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Big Basket Revenue Model – How Online Grocery Delivery Startup Works to Make Money

Big Basket has changed the way people get their daily essentials like groceries, frozen food, and more. Big Basket acts as a supermarket for customers; however, the business model of a delivery giant runs deeper than simply listing products from other sellers.

The grocery delivery giant has changed its operational strategy to support the marketplace model and enter the private label territory of essential deliveries based on subscriptions. Want to know how Big Basket is changing its operational strategy? It’s important to step back and take a quick look at its success story.

Explore Big Basket’s revenue and business model to know how it works. On-demand grocery service is fast gaining popularity in the Indian market, and the online grocery delivery market is predicted to increase and reach $10.5 billion by 2023. And one of the leading names that hold a considerable share of the market is Big Basket. Let’s explore the Big Basket business model to know how it works, generates money, and more right away.

What is a Big Basket?

Supermarket Grocery Supplies PVT, LTD operates Big Basket, an online grocery delivery service. The Indian company primarily delivers goods and daily necessities originating from convenience stores, food supplies, and home essentials. Founded in December 2011, Big Basket has its headquarters in Bangalore, India.

Big Basket Statistics to Assist You in Understanding

  • Users: 10 million registered users
  • The average number of orders on the Big Basket platform is 100,000.
  • Several products available on Big Basket: 20.000 products.
  • Total number of brands available on Big Basket: 1000 brands.
  • Number of cities Big Basket operates in 25 cities.
  • The average number of monthly orders fulfilled by Big Basket is over 1 million.
  • BigBasket has raised $720 million in total funding.
  • The estimated value of BigBasket is $1 billion.
  • BigBasket is available on Android and iOS.

Founded by V.S. Sudhakar, Abhinay Choudhari, Ramesh, Hari Menon, and Vipul Parekh in 2011, BigBasket is an on-demand grocery ordering platform. In 2019, BigBasket raised $150 million in funding from CDC Group, Mirae, and Alibaba Group, giving the company a valuation of above US$1 billion.

BigBasket has acquired micro-delivery company DailyNinja to consolidate its subscription delivery business. The transaction increased the value of DailyNinja’s stock to Rs. 48 crores. In 2014, Tata Group acquired the majority of stock (64.3%) in the online grocery market, increasing the market and reaching around 9,500 crores (US$1.3 billion).

Big Basket Business Model: What Should You Know About the Grocery Delivery App?

Grocery shopping was one of the most tedious tasks in the past. Various things must be considered; some include searching for a grocery store, checking the quality of products, comparing product prices, and adding the stress of shopping in an open store.

Big Basket has made every process more accessible through its grocery delivery app. It facilitates the purchase of products from the comfort of customers’ locations. The channelization of the online ordering platform works by buying farm products, such as fruits, vegetables, and meats, as well as managing these stocks in a warehouse.

Big Basket is an on-demand delivery platform for customers, but it has spread out into everything from acquisition to logistics and customer service through subscription-based delivery. Big Basket has two sides to its operations: buying personal care products and farm produce while managing the stock in its warehouse in different regions.

The primary focus of Big Basket is to manage the supply of perishable goods, including vegetables, fruits, and meals, for which it ties up with local stores and suppliers. Let’s look at the strengths of the Big Basket business model right away.

Strengths of the Big Basket Business Model

If you aim to create an on-demand grocery delivery app similar to Big Basket, then there are various positive and strong points you can consider; check the strengths of the Big Basket business model.

User-friendly Interface

Provides consumers with an easy user interface to select their preferred products from the list. The company provides various options, such as search, add to cart, filter, and more. Users can select products from any of the brands to get them delivered to their place.

Value for Customer Money

The company values every customer. Groceries are a primary requirement for every one of us; hence, it becomes crucial to selling quality products at a reasonable price as it’s the only way to reach more and more customers. The grocery delivery platform provides discounts and offers to customers on different occasions. To attract new customers as well as retain the old ones, they offer more, providing the best experience.

Wonderful Customer Service

Customers are king! A business that deals with customers need to provide the best services to those customers. And the Big Basket business model helps the company offer excellent customer service to its customers. It has a feedback, rating, and review system, and the company improves its service much better.

The company’s techniques for product delivery work great for them, ensuring on-time delivery without any excuses. The team works towards improving the customer base, helping the company generate more revenue and sales.

Big Basket’s Revenue Model: Check How Grocery Delivery Apps Generate Money

The Big Basket revenue model is designed in such a way that it ensures maximum profit for the company. The grocery delivery company takes care that the shoppers’ money is not wasted; they also make sure to get the perfect service at the right price.

Different revenue streams comprising the Big Basket business and revenue model include store sales, merchandise sales, sponsored content, sales commissions from local retailers, and delivery charges. Let’s take a look behind the scenes to see how Big Basket makes money.

Inventory Model

This model has helped the company gain more profit. Big Basket buys products from big brands in the country, including P&G, HUL, and many more. The products sold on the platform are classified into two different categories:

  • Perishable products.
  • Non-perishable products.

The perishable products need to be addressed before they become unusual. Aside from that, non-perishable products can be delivered in a reasonable amount of time. It decreases around 5% of the revenue on perishables; this isn’t a significant amount compared to overall revenue. The inventory revenue model helps brands generate more revenue.

Multi-Vendor Marketplace Model

In this model, any of the stock is not managed by the platform. Different sellers are listed on the branded website, and when customers place an order on the site, the site gets the products delivered from the suppliers to consumers via an internal logistics network.

The model is a win-win for the businesspeople because they get the appended branding of the marketplace, and it helps the marketplace increase as their vendors expand. Few of the top giants, like Myntra and Amazon, follow this marketplace model.

Hyper-Local Delivery

This is the critical point of the Big Basket model; the delivery of the products is the primary worry when ordering daily essentials online. Most people are worried about whether their product or service will be delivered on time or not. Whether there will be any mishaps or tampering

However, Big Basket ensures delivery on time; the grocery delivery giant provides perfect delivery of groceries to the customer’s place. To ensure on-time delivery, the company has partnered with a large number of local stores across the country.

Big Basket charges customers $30, and this is the primary reason a brand generates profit. Due to successful growth, the company introduced the “same-day delivery” concept, making it easier for customers to get their products on the same day.

Amazing warehousing techniques helped the company maintain good inventory, helping Big Basket deliver perishable products to customers’ doorsteps on demand. Big Basket has bridged the gap between customers and farmers.

Looking for Help in Grocery Delivery App development?

Big Basket is a leading online grocery player that has changed the grocery marketplace. The Big Basket business model has worked wonderfully and emerged as a key player in the grocery business in India. With many competitors in the market, including Amazon, Grofers, and many other hyper-local models emerging, Big Basket has entered into a partnership with Tata Group to expand its business.

The Big Basket business and revenue model is the best to use if you want to create an app similar to Big Basket. It provides business owners with more profit and helps them come up with a new business that helps them fulfil the market’s demands. Launch the grocery business online with a feature-rich app solution.

 

Written By

Smith Joe, an experienced content writer, enjoys sharing his thoughts on various online delivery firms, eCommerce, on-demand business models, and so on. Furthermore, he has assisted numerous entrepreneurs by providing them with advice on Internet enterprises and their influence on the market. https://whitelabelfox.com/

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