India’s online grocery delivery space is booming and BigBasket which is among the largest players in the market is planning a massive expansion into smaller cities to ride the mobile commerce wave.
The company has announced that it will open 10 small warehouses, or dark stores, in each of the major cities it has a presence in – Bangalore, Delhi, Pune, Chennai, Hyderabad and Mumbai.
Apart from this, BigBasket also plans to have a presence in 50 smaller cities within the next 12 months, each of which will have one dark house to enable it to make hyper-local deliveries.
The company will use existing warehouses in the large cities to serve smaller neighbouring cities such as Mysore, Coimbatore, Madurai, Trichy, Vijayawada and Visakhapatnam in the near future.
With this hub and spoke model, BigBasket hopes to fend off rivals such as Grofers and PepperTap who follow a more hyperlocal approach to deliver groceries.
BigBasket Acquires Delyver
BigBasket has acquired food delivery service, Delyver. This acquisition will give it access to a fleet that can deliver products across Bangalore within 1-hour while the prospects for a merger are quite slim.
Unlike Grofers and PepperTap which partner with small local stores, BigBasket controls its own inventory making it very important for the company to handle logistics.
The new dark stores will be able to serve the express delivery demand which typically includes top-ups in a consumer’s weekly or monthly grocery shopping lists, and needs to be delivered in a matter of hours rather than days.