BigBasket acquires RainCan and MorningCart to enter the microdelivery space
By MYBRANDBOOK
BigBasket has announced the acquisition of RainCan and MorningCart. The e-grocer has integrated RainCan with a separate app, bbdaily in Pune and will soon fold up Morning Cart under the new app in Bengaluru.
According to a report, Bigbasket would throw a lot of cashback and subsidy for subscribing bbdaily. As a result, acquiring new customer will be an expensive affair for competition. With the expansion of BigBasket in microdelivery, other e-grocers including DailyNinja will lose marketshare.
Besides Pune and Bengaluru, BigBasket is also launching morning delivery service in Gurugram. The millennium city houses MilkBasket which hails as a leader in the segmeent.
Bigbasket has been in the grocery business for the longest time in India and processes largest volume in the online segment. It also understands the space and has lakhs of loyal customer base with a deep pocket. Hence, driving growth for bbdaily won’t be a challenge.
Microdelivery is different from pure-play grocery biz in several aspects. Average basket size in grocery buying varies from Rs 1,000-1,400 while it hovers between Rs 100 to 300 in microdelivery segment.
BigBasket has never dealt with such low ticket transaction. Hence, it’s an altogether new business vertical.
So far, microdelivery has largely been a prepaid phenomenon where customers load money in the wallet and then order. Such model works in cities like Bengaluru and Gurugram but not in Mumbai, Delhi, and Pune.
Despite these challenges, BigBasket would certainly give tough competition to incumbents – DailyNinja, Milkbasket and Doodhwala and several others. Besides BigBasket, Swiggy is also planning a grand launch of microdelivery vertical soon.
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