From Kiranas to Quick Commerce: Instant Gratification in Grocery Delivery (Part - 1)
- May 10, 2025
- 16 min read
India’s grocery landscape has rapidly evolved from traditional kiranas to the age of instant delivery, driven by players like Zepto, Instamart, Blinkit, and Big Basket. This case study explores how each platform is carving its niche—balancing speed, assortment, cost-efficiency, and customer trust. By analyzing their go-to-market strategies, supply chain models, and user experience innovations, it sheds light on what it takes to win in the high-stakes game of quick commerce.
Part 1: Strategic Analysis of Zepto, Instamart, Blinkit, and Big Basket in Quick Commerce
Why Each Company Should Pursue Quick Commerce
Zepto
Mission Alignment: Zepto’s mission focuses on ultra-fast delivery (within 10 minutes) for essential grocery items. This mission aligns with the demand in urban areas where convenience and speed are key, particularly among younger demographics.
Strengths to Leverage: Zepto has a strategic edge due to its micro-warehousing network, allowing proximity to densely populated urban areas, thus making ultra-fast delivery feasible. This infrastructure directly supports its speed-oriented brand promise and appeals to users who prioritize immediacy.
Current Trend and Market Opportunity: Quick commerce is booming in India, where a dense population and rising disposable income make ultra-fast delivery attractive. Zepto’s model meets these needs by delivering groceries quickly, which is especially valued in cities with high traffic congestion.
Strengths and Weaknesses
Strengths: Speed-focused infrastructure, strategic micro-warehouse locations, high visibility in the quick commerce space.
Weaknesses: High operational costs due to the logistics of maintaining a 10-minute delivery promise, and potential service limitations outside dense urban areas where micro-warehouses may be harder to sustain.
Instamart (Swiggy)
Mission Alignment: Instamart’s mission supports Swiggy’s broader goal of being a convenience provider in urban areas. By adding groceries and essentials to its offerings, Instamart leverages Swiggy’s robust delivery network, meeting users’ demands beyond food.
Strengths to Leverage: Instamart benefits from Swiggy’s extensive logistics network, well-established brand loyalty in food delivery, and strong relationships with existing customers. This allows Instamart to manage high order volumes and integrate grocery orders seamlessly into its system.
Current Trend and Market Opportunity: The demand for single-app solutions for multiple needs is on the rise. With consumers increasingly relying on Swiggy for both groceries and restaurant food, Instamart’s expansion aligns with this trend, helping the platform to become a one-stop solution for urban convenience.
Strengths and Weaknesses
Strengths: Established logistics infrastructure, strong brand recognition, integrated services with Swiggy’s existing offerings.
Weaknesses: Balancing quick commerce with Swiggy’s primary food delivery service can strain logistics, especially during peak hours; also faces competitive pressure to match Zepto’s 10-minute delivery claim.
Blinkit (Zomato)
Mission Alignment: Blinkit, acquired by Zomato, is driven by a mission to integrate convenience with Zomato’s core food service. By offering grocery delivery alongside food, Blinkit supports a seamless user experience within the Zomato app, targeting customers who value one app for multiple needs.
Strengths to Leverage: Blinkit leverages Zomato’s brand recognition and customer base, allowing it to introduce grocery services to existing users without the need for heavy acquisition costs. This integration also capitalizes on Zomato’s logistics infrastructure, providing efficiencies in order fulfillment.
Current Trend and Market Opportunity: Quick commerce appeals to Blinkit’s target audience—urban, convenience-seeking customers who are likely already using Zomato for food delivery. The cross-promotion opportunities are high, especially as Zomato’s ecosystem grows.
Strengths and Weaknesses
Strengths: Established customer base with Zomato, cross-utilization of logistics resources, strong integration with food delivery services.
Weaknesses: Potential brand dilution by handling both food and grocery services, along with profitability challenges in meeting quick delivery demands.
Big Basket
Mission Alignment: Big Basket’s mission has traditionally focused on reliable and high-quality grocery delivery, with its new quick commerce offering supporting its mission to reach more time-sensitive customers. Big Basket Quick aims to add immediacy to its standard grocery service.
Strengths to Leverage: Big Basket’s experience in grocery logistics gives it an edge in understanding consumer needs and managing inventory. Its vast supplier network and knowledge of the grocery sector make it a trusted name, especially among loyal grocery shoppers.
Current Trend and Market Opportunity: As the grocery delivery market moves toward quicker fulfillment times, Big Basket’s entrance into quick commerce aligns with consumer expectations of rapid delivery options.
Strengths and Weaknesses
Strengths: Strong market presence in online grocery, trusted brand, extensive supplier and logistics networks.
Weaknesses: Quick commerce is relatively new for Big Basket, which means adjusting its model from traditional grocery to quick commerce will require infrastructure changes and could stretch resources.
Segmenting Users
Zepto
Broad Bucket: Urban millennials and Gen Z consumers.
Behavioral Segmentation (MECE): Young professionals and students who value immediate service due to busy schedules.
Prioritized Segments
High TAM, High Frequency: Urban millennials, who order frequently and value immediacy.
Spend Capability: Professionals with disposable income, often willing to pay a premium for quick convenience.
Instamart
Broad Bucket: Existing Swiggy users, typically urban households.
Behavioral Segmentation (MECE): High-frequency Swiggy users who appreciate a combined platform for food and grocery needs.
Prioritized Segments
High TAM, High Frequency: Loyal Swiggy users who value convenience.
Unserved Population: Occasional Swiggy users who might use the app more if groceries are conveniently accessible.
Blinkit
Broad Bucket: Zomato’s food delivery customer base.
Behavioral Segmentation (MECE): Urban customers who value an all-in-one app for food and grocery delivery.
Prioritized Segments
High TAM, Moderate Frequency: Existing Zomato users who value added grocery convenience.
Spend Capability: High-value customers who place frequent large orders on Zomato and would likely do the same with groceries.
Big Basket
Broad Bucket: Traditional grocery delivery customers.
Behavioral Segmentation (MECE): Customers who value quality groceries with a flexible delivery schedule.
Prioritized Segments
High TAM, Moderate Frequency: Loyal Big Basket users seeking convenience without compromising on quality.
Unserved Population: New users in metro areas who might prefer quick delivery for smaller, more frequent orders.
Pain Points and Empathy Mapping
Zepto
User Journey: App search, product selection, checkout, 10-minute delivery.
Pain Points
Limited inventory options due to speed constraints.
Occasional delivery delays in high-traffic times, leading to frustration.
Prioritization
Pain Severity: Delivery delays, as it directly impacts the 10-minute promise.
MVP Pain Points: Inventory expansion and delivery timing adjustments to optimize satisfaction.
Instamart
User Journey: Swiggy app switches to Instamart, item selection, checkout, 15-30-minute delivery.
Pain Points
Difficulty in switching between food and grocery sections, leading to suboptimal app experience.
Delivery delays during peak food ordering times.
Prioritization
Pain Severity: UI challenges, as users may drop off if switching isn’t seamless.
MVP Pain Points: Simplifying the app interface to support smoother food and grocery transitions.
Blinkit
User Journey: Zomato app switch to Blinkit, search, add items, checkout, quick delivery.
Pain Points
Limited variety and occasional delays, especially during peak hours.
Prioritization
Pain Severity: Delivery reliability is critical for convenience-seeking users.
MVP Pain Points: Inventory variety and delivery window enhancements.
Big Basket
User Journey: App search, product selection, checkout, scheduled delivery or quick commerce selection.
Pain Points
Newer quick commerce option is limited compared to scheduled deliveries, leading to a subpar user experience.
Prioritization
Pain Severity: Limited quick delivery options.
MVP Pain Points: Expanding quick commerce inventory to attract loyal grocery users needing fast service.
Solution Brainstorming
Zepto
Solution: Expand micro-warehousing to increase inventory range, utilizing data-driven predictive stocking to manage demand more effectively and reduce stockouts.
Evaluation: This approach is feasible for Zepto given its established micro-warehousing network, enhancing its 10-minute delivery promise by reducing delivery time variability and improving inventory availability.
Instamart (Swiggy)
Solution: Implement a streamlined interface for easy switching between food delivery and grocery orders. Additionally, consider “priority lanes” during peak hours to manage high volumes without affecting grocery delivery timelines.
Evaluation: This solution aligns with Swiggy’s commitment to convenience and would reduce drop-offs by simplifying navigation for users handling both food and grocery needs, ensuring user satisfaction and retention.
Blinkit (Zomato)
Solution: Increase product variety in the quick commerce offering by adding popular SKUs and optimizing logistics for peak hours. Introducing predictive demand tools could prevent delays by anticipating rush orders.
Evaluation: This approach leverages Zomato’s existing logistics resources and brand ecosystem, enhancing Blinkit’s ability to deliver on its convenience promise. Improving inventory diversity aligns with Blinkit’s user expectations of varied options and quick delivery.
Big Basket
Solution: Strengthen the quick commerce product range by adding popular items and implementing “fast-lane” delivery for quick commerce orders. Use customer data to optimize SKUs based on high-demand products.
Evaluation: This aligns with Big Basket’s reputation for product variety while enabling quicker delivery options. Enhancing inventory and logistics for quick commerce would make Big Basket a more competitive option for instant grocery needs.
User Segmentation Matrix
Zepto
Broad Segment: Urban Millennials and Gen Z
Behavioral Segment: Time-sensitive urban dwellers
Prioritized Segments: High TAM, high-frequency users who prioritize speed and convenience
Scoring Criteria: TAM, Frequency of Use
Selected Segments: Urban millennials in high-density areas who value ultra-fast delivery and can pay for premium convenience
Instamart
Broad Segment: Swiggy’s existing user base
Behavioral Segment: Multi-purpose convenience seekers
Prioritized Segments: High TAM, moderate-frequency users who prefer combining food and grocery needs within a single app
Scoring Criteria: Spend Capability, Unserved Population
Selected Segments: Swiggy loyalists seeking one-stop solutions for both food and groceries, especially those who are willing to pay for integrated convenience
Blinkit
Broad Segment: Zomato food delivery users
Behavioral Segment: Convenience-driven customers
Prioritized Segments: Moderate TAM, moderate-frequency users who value grocery delivery added to their primary food delivery app
Scoring Criteria: Spend Capability, Frequency of Use
Selected Segments: Zomato loyalists seeking grocery options within the app, motivated by cross-platform convenience and low friction for added services
Big Basket
Broad Segment: Grocery delivery users (urban)
Behavioral Segment: Quality-conscious grocery buyers
Prioritized Segments: High TAM, moderate-frequency users who value variety and quality of grocery products, with flexible timing
Scoring Criteria: Unserved Population, Spend Capability
Selected Segments: Traditional Big Basket users seeking faster delivery for smaller orders; these are regular grocery buyers who value convenience without compromising on product quality.
Pain Points and Prioritization Matrix
Zepto
User Journey Stage: Delivery
Key Pain Points: Occasional stock limitations on high-demand items, delivery delays in peak times
Severity Rating: High
Description: Stock constraints and delivery delays can impact user trust and loyalty, particularly in dense areas.
Solution Priority: High – Expand micro-warehousing, predictive inventory replenishment.
User Journey Stage: App Navigation
Key Pain Points: Limited product variety compared to larger grocery platforms
Severity Rating: Moderate
Description: Narrow product range may not meet all user needs, potentially impacting repeated app usage.
Solution Priority: Moderate – Add popular SKU based on demand patterns.
Instamart
User Journey Stage: App Navigation
Key Pain Points: Switching between food and grocery sections is not seamless
Severity Rating: High
Description: Friction in the user journey for multi-product users, leading to higher drop-off rates
Solution Priority: High – Streamline interface to support multi-product navigation.
User Journey Stage: Delivery (Peak Times)
Key Pain Points: Peak times can lead to delayed deliveries due to shared resources with food delivery
Severity Rating: High
Description: Instamart struggles to maintain consistency in quick commerce delivery during Swiggy’s peak food hours
Solution Priority: High – Implement priority lanes or delivery time management.
Blinkit
User Journey Stage: Delivery
Key Pain Points: Delays during peak times, impacting Blinkit’s promise of quick commerce
Severity Rating: High
Description: Failure to meet quick delivery times erodes user confidence in the service
Solution Priority: High – Enhance delivery resources and utilize data to forecast peak demand.
User Journey Stage: Inventory Availability
Key Pain Points: Limited variety in stock, often only basic essentials availabl
Severity Rating: Moderate
Description: Lack of variety may prevent Blinkit from becoming the primary choice for quick commerce.
Solution Priority: Moderate – Expand inventory to cover popular grocery items based on user data.
Big Basket
User Journey Stage: Quick Commerce Inventory
Key Pain Points: Limited options in the “quick commerce” segment compared to scheduled grocery delivery
Severity Rating: Moderate
Description: Users accustomed to variety may feel limited by the fewer options available for immediate delivery
Solution Priority: High – Integrate more items from regular inventory into quick commerce
User Journey Stage: Delivery Speed
Key Pain Points: Inconsistent delivery times for quick commerce, especially during peak hours
Severity Rating: Moderate
Description: Slower-than-expected delivery can impact the trust of quick-commerce-focused users.
Solution Priority: High – Optimize logistics specifically for high-demand timeframes.
Solution Prioritization Matrix
Company | Pain Point Category | Solution | Feasibility Rating | Expected Impact | Priority Ranking |
Zepto | Delivery Speed | Expand micro-warehousing and predictive stocking | High | High | 1 |
Product Variety | Add popular SKUs based on real-time demand data | Moderate | Moderate | 2 |
Company | Pain Point Category | Solution | Feasibility Rating | Expected Impact | Priority Ranking |
Instamart | App Navigation | Streamline interface for smoother navigation | High | High | 1 |
Delivery Consistency | Implement priority lanes during peak times | Moderate | High | 2 |
Company | Pain Point Category | Solution | Feasibility Rating | Expected Impact | Priority Ranking |
Blinkit | Inventory Variety | Expand stock with high-demand items | Moderate | High | 1 |
Delivery Reliability | Increase resource allocation for peak times | High | High | 2 |
Company | Pain Point Category | Solution | Feasibility Rating | Expected Impact | Priority Ranking |
Big Basket | Quick Commerce Stock Availability | Increase available SKUs for quick delivery | High | Moderate | 1 |
Delivery Efficiency | Prioritize quick commerce slots for peak hours | Moderate | Moderate | 2 |
Detailed Solution Approach Based on STAR
Zepto
Specific: Expand micro-warehousing capacity to maintain inventory and fulfill 10-minute delivery.
Trackable: Use AI-driven data analytics to monitor and predict high-demand items, replenishing in real-time.
Achievable: Feasible within existing infrastructure as Zepto already operates micro-warehouses.
Relevant: High visibility and desirability, as it directly impacts user satisfaction with rapid delivery.
Impact vs. Effort: High-impact, moderate-effort due to initial setup, but the return on improved customer experience makes it highly feasible.
Instamart
Specific: Streamline the interface to allow seamless switching between food and grocery sections.
Trackable: Track drop-off rates and app engagement metrics post-implementation.
Achievable: High feasibility due to Swiggy’s existing tech capabilities.
Relevant: Aligns with the mission to be a multi-purpose convenience app, ensuring high visibility and engagement.
Impact vs. Effort: High-impact, high feasibility due to existing tech integration and user behavior improvements.
Blinkit
Specific: Increase product variety in quick commerce inventory, especially high-demand grocery items.
Trackable: Measure the frequency of stockouts and variety-related user complaints.
Achievable: High feasibility using data on popular Zomato items for predictive inventory stocking.
Relevant: Critical for sustaining Blinkit’s convenience reputation, appealing to frequent grocery users.
Impact vs. Effort: High-impact, moderate-effort as it requires coordinated inventory expansion but results in significant user satisfaction gains.
Big Basket
Specific: Prioritize a wider selection for quick commerce to mirror scheduled delivery variety.
Trackable: Analyze quick commerce order frequency and inventory fulfillment metrics.
Achievable: Feasible given Big Basket’s extensive supplier network.
Relevant: Aligns with Big Basket’s goal of providing variety, even in quick commerce.
Impact vs. Effort: Moderate-impact, high feasibility given the ability to expand SKUs quickly, especially during peak demand periods.
Part 2: Tradeoff and Execution Analysis
Product Understanding
Zepto
Product: Zepto offers 10-minute grocery delivery for urban, time-sensitive customers. This product relies on a unique model where micro-warehouses are distributed throughout key urban locations, focusing exclusively on rapid delivery.
User: Primarily urban millennials and Gen Z who seek ultra-fast solutions for immediate needs, often with higher disposable incomes and a willingness to pay a premium for speed.
Stakeholders: Internal teams (operations, tech, marketing), micro-warehouse logistics providers, and local grocery partners. These partners play a key role in restocking and maintaining warehouse inventory, critical for fulfilling the 10-minute promise.
Business Model: Revenue is generated through item markups, with future potential in sponsored product placements or brand collaborations. Operating costs are focused on warehousing, logistics, and labor for rapid fulfillment.
User Flow
Browse: Users search or select from a pre-curated essentials menu.
Add to Cart: Items are quickly added to minimize steps.
Checkout: Users confirm the order, and delivery status is displayed instantly.
Delivery: Zepto leverages the closest microwarehouse to fulfill delivery, updating users in real-time on arrival.
Instamart (Swiggy)
Product: Instamart is Swiggy’s quick grocery and essentials delivery, offering delivery in 15-30 minutes within the existing Swiggy app. It complements Swiggy’s food delivery and targets users seeking an integrated experience.
User: Swiggy’s loyal users, particularly working professionals and families in urban areas, who value convenience in their busy routines.
Stakeholders: Swiggy’s in-house tech team, grocery suppliers, and delivery network partners. Stakeholder goals are aligned with maximizing the user base’s cross-utilization of both food and grocery services.
Business Model: Built on the existing Swiggy platform, Instamart generates revenue through markups on grocery items and commissions. Cross-promotions between food and grocery increase order value and loyalty.
User Flow
Switch from Food to Grocery: Users open the Swiggy app and can toggle to Instamart with a single tap.
Add Items: Grocery categories are segmented for ease, allowing users to quickly build an order.
Checkout and Track: Users checkout, with the app providing live updates on delivery time.
Delivery Completion: Orders are completed with real-time delivery tracking, utilizing Swiggy’s broad delivery network.
Blinkit (Zomato)
Product: Blinkit provides quick grocery delivery within minutes, now integrated within Zomato’s app ecosystem to attract existing Zomato food delivery users for groceries.
User: Primarily Zomato’s urban users who value convenience and prefer ordering groceries alongside food, looking for an all-in-one solution.
Stakeholders: Zomato’s internal tech and delivery teams, logistics, and grocery suppliers. Blinkit’s stakeholders are invested in supporting high-speed deliveries with a reliable inventory in high-demand locations.
Business Model: Revenue is driven through grocery sales and potentially cross-selling with Zomato’s food offerings. Blinkit also benefits from Zomato’s brand and app traffic.
User Flow
Access via Zomato: Users access Blinkit from Zomato, where grocery items are featured alongside food options.
Product Selection: Organized inventory allows easy selection.
Checkout and Delivery: Users checkout and receive updates on order status through Zomato’s delivery tracking.
Completion: The delivery network ensures that groceries arrive within the promised timeframe, focusing on reliability.
Big Basket:
Product: Big Basket offers a comprehensive grocery delivery service with both scheduled and new quick commerce options to cater to different user needs.
User: Households and individuals looking for both planned, bulk grocery orders as well as immediate quick commerce orders.
Stakeholders: Big Basket’s wide supplier network, logistics providers, and customer support teams ensure product variety and fast deliveries.
Business Model: Revenue through grocery sales and premium charges for express delivery options. Big Basket focuses on building a trusted brand for both scheduled and instant deliveries.
User Flow:
Browse and Select: Users browse based on product categories, with quick commerce items prominently marked.
Add to Cart and Checkout: Users add items to the cart and choose either immediate or scheduled delivery.
Tracking: The app offers tracking for real-time updates on quick commerce orders.
Delivery Completion: Orders are completed based on selected timing, fulfilling both quick and scheduled needs.
Hypothesis
Zepto
Short-Term Hypothesis: Increasing micro-warehousing locations will reduce delivery times and improve customer satisfaction.
Long-Term Hypothesis: Expanding micro-warehousing for ultra-fast delivery will build user loyalty, making Zepto a primary choice for quick grocery needs, especially in high-density cities.
Instamart
Short-Term Hypothesis: Simplifying the UI for better navigation between food and grocery options will reduce drop-off rates and increase order completion.
Long-Term Hypothesis: By becoming a one-stop solution, Swiggy can increase user lifetime value as customers view the app as their main hub for both meals and groceries.
Blinkit
Short-Term Hypothesis: Increasing SKU variety will drive larger orders and more frequent usage from Zomato’s user base.
Long-Term Hypothesis: Integrating groceries into Zomato’s platform will drive loyalty, creating a comprehensive ecosystem that covers multiple needs.
Big Basket
Short-Term Hypothesis: Adding high-demand items to quick commerce will increase order frequency, especially for those needing items urgently.
Long-Term Hypothesis: Providing both scheduled and express delivery options will make Big Basket a versatile choice for customers, building brand equity in the grocery segment.
Key Metrics and North Star Metric
North Star Metric
Zepto: Order Delivery Time – directly tied to user satisfaction and fulfillment of the 10-minute promise.
Instamart: Retention Rate – measures customer loyalty across Swiggy’s food and grocery services.
Blinkit: Order Frequency – reflects user dependency on Blinkit within the Zomato app for groceries.
Big Basket: Average Order Value in Quick Commerce – indicates quick commerce’s contribution to Big Basket’s overall growth.
Supporting Metrics
Zepto: Cart Abandonment Rate, Delivery Success Rate, Customer Satisfaction.
Instamart: Drop-off Rate, Conversion Rate for Grocery, Repeat Orders.
Blinkit: Inventory Stock Rate, Repeat Purchase Rate, Delivery Success Rate
Big Basket: Order Count in Quick Commerce, SKU Availability, Timeliness Satisfaction.
A/B Testing
Zepto
Control Group: Current delivery processes without expanded warehousing.
Test Group: Expanded micro-warehousing model with predictive stocking.
Bonus Test: Test promotional pricing on high-demand items to increase frequency.
Duration: At least 4 weeks, focusing on retention changes.
Instamart
Control Group: Current app UI.
Test Group: Streamlined interface to facilitate food-to-grocery transitions.
Bonus Test: Limited-time offers to encourage grocery add-ons.
Duration: High-traffic times over 4 weeks, analyzing drop-off impact.
Blinkit
Control Group: Current SKU variety and delivery times.
Test Group: Expanded inventory and optimized delivery route testing
Bonus Test: Promotions on add-ons for cross-purchases with food.
Duration: 30 days during peak use hours to ensure reliable data.
Big Basket
Control Group: Existing SKU range in quick commerce.
Test Group: Wider SKU selection to test quick commerce appeal.
Bonus Test: Include fresh produce to see if perishable items increase order value.
Duration: Focused testing on weekends and peak hours to maximize sample relevance.
Ship or No Ship Decision
Zepto
Ship if testing shows that expanded micro-warehousing significantly reduces delivery time and boosts retention. Monitor for novelty effects to ensure users value the change beyond initial enthusiasm.
Instamart
Ship if the UI redesign reduces drop-offs and encourages grocery orders. Test whether integrating groceries seamlessly affects food order completion rates.
Blinkit
Ship if increased inventory variety boosts cart size without impacting delivery speed. Consider the trade-off between expanded selection and delivery time.
Big Basket
Ship only if quick commerce SKU expansion increases order frequency and satisfaction. Evaluate if balancing quick commerce and regular inventory proves sustainable for long-term use.
Execution Tradeoff Analysis
Product and Value for Each Company
Zepto: Focuses on extreme delivery speed (10 minutes) as the core of its product value. The tradeoff here lies in the high operational cost for maintaining a dense network of micro-warehouses versus the value of fulfilling user expectations of ultra-fast delivery
Instamart: Balances Swiggy’s established brand as a food delivery leader with Instamart’s grocery options. The value comes from convenience, but this must be balanced with logistics, especially during peak times when Swiggy’s resources are stretched across food and grocery.
Blinkit: Positioned as part of Zomato, Blinkit’s value lies in being a one-stop solution. The tradeoff here is between expanding grocery items, which drives usage, and delivery speed, as more inventory demands can stretch logistics.
Big Basket: Offers comprehensive grocery options, with scheduled and express delivery. The value is high in terms of product variety, but expanding quick commerce means they must prioritize high-turnover items to ensure efficiency without sacrificing their established brand in scheduled deliveries.
Key Metric for Decision-Making
Zepto: Average Delivery Time directly reflects the company’s value proposition. Any deviation in meeting the 10-minute promise can harm brand reputation and user satisfaction.
Instamart: Customer Retention Rate within Swiggy, as the primary goal is to get Swiggy users to use the app for both food and grocery. This can help evaluate if the integration drives loyalty.
Blinkit: Order Frequency shows how much Zomato’s users rely on Blinkit for groceries. High frequency confirms that users find Blinkit’s offerings convenient within the Zomato app.
Big Basket: SKU Turnover Rate in Quick Commerce highlights the success of added SKUs in driving repeat usage and justifying the expansion into faster delivery while keeping logistics sustainable.
Hypothesis for Decision-Making
Zepto: Reducing delivery times by expanding micro-warehouses will increase user satisfaction and repeat purchases, as customers prioritize speed.
Instamart: Improving the app’s navigation between food and grocery will reduce drop-off rates and encourage more users to shop groceries alongside their meals.
Blinkit: Adding popular items to Blinkit’s inventory will make it a more attractive grocery option within Zomato, increasing order frequency.
Big Basket: Expanding quick commerce offerings will make Big Basket a viable choice for both scheduled and instant grocery needs, leading to higher order value and retention.
A/B Testing for Feature Effectiveness
Zepto:
Control Group: Existing model without expanded micro-warehouses.
Test Group: New warehouses closer to high-demand areas.
Expected Outcome: Reduction in average delivery time should increase retention.
Instamart:
Control Group: Existing UI.
Test Group: New UI with easy toggle between food and grocery.
Expected Outcome: Lower drop-off rates and improved conversion for grocery orders.
Blinkit:
Control Group: Existing SKU variety.
Test Group: Expanded inventory of popular grocery items.
Expected Outcome: Increased order frequency and higher cart sizes.
Big Basket:
Control Group: Existing SKU range in quick commerce
Test Group: Wider selection focusing on high-demand items.
Expected Outcome: More frequent orders for quick commerce, proving viability.
Data-Driven Decisions
Zepto: If data shows a significant improvement in delivery times and retention from micro-warehousing, move forward with expansion. Monitor for the novelty effect to ensure initial excitement sustains long-term.
Instamart: Evaluate if UI changes lower drop-off rates and drive repeat grocery purchases. If effective, assess if this affects food order volumes, adjusting as needed.
Blinkit: Track if the added inventory leads to more orders. If so, continue expanding, but evaluate if speed drops, which could harm Blinkit’s quick commerce appeal.
Big Basket: Assess if SKU expansion boosts quick commerce usage without impacting scheduled delivery operations. If successful, continue with a balanced SKU mix.
Continue reading on Part -2
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