Why Instant Delivery Startups are not successful in India? Top Instant Delivery Apps in 2022
The Indian startup industry is growing rapidly, in 2022 alone India had more them 100 unicorn startups (Valuation of more than $ 1 billion).
Some of them are gaining customers according to their plans and some of them are failing miserably, well that’s what happens in the startup industry, almost 90% of startups fail in the first year.
Today we are going to talk about a specific industry that is spending more and gaining less in the process, If you haven’t guessed already I’m talking about Instant Delivery Startups.
Why it’s difficult for these startups to grow in the future and not make profits in India? We are going to discuss everything in detail today.
What are Instant Delivery Startups?
Well as the name suggests, instant Delivery Startups are the startups that provide you with goods in 10-15 minutes.
You might be surprised how they do that an Amazon parcel takes 2-3 days to arrive but they are delivering in 10-15 minutes how is even that possible we will talk about this later.
So instant delivery apps promise you to deliver any goods like fruits, grocery items, or any medicine in a short period of time.
Can you even imagine your mom spending more money on such items just because she didn’t have to step out of her home?
How does it work?
Well you might be thinking about how they do everything in such a short period of time, well it’s not something new Zomato started delivering pizza in under 30 minutes so, this is not something new happening.
You know the timing of delivering an item is directly proportional to the distance between the storage facility and the delivery address. That’s why it takes an Amazon parcel 2-3 days to arrive.
These instant delivery startups have many storage facilities for items that have a long time of usage like grocery items you can store for months.
Having many storage facilities that reduce the distance between consumers and sellers that’s how they deliver in such a short span of time, they can have many storage facilities in the same city to minimize distance.
You can also compare their business model with cloud kitchens.
Why It won’t work in India
Well, there are two major reasons they might not work in the Indian market.
The first one is pretty obvious that the targeted audience is a very small proportion of people, just tell me honestly how many of you are going to order rice and pulses online, just in very rare situations right?
The second reason do you remember most of these startups came into the market in 2021 when covid was still there, so most of us were all in our homes and not allowed to go outside, or rather we hesitated to go outside because of Coronavirus but the situation is different now.
This business idea is compiled from developed countries like the US and Canada where supermarkets are far from home and most people shop only on weekends so if they need something on other days they just simply use these services.
And the last reason it’s not easy to make Indian consumers pay for the service they use, they want everything for free.
now some of you are going to talk about brand loyalty, I have already explained why brand loyalty is not going to help these startups here.
Click here to know in detail how complex their revenue is.
Brand Loyalty is a Joke. If you are naive enough to think about brand loyalty even in 2022, you might be dead wrong because there is no such thing as brand loyalty.
Let’s take an example, you are hungry and want to order food online when you pick up your phone which app are you going to order from Zomato, Swiggy or Uber Eats?
The answer is simple which is providing better deals and value for money.
The same goes for e-commerce platforms.
People buy iPhones not because they are loyal to that brand but because they have to show off to people that they are using an expensive smartphone childish thoughts.
Best Instant Delivery Apps
11 Apps to Make Money with your Phone here.