Dunzo enters online grocery race, launches 19-minute delivery in Bengaluru

As per a recent survey by Reedseer, quick commerce is expected to grow 10-15-fold in the next five years to become a $5 billion opportunity by 2025. (Representative Image - Source: ShutterStock)

Google-backed on-demand service Dunzo is vying for a larger share of the fast-growing online grocery space in India, with its offering Dunzo Daily in Bengaluru, through which it will deliver essentials in 19 minutes.

“With over 2,000 products and delivering in 19 minutes, Dunzo Daily is currently the fastest and most efficient way to get daily and weekly groceries delivered. We’re excited for more users to give Dunzo Daily a try and truly feel the difference in what the grocery buying experience should be in 2021,” said Kabeer Biswas, CEO & Co-founder, Dunzo

Dunzo Daily, which launched in beta mode earlier this year said it has seen demand from users growing significantly week on week. Like other players in the category, Dunzo is using a network of mini-warehouses across each neighbourhood to match demand and supply.

Dunzo Daily will compete with Swiggy's Instamart and Zomato-backed Grofers, which are doubling down in the quick commerce category.

While Grofers plans to reduce the delivery time for groceries from 15 to 10 minutes as it expands its services to 10 cities in India, food delivery platform Swiggy has expanded its grocery delivery service Instamart to five more cities in India, with a commitment to deliver essentials in 15-30 minutes.

As per a recent survey by Reedseer, quick commerce is expected to grow 10-15-fold in the next five years to become a $5 billion opportunity by 2025. BigBasket, in which Tata recently acquired a majority stake, is also lining up plans for express delivery.

The Covid-19 pandemic has turbocharged the adoption of online grocery by consumers who want superfast delivery – the faster the better. Besides, over the past couple of years, the companies have matured and have set up better supply chains and smarter hub locations.

Globally, too, huge investments are pouring into the quick commerce sector, benefitting companies such as Gorillas, GoPuff and Getir. Many are again in talks with new investors for larger funding rounds.​