Dunzo Takes The Optimisation Route to Enable Multiple Deliveries

With route optimisation, now a rider can make atleast 2 deliveries in the same area

Dunzo has seen increased demand during the lockdown

Founder Kabeer Biswas said the company broke even on each order level

Bengaluru-headquartered hyperlocal service provider Dunzo has now started optimising delivery routes to enable multiple deliveries.

Inc42 noticed on the company’s app that in short-distance deliveries, Dunzo was enabling deliveries along the same route. However, the company didn’t confirm the feature when contacted.

Founded by Dalvir Suri, Mukund Jha, Kabeer Biswas, and Ankur Aggarwal in 2015, Dunzo provides hyperlocal delivery services. It connects users with vendors which are usually grocery shops to facilitate the delivery of products. Additionally, it also fulfils door-to-door courier services and on-demand deliveries of non-essential items as well.

Dunzo has so far raised $86.7 Mn from investors like Google, Lightbox, Yatra’s cofounder Deep Kalra and Blume Ventures.

Dunzo cofounder and CEO Kabeer Biswas revealed recent growth figures while talking to Inc42 cofounder and CEO Vaibhav Vardhan in the latest edition of the ‘Ask Me Anything’ series under the #StartupsVsCovid19 platform.

Biswas said the number of weekly orders have gone up from 2.1-2.2 per user before the lockdown to 2.8 weekly orders during the lockdown. The average ticket size for orders has more than doubled from INR 220 prior lockdown to INR 480 now.

Biswas also said the company broke even on each order level. This can be seen as a massive improvement for a company which was under criticism for no real revenue in FY19. Earlier, to cut down on losses, the company claimed to have brought down per delivery losses from INR 142 to INR 30.

On the delivery partners side, Biswas said, that average delivery time has actually dropped in some cases, even when travel distance is longer due to fewer vehicles on the road and faster travel time. The velocity of order fulfilment has increased leading to 25% growth in transactions per hour by the delivery rider.

The route optimisation part can be seen as a path towards enabling further growth in order fulfilment time as lockdown continues to create additional demand for Dunzo.

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Written by Bhumika Khatri


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