We all know how important it is in our daily lives to order products from a local store nearby.
Crores of orders are daily delivered around India which makes it a Big Part of the Indian Revenue,
Food, drinks, grocery, stationery, Medicine, Apparel, beauty products, Electronics and the list goes on for products that are being delivered on a hyperlocal level. The digital growth and demand in India is expanding vigorously, Gaining more and more users daily.
The Demand for a hyperlocal delivery in India today is on the boom and we see apps like Amazon, Zomato, Swiggy, Big Basket, instamart, blinkit etc as the market leaders of the current hyperlocal system, we also have seen Big international players like Amazon contribute a big part of this.
These Platforms have a similar pattern to charge their sellers, They Usually charge a platform fee in percentage % of the total order amount. Ranging from 15% to 32% on each sale plus charging the customers To pay the delivery fee.
This has been notified as a problem To many retail sellers with multiple reasons.
Few say they have a lower margin in the products already so they cannot afford selling online while Some are happily increasing their product price to list to avoid the PLATFORM FEES,
hence charging the Customer more for less.
On the other hand, daily needs products have 3X times more demand than the food delivery. Brands like Blinkit by Zomato, Swiggy Instamart, Zepto, and Dunzo have been market leaders in dark store hyperlocal delivery in India.
What is a DARK STORE? It is a fulfilment centre made or a store and that is a storage center owned by brands where they Buy and store daily products in Bulk from where the delivery is picked off when someone orders from the platform.The locations of these stores are not showrooms or retail stores but are hidden instead, hence it does not operate like a retail store.
Most of the Indian Retail store owners lack the understanding of Dark stores hence apps like Blinkit & Instamart have been out of the eyes of them. And to understand this problem it has to be understood well on how it is affecting them!
The issue with this DARK STORE system is that it directly KILLS THE OLD ESTABLISHED LOCAL RETAIL STORES. People rather than directly purchasing the product from their local market order online on apps that have their own dark stores around the customer. These dark stores purchase products in bulk and end up providing Undeniable offers and discounts on Products lure users onto ordering from their platform. That a local seller could never afford to do.
Organisations are spending Crores in Marketing to achieve this goal of theirs to change the Human Purchase behaviour And the local markets have been seen struggling for orders hence facing recession.
Fact Check – Revenue from the sale of grocery and FMCG products through Instamart grew more than 4X to Rs 2,036 crore this fiscal from Rs 517 crore in FY21, according to filings with the Ministry of Corporate Affairs (MCA). With this rising numbers of such apps it makes it
a ‘Should Worry’ Factor for the retail stores. If we divide the revenues of all the dark stores together and divide it amongst the retail stores in india, it makes up a huge number and effects the revenues of a local store in a huge count.
The Current system is surely building good opportunities for delivery drivers, workers etc across the nation but with which comes the bigger loss for the retail stores and businesses.
What is the solution to this ? Keep reading.
A platform called – Zippit ( Formerly known as Letsbiz ) – A Invention coming from the Indian Heritage City – Ahmedabad, Gujarat.
A Brilliant Invention By a 24 Year old Entrepreneur, Harsh Sevani.
He has been successful in building an innovation for solving the 2 big problems :
- Commission on Hyperlocal Delivery
- Dark Store killing the local retail stores.
His idea is to provide delivery of products directly from the local shops to the customer without charging any commissions to the local stores or the customer hence making it India’s First and only Free to sell hyperlocal delivery platform. A 100% Free to use app for the public to support the local market. The idea is to earn revenues By Advertising brands to sustain the system thoroughly and provide the support. The hyperlocal delivery will be taken care of by a local delivery partner tie up and the customer will be bearing only the delivery charges. He has intelligently pulled out a smart move and converted Local stores into Micro Fulfilment centres making this idea of his scalable to the most.
App Store Link :
Here’s what Harsh has to say; “The market is in an urgent need for this Invention, I have been doing business since I was 14 and I understand the power of data. With the use of technologies like AI, ML & the power of advertising we will be able to sustain in the market as the only Hyperlocal delivery app. There is no need of Paying commissions or a fee on sale of an Indian product in India. My Invention as a Process will solve this problem at ease. Zippit is Simply a Smarter Choice”
His vision for Zippit is to “To be India’s Biggest Hyperlocal Product Delivery Search Engine”
In his previous works as a startup he has been innovative to problems faced by the youth And has brought great solutions to them like the King Tournaments App and the Maffat Photocopies app where he has been appreciated and provided grants by institutes like IIM, IIT and many other startup communities.
He is Born and brought up in Ahmedabad, Bootstrapped all his ideas and is a part of multiple businesses since the last 10 working years.
His businesses are into IT & Business Consultation, Textile wholesale, Advertise and marketing,
Owns Multiple Ecommerce stores, Muzik Bazar – A Music marketplace, A Pan Asia Beauty brand called Max3 founded with the famous Anjali Arora, A Food import and export business in Dubai, Ready Fame An SMM Tool, Franchise Becho a platform to list and sell franchises and many more.
He says this idea is not to Earn Profits but to build a better alternative utilising the knowledge we have and using it smartly in the current world.
Zippit By doing good, Holds a potential that no platform has ever seen. Its massive daily usability and micro-fillment factor can make it the next Big Thing after UPI.