Big Basket has changed the way people get their daily essentials like groceries, frozen food, and more. Big Basket acts as a supermarket for customers; however, the business model of a delivery giant runs deeper than simply listing products from other sellers.
The
grocery delivery giant has changed its operational strategy to support the
marketplace model and enter into the private label territory, essential
deliveries based on subscriptions. Want to know how Big Basket is changing its
operational strategy? It's important to step back and have a quick look over
its success story.
Explore
Big Basket's revenue and business model to know how it works. On-demand grocery
service is fast gaining popularity in the Indian market, and the online grocery
delivery market is predicted to increase and reach $10.5 billion by 2023. And one of the leading names that hold a considerable share in
the market is Big Basket. Let explore the Big Basket business model to know how
it works, generates money, and more right away.
What is a Big Basket?
Supermarket
Grocery Supplies PVT, LTD, trading as Big Basket, is an online grocery delivery
service. The Indian company primarily delivers goods and daily essentials
founded in convenience stores, food supplies, and home essentials. Founded in
December 2011, BigBasket has its headquarters in Bangalore, India.
Facts & Figures Helping You to Know About BigBasket
·
Users: 10 million registered users
·
The average number of orders on the
BigBasket platform: 100000
·
A number of products available on
BigBasket: 20000 products
·
Total number of brands available on
BigBasket: 1000
brands
·
Number of cities BigBasket operates in 25 cities
·
The average number of monthly orders
fulfilled by BigBasket: Over 1
million
·
Total amount BigBasket raise in funding: $720 million
·
The estimated value of BigBasket: $1Billion
·
BigBasket is available on Android
& iOS
Founded
by V.S Sudhakar, Abhinay Choudhari, Ramesh, Hari Menon, and Vipul Parekh in
2011, BigBasket is an on-demand grocery ordering platform. In 2019, BigBasket
raised $150 million in funding from CDC Group, Mirae, and Alibaba Group, giving the
company a valuation of above US$1 billion.
BigBasket
has acquired micro-delivery DailyNinja to consolidate its subscription delivery business. The deal
increased the value of DailyNinja to 48 crores in stock. In 2021, the Tata Group acquired the majority of stock (64.3%) in the online grocery market, increasing the market and
reaching around ₹9,500 crores (US$1.3 billion).
Big Basket Business Model - Explore How the Grocery Delivery App
Works?
Grocery
shopping was one of the most tedious tasks in the past. Various things must be considered;
some include searching for a grocery shop, checking the quality of products,
comparing the product price, and adding the stress of shopping in an open store.
Big
Basket has made every process more accessible through its grocery delivery app.
It facilitates the purchasing of products from the comforts of customers'
locations. The channelization of the online ordering platform works by buying
farm products, fruits, vegetables, and meats as well as managing these stocks
in a warehouse.
BigBasket
is an on-demand
delivery platform for customers, but it spread out into everything from
acquisition to logistics and in customer services through subscription-based
delivery. Big Basket has two sides of operations: buying personal care products
and farm produce while managing the stock in its warehouse in different regions.
The
primary focus of the Big Basket is to manage the supply of perishable goods,
including vegetables, fruits, and meals for which it ties up with local stores
and suppliers. Let's look at the strengths of the Big Basket business model
right away.
Strengths of the Big Basket Business Model
If you
aim to create an on-demand grocery delivery app similar to Big Basket, then there are various positive and
strong points you can consider; check the strengths of the Big Basket business
model.
User-friendly Interface
Provides
consumers with an easy user interface to select the preferred products from the
list. The company provides various options such as search, add to cart, filter,
and more. Users can select products from any of the brands to get them
delivered to their place.
Value for Customer Money
The
company values every penny of customers. Grocery is a primary requirement for
every one of us; hence it becomes crucial to selling quality products at a
reasonable price as it's the only way to reach more and more customers.
However, BigBasket has clearly understood it.
The
grocery delivery platform provides discounts and offers to customers on
different occasions. To attract customers as well as retain the old ones, they
offer more, providing the best experience.
Wonderful Customer
Service
Customers
are king! A business that deals with customers need to provide the best
services to customers. And the Big Basket business model helps the company to
offer excellent customer services to its customers. It has a feedback, rating,
and review system, helping the company improve its service much better.
The
company's techniques for product delivery work great for them, ensuring on-time
delivery also without any excuses. The team works towards improving the
customer base, helping the company to generate more revenue and sales.
Big Basket's Revenue Model - Check How Grocery Delivery App
Generate Money
The Big
Basket revenue model is designed in such a way that ensures maximum profit to
the company. The grocery delivery company takes care that the shoppers' money
is not wasted; they also make sure to get the perfect service at the right
price.
Different
revenue streams comprising the Big Basket business and revenue model include
Store Sales, Merchandise sales, Sponsored Content, Sales Commission from local
retailers, and Delivery Charges. Let's have insight into the working to know
how Big Basket makes money.
Inventory Model
This
model has helped the company to gain more profit. Big Basket buys products from
big brands in the country, including P&G, HUL, and many more. The product
sold on the platform is classified in two different categories, including:
·
Perishable products;
·
Non-perishable products.
The
perishable products required to be addressed before they became unusual.
Besides this, the non-perishable products can be delivered in some time. It decreases
around 5% of the revenue on perishables; this isn't a significant amount
compared to overall revenue. The inventory revenue model helps brands to
generate more revenue.
Multi-Vendor Marketplace Model
In this
model, any of the stock is not managed by the platform. Different sellers are
listed on the branded website, and when customers place an order on the site,
the site gets the products delivered from the suppliers to consumers via an
internal logistics network.
The
model is both a win-win for the businesspeople to get the appended branding of
the marketplace, and it helps the marketplace increase as their vendors expand.
Few of the top giants like Myntra and Amazon follow this marketplace model.
Hyper-Local Delivery
This is
the critical point of the Big Basket model; the primary worry of ordering daily
essentials online is the delivery of the products. Most people are worried
about whether their product or services will be delivered on time or not.
Whether there will be any mishaps or tampering.
However,
Big Basket ensures delivery on time; the grocery delivery giant provides
perfect delivery of groceries to the customers' place. The company has tied up
with lots of local stores across the country to ensure their customers are
provided with on-time delivery.
Big
Basket charges 30 from the customers, and it's the primary reason for a brand
to generate profit. Due to successful growth, the company introduced the
"same-day delivery" concept, making it easier for customers to get
their product delivered on the same day.
Amazing
warehousing techniques helped the company maintain good, helping Big Basket
deliver perishable products to customers' doorstep on their demand. Big Basket
has bridged the gap between customers and farmers.
Looking for Grocery Delivery App Development?
Big
Basket is a leading online grocery player that has changed the grocery
marketplace. The Big Basket business model has worked wonderfully and emerged
as a key player in the grocery business in India. With many competitors in the
market, including Amazon, Grofers, and many other hyper-local models emerging,
Big Basket has entered into a Tata group to expand its business.
If you
are thinking of portraying an app similar to Big Basket, then the Big Basket
business and revenue model is the best one to choose. It provides business
owners with more profit and helps them come up with a new business that helps
them fulfill the market's demands. Launch the grocery business online with a
feature-rich app solution, have any doubt or want to get a pricing quote, don't
hesitate to get in touch with us at [email protected].
Examine the steps you should follow to build a profit generating food delivery startup with the customizable and white-labelled Big Basket App.
For more detail contact: https://www.cubetaxi.com/on-demand-delivery-solution
