. Interestingly, the firm responded immediately to Swiggy Stores’ launch with the creative: “Welcome to our Space.”
Today, 80 percent of their tasks are completely automated and run without any human intervention. This is what has enabled them to scale. In October last year, Dunzo completed over two million transactions to date. It completes an average of 65,000 to 75,000 transactions every day across four cities.
“The idea is to reduce friction in completing a particular task. The focus is to reduce the cost per transaction, and that can be done by reducing the time taken in reaching a pickup point,” Kabeer says.
To add a layer of automation, Dunzo has built in merchant and product tie-ups, and focused on cataloguing. Now, stores and restaurants have a list of items, which makes it easy for users to choose the items they want.
At present, Dunzo charges its merchant partners a commission ranging between 10 and 12 percent of the total delivery cost. The company has tied up with over 350 merchants across the four cities it operates in.