To bring down losses, Grofers has changed delivery model: CEO Albinder Dhindsa

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New Delhi | December 16, 2016 6:26 AM

Online grocer and delivery player Grofers has changed its delivery model in its effort to bring down the losses,

Currently, Grofers clocks 13,000-14,000 orders a day at an average ticket size of R1,000. Currently, Grofers clocks 13,000-14,000 orders a day at an average ticket size of R1,000.

Online grocer and delivery player Grofers has changed its delivery model in its effort to bring down the losses, according to the firm’s CEO Albinder Dhindsa. The company is now using four-wheelers instead of two wheelers for delivery of orders, which has helped in increasing the delivery capacity by 10%.

For example, in Gurgaon alone, Grofers currently has 20 delivery boys driving a four-wheeler each for delivery. Compared to this, in July 74 delivery boys serviced 800-1,000 orders a day.

“As a result we have brought down our losses by 30%,” Dhindsa said. The business which was clocking losses of R7.2 crore per day till July this year, is currently, reporting losses of R5.1 crore per month.

Currently, Grofers clocks 13,000-14,000 orders a day at an average ticket size of R1,000. It generates 85% of its orders from the top 11 cities.

“Our margins too have increased to 18%. Also the average order value which till July was R750 has gone up to R1,000 now,” he said.

Further, the online grocery firm has shut down same day delivery for most of its orders. Instead of same day delivery, it now deliver orders the following day. At the same time, the e-grocer is running an Express delivery service in cities like Bombay, Delhi and Bangalore.

According to Dhindsa, the e-grocer will now focus on building its delivery capacity for the various localities it serves.

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