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How Dunzo Works: Have Insight into Dunzo Business Model

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Smith Joe
How Dunzo Works: Have Insight into Dunzo Business Model

Multi-service apps or super apps have made people's lives more convenient than ever before. Such apps provide multiple services within a single module. Some popular examples of multi-service apps are Gojek, Dunzo, Grab, etc. The super app idea is undoubtedly profitable. In this article, we're going to discuss everything related to the popular multi-service app Dunzo. Here you can have insight into the Dunzo business model, how it works, make money, etc.


Modern

people yearn to enjoy hassle-free lives, and smartphones play a significant

role in achieving this goal. Mobile app usage is increasing these days globally. User engagement and retention

are expected to increase mobile app revenues to 613 billion by 2025. Due to

all-inclusive offerings, mobile apps have been chosen by millions of people,

and one such app is Dunzo. Many business owners are getting inspired by the

Dunzo business model in order to create digital solutions similar to it.



What is Dunzo?

An Indian

company, Dunzo, is an instant delivery platform. The company delivers fruits,

vegetables, food, medicines, and other essentials to customers' doorsteps. It

has separate services for picking up and delivering packages within the city.

It provides its delivery services in more than nine cities, including India's

capital city, Gurgaon, Jaipur, Pune, Chennai, Hyderabad, Mumbai, and Jaipur.



Some

Interesting Things to Know About Dunzo

Type of

business: Private

Platform

Language: English

Founded: July 2014

Headquarters: Karnataka, Indiranagar, Bengaluru, India

Area

served: 9 cities

Founder(s): Dalvir Suri, Mukund Jha, Ankur Agarwal, and Kabeer Biswas.

Chairman: Abhishek Venkateshwara

Services

Offering: grocery

delivery, taxi-hailing, medicine delivery, local couriers, laundry delivery,

package pickups, and drop.

Users: 10 lakh monthly orders

Current

status:

Operational

Parent

Organization: Dunzo

Digital Private Limited

Native

client(s): Windows, Android, and iOS


Want to

have a look at Dunzo's success, have a quick look over its story

#WahanSeYahanTak; it will surely give you a glimpse of how the founders got the

idea, how they started, etc. Check the video for more:


https://youtu.be/LEmxkwMnMXI


Funding History, Success Store, and More to Check About Dunzo!

Before

launching Dunzo, Kabeer Biswas founded a company, Hopper, which was later acquired by Hike. Later in July 2014, he launched the delivery platform. The

company was started as a small WhatsApp group, which was later transformed into

a hyperlocal app-based service. Dunzo is headquartered in Bangalore. Want to

have insight into the company's success and funding history? Have a quick look

over the image right away.


Image of

Funding History


As

mentioned in the image, Dunzo partners with PepsiCo India to deliver its snacks brands like Kurkure, Lay's, etc., to

customers on their demand amid lockdown in Bengaluru. It helps PepsiCo to keep

its 'Direct-to-Customer' initiative. 


In the

same year, 2020, Google Pay and Dunzo partner with each other, enabling the delivery company to offer medicine

delivery, grocery delivery, bike pool, and other services to customers with

ease.


In 2021,

due to changes in Google Pay terms on sales of liquor and tobacco, Dunzo

launched a parallel app, Dunzo Mo. Users can download the app as an APK file on

the website. Paan, liquor, and tobacco items are no longer sold on Dunzo's

Android app; however, it's available for iOS app users and also on the website.


Dunzo,

with the aim to expand its quick commerce, launched Dunzo Daily in 2021. The

app helps the multi-service delivery giant to deliver all household and

essential items in just 19 minutes. In January 2022, Dunzo raised US$240 million in funding in a round led by Reliance Retail along with existing

investors Lightbox, 3L Capital, Alteria Capital, and Lightrock.


Reliance

Retail funded around US$200 million for a 25.8% stake in Dunzo. Are you

inspired by the Dunzo business model and looking to launch a similar business?

Then you can invest in delivery anything app and launch your multi-service business online. The platform

consists of all modules and features that help you automate business activities

and manage them efficiently right from one platform.



Dunzo Business Model: How Hyperlocal Marketplace Giant Works?

Dunzo

follows a hyperlocal delivery business approach, making the Dunzo business

model successful and must be followed by many delivery business entrepreneurs.

The company uses a data-driven strategy to match delivery employees to the

nearest users requesting the service. An on-demand delivery platform

transformed the way customers shop, commute, and transfer goods.


A Dunzo

business model is exemplary of a two-sided network. One side of the network

benefits customers, and the other is advantageous for merchants. The hyperlocal

delivery company is offering drone-based deliveries of medicines in Telangana.

Dunzo has partnered with the Telangana government and Skye Air to begin vaccine and other medical delivery.


https://www.instagram.com/p/CUm5vFXleoj/?utm_source=ig_web_copy_link


Dunzo has

tie-ups with lots of restaurants, clothing stores, shops, and general stores.

The company is offering on-demand delivery services in more than nine cities in

India. This delivery platform has turned into a great convenience and helps

users who can't go out or don't want to go shopping, deliver products, and more.



Customer Segment

Being an

HLD (hyper-local delivery), Dunzo is leveraging a huge target segment. Dunzo is

the best option for people of all age groups, including 65 years olds who want

their medicines to be delivered and children who want to get their notes from

friends' homes. Customers can have their food, medicines, and more delivered to

their doorsteps.



Hyperlocal Marketplace

Time

factor and geography dictates the hyperlocal marketplace's success. The Dunzo

business model has a short delivery time covering diverse categories and

extensive areas. The company is building a hyperlocal marketplace for

businesses that drives hyper-local and on-demand deliveries.


https://youtu.be/AJprUrPDsKo


Dunzo has

partnered with more than 10,000 merchants and has succeeded in increasing its

revenues by 150%. Fast-moving goods are the grossing segment in this model. It

has led Dunzo to be an investor-led and shopping-focused business model leading

to an average order value. Find how Dunzo makes it easier for businesses to

list their service and avail it to customers on their demand.


Dunzo partners with LeadSquared to build a seamless merchant-first product. The company

integrates a digital marketplace toolkit for retailers who are offering

traditional services, including eCommerce logistics, demand prediction, and

inventory management. It's sold on the delivery app and works on a hyper-local

delivery mechanism. It charges around 15 to 30% commission from its partners.



Dark Stores

Dunzo is

planning to double its footprint in more than 15 cities; hence the company has increased its dark

store count to 200 from 75. The hyperlocal delivery facilitates hyper

convenience for consumers to prioritize premium services and time.



How Does Dunzo Work? Step-by-step Process to Have Insight!

The above

details might have helped you understand the Dunzo business model to some

extent. Now it's time to dive deep into how Dunzo works to understand its

workflow and more right here.




·        

Users can install a mobile app or visit the website;

·        

If users require any item to be delivered within the same city,

they can request the same;

·        

They can explore the list of items and more before placing the

request;

·        

The delivery provider of Dunzo will pick the item from one place

and deliver it to another; the company ensures to satisfy all the delivery

requirements of customers within an hour.

·        

Dunzo charges a small fee for the same.

 

Dunzo's

user-friendly app and website help the company to provide concierge service

on-demand to consumers in the hyperlocal market. The delivery functions via a

data-driven platform using which it delivers providers are connected to the

user requesting service in a nearby region. The delivery person's activity and

location can easily be tracked throughout.


Users can

chat with the delivery provider in case of any emergency. They can also share

required product images, information, etc. Once the order is delivered, users

can make payments and give feedback as well. The company uses AI in its

solution to provide its consumers with a smooth user experience.


A Dunzo

business model is designed to satisfy all the needs of customers. The delivery

platform enables its customers to order anything like food, groceries,

medicines, etc. For example, if people want to send a gift to his/her friend,

they can do it through Dunzo delivery.


Are you

looking to launch a business app similar to Dunzo? White Label Fox can help you

with the same; want to know what we have in our sack and how we cater to your

app and web development needs? Check right here of development solution.



Dunzo Revenue Model: How Hyperlocal Delivery Based Company Makes Money?

There are

lots of methods to make money through the multi-service app. Dunzo follows a

few of the effective ways to generate money. Want to know how Dunzo generates

revenue? Explore to know how hyperlocal delivery based company makes money

right here:



Delivery Fees

Just like

other delivery companies, Dunzo charges a small fee for every delivery. The

delivery charge can be anything from 10 to 60; the charges mostly depend on the

total distance needed to be covered and the value of the order to be delivered.



Commissions

Dunzo

charges a commission rate from its partners per order they receive on the

platform. The commission charge can range from 15 to 30% from the tie-up

vendors.



Surge Pricing

Dunzo

generates great revenue from surge prices. When there is great demand, the

company increases its price accordingly.


Dunzo

provides different types of services, including home services, repair, taxi

booking, etc. Besides the multiple services such as grocery delivery, food

delivery, and others, the company provides different categories of business

services. The company provides all kinds of requests, naming it as #kuchbhi

request within Dunzo.



Future Plan of Dunzo?

Dunzo

wishes to become a Unicorn startup and hit the $1 billion revenue business. The

delivery platform is looking to expand its business service in 20 urban cities.

It also initiated providing 15-minute deliveries for approximately 2,000

commonly sought-after items. The multi-service company is looking to expand its

delivery service in the Western and Northern regions of India.


Dunzo has

partnered with lots of restaurants, shops, clothing stores, and lots more

businesses to offer a smooth and quick delivery experience to its potential

customers. Dunzo facilitates users to order anything they like; delivery partners

will deliver the same to their customer's doorsteps.



Launch Your Venture Like Dunzo Today!

So, now

you might be having a glimpse of a Dunzo business model and its revenue

strategy, right? Are you inspired by the same and want to build your delivery

business online? If yes, then it's the perfect time to do the same. Want to

know an app like Dunzo's development cost or have other queries related to

multi-service app solutions? Feel free to contact us at:

[email protected].







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