How Dunzo Works: Have Insight into Dunzo Business Model

Multi-service apps or super apps have made people’s lives more convenient than ever before. Such apps provide multiple services within a single module. Some popular examples of multi-service apps are Gojek, Dunzo, Grab, etc. The super app idea is undoubtedly profitable. In this article, we’re going to discuss everything related to the popular multi-service app Dunzo. Here you can have insight into the Dunzo business model, how it works, make money, etc.

Modern people yearn to enjoy hassle-free lives, and smartphones play a significant role in achieving this goal. Mobile app usage is increasing these days globally. User engagement and retention are expected to increase mobile app revenues to 613 billion by 2025. Due to all-inclusive offerings, mobile apps have been chosen by millions of people, and one such app is Dunzo. Many business owners are getting inspired by the Dunzo business model in order to create digital solutions similar to it.

What is Dunzo?

An Indian company, Dunzo, is an instant delivery platform. The company delivers fruits, vegetables, food, medicines, and other essentials to customers’ doorsteps. It has separate services for picking up and delivering packages within the city. It provides its delivery services in more than nine cities, including India’s capital city, Gurgaon, Jaipur, Pune, Chennai, Hyderabad, Mumbai, and Jaipur.

Some Interesting Things to Know About Dunzo

Type of business: Private

Platform Language: English

Founded: July 2014

Headquarters: Karnataka, Indiranagar, Bengaluru, India

Area served: 9 cities

Founder(s): Dalvir Suri, Mukund Jha, Ankur Agarwal, and Kabeer Biswas.

Chairman: Abhishek Venkateshwara

Services Offering: grocery delivery, taxi-hailing, medicine delivery, local couriers, laundry delivery, package pickups, and drop.

Users: 10 lakh monthly orders

Current status: Operational

Parent Organization: Dunzo Digital Private Limited

Native client(s): Windows, Android, and iOS

Want to have a look at Dunzo’s success, have a quick look over its story #WahanSeYahanTak; it will surely give you a glimpse of how the founders got the idea, how they started, etc. Check the video for more:

https://youtu.be/LEmxkwMnMXI

Funding History, Success Store, and More to Check About Dunzo!

Before launching Dunzo, Kabeer Biswas founded a company, Hopper, which was later acquired by Hike. Later in July 2014, he launched the delivery platform. The company was started as a small WhatsApp group, which was later transformed into a hyperlocal app-based service. Dunzo is headquartered in Bangalore. Want to have insight into the company’s success and funding history? Have a quick look over the image right away.

As mentioned in the image, Dunzo partners with PepsiCo India to deliver its snacks brands like Kurkure, Lay’s, etc., to customers on their demand amid lockdown in Bengaluru. It helps PepsiCo to keep its ‘Direct-to-Customer’ initiative.

In the same year, 2020, Google Pay and Dunzo partner with each other, enabling the delivery company to offer medicine delivery, grocery delivery, bike pool, and other services to customers with ease.

In 2021, due to changes in Google Pay terms on sales of liquor and tobacco, Dunzo launched a parallel app, Dunzo Mo. Users can download the app as an APK file on the website. Paan, liquor, and tobacco items are no longer sold on Dunzo’s Android app; however, it’s available for iOS app users and also on the website.

Dunzo, with the aim to expand its quick commerce, launched Dunzo Daily in 2021. The app helps the multi-service delivery giant to deliver all household and essential items in just 19 minutes. In January 2022, Dunzo raised US$240 million in funding in a round led by Reliance Retail along with existing investors Lightbox, 3L Capital, Alteria Capital, and Lightrock.

Reliance Retail funded around US$200 million for a 25.8% stake in Dunzo. Are you inspired by the Dunzo business model and looking to launch a similar business? Then you can invest in delivery anything app and launch your multi-service business online. The platform consists of all modules and features that help you automate business activities and manage them efficiently right from one platform.

Dunzo Business Model: How Hyperlocal Marketplace Giant Works?

Dunzo follows a hyperlocal delivery business approach, making the Dunzo business model successful and must be followed by many delivery business entrepreneurs. The company uses a data-driven strategy to match delivery employees to the nearest users requesting the service. An on-demand delivery platform transformed the way customers shop, commute, and transfer goods.

A Dunzo business model is exemplary of a two-sided network. One side of the network benefits customers, and the other is advantageous for merchants. The hyperlocal delivery company is offering drone-based deliveries of medicines in Telangana. Dunzo has partnered with the Telangana government and Skye Air to begin vaccine and other medical delivery.

https://www.instagram.com/p/CUm5vFXleoj/?utm_source=ig_web_copy_link

Dunzo has tie-ups with lots of restaurants, clothing stores, shops, and general stores. The company is offering on-demand delivery services in more than nine cities in India. This delivery platform has turned into a great convenience and helps users who can’t go out or don’t want to go shopping, deliver products, and more.

Customer Segment

Being an HLD (hyper-local delivery), Dunzo is leveraging a huge target segment. Dunzo is the best option for people of all age groups, including 65 years olds who want their medicines to be delivered and children who want to get their notes from friends’ homes. Customers can have their food, medicines, and more delivered to their doorsteps.

Hyperlocal Marketplace

Time factor and geography dictates the hyperlocal marketplace’s success. The Dunzo business model has a short delivery time covering diverse categories and extensive areas. The company is building a hyperlocal marketplace for businesses that drives hyper-local and on-demand deliveries.

https://youtu.be/AJprUrPDsKo

Dunzo has partnered with more than 10,000 merchants and has succeeded in increasing its revenues by 150%. Fast-moving goods are the grossing segment in this model. It has led Dunzo to be an investor-led and shopping-focused business model leading to an average order value. Find how Dunzo makes it easier for businesses to list their service and avail it to customers on their demand.

Dunzo partners with LeadSquared to build a seamless merchant-first product. The company integrates a digital marketplace toolkit for retailers who are offering traditional services, including eCommerce logistics, demand prediction, and inventory management. It’s sold on the delivery app and works on a hyper-local delivery mechanism. It charges around 15 to 30% commission from its partners.

Dark Stores

Dunzo is planning to double its footprint in more than 15 cities; hence the company has increased its dark store count to 200 from 75. The hyperlocal delivery facilitates hyper convenience for consumers to prioritize premium services and time.

How Does Dunzo Work? Step-by-step Process to Have Insight!

The above details might have helped you understand the Dunzo business model to some extent. Now it’s time to dive deep into how Dunzo works to understand its workflow and more right here.

• Users can install a mobile app or visit the website;
• If users require any item to be delivered within the same city, they can request the same;
• They can explore the list of items and more before placing the request;
• The delivery provider of Dunzo will pick the item from one place and deliver it to another;
• the company ensures to satisfy all the delivery requirements of customers within an hour.
• Dunzo charges a small fee for the same.

Dunzo’s user-friendly app and website help the company to provide concierge service on-demand to consumers in the hyperlocal market. The delivery functions via a data-driven platform using which it delivers providers are connected to the user requesting service in a nearby region. The delivery person’s activity and location can easily be tracked throughout.

Users can chat with the delivery provider in case of any emergency. They can also share required product images, information, etc. Once the order is delivered, users can make payments and give feedback as well. The company uses AI in its solution to provide its consumers with a smooth user experience.

A Dunzo business model is designed to satisfy all the needs of customers. The delivery platform enables its customers to order anything like food, groceries, medicines, etc. For example, if people want to send a gift to his/her friend, they can do it through Dunzo delivery.

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Dunzo Revenue Model: How Hyperlocal Delivery Based Company Makes Money?

There are lots of methods to make money through the multi-service app. Dunzo follows a few of the effective ways to generate money. Want to know how Dunzo generates revenue? Explore to know how hyperlocal delivery based company makes money right here:

Delivery Fees

Just like other delivery companies, Dunzo charges a small fee for every delivery. The delivery charge can be anything from 10 to 60; the charges mostly depend on the total distance needed to be covered and the value of the order to be delivered.

Commissions

Dunzo charges a commission rate from its partners per order they receive on the platform. The commission charge can range from 15 to 30% from the tie-up vendors.

Surge Pricing

Dunzo generates great revenue from surge prices. When there is great demand, the company increases its price accordingly.

Dunzo provides different types of services, including home services, repair, taxi booking, etc. Besides the multiple services such as grocery delivery, food delivery, and others, the company provides different categories of business services. The company provides all kinds of requests, naming it as #kuchbhi request within Dunzo.

Future Plan of Dunzo?

Dunzo wishes to become a Unicorn startup and hit the $1 billion revenue business. The delivery platform is looking to expand its business service in 20 urban cities. It also initiated providing 15-minute deliveries for approximately 2,000 commonly sought-after items. The multi-service company is looking to expand its delivery service in the Western and Northern regions of India.

Dunzo has partnered with lots of restaurants, shops, clothing stores, and lots more businesses to offer a smooth and quick delivery experience to its potential customers. Dunzo facilitates users to order anything they like; delivery partners will deliver the same to their customer’s doorsteps.

Launch Your Venture Like Dunzo Today!

So, now you might be having a glimpse of a Dunzo business model and its revenue strategy, right? Are you inspired by the same and want to build your delivery business online? If yes, then it’s the perfect time to do the same. Want to know an app like Dunzo’s development cost or have other queries related to multi-service app solutions? Feel free to contact us at: [email protected]

Frequently Ask Questions

What is Dunzo?

Dunzo is an on-demand delivery service that allows users to order groceries, food, medicines, and more, while also offering tasks like document delivery, pet care, and bike repair. It operates primarily in urban areas, connecting users to local businesses and service providers through its mobile app.

How Does Dunzo Work?

Dunzo works by enabling customers to request services or products directly through its app. Once the request is made, the company assigns a "Dunzo" delivery person, called a "Dunzo Delivery Partner," who picks up and delivers the requested items. The process is fast, convenient, and can be tracked in real-time via the app.

What Types of Services Does Dunzo Offer?

Dunzo provides a wide range of services, including:

• Food Delivery: Ordering meals from local restaurants.
• Grocery Delivery: Ordering groceries and other essentials from local stores.
• Courier Services: Sending documents and parcels across the city.
• Medicine Delivery: Ordering medicines from local pharmacies.
• Pet Care: Pet-sitting, dog walking, and pet supplies delivery.
• Errands & Tasks: Running errands like picking up dry cleaning or buying gifts.

How Does Dunzo Make Money?

Dunzo generates revenue through various channels:

• Delivery Charges: Customers pay a fee based on the delivery distance and the type of service requested. The fees vary depending on the city and the type of delivery.
• Subscription Plans: Dunzo offers subscription models for frequent users, which provide discounted rates on deliveries for a monthly or annual fee.
• Business Partnerships: Dunzo partners with local businesses, offering them delivery services. In return, Dunzo receives a commission or fixed fees for handling deliveries.
• Commission from Restaurants & Groceries: Dunzo partners with restaurants and grocery stores, earning a commission from each order made through the platform.

What Makes Dunzo Different from Other Delivery Services?

Dunzo stands out from other delivery services by offering a broad range of on-demand services. Unlike many competitors, Dunzo doesn’t limit itself to food or grocery deliveries, providing services such as couriering, errands, and pet care. Its flexibility makes it a one-stop solution for customers' daily needs.

How Does Dunzo Ensure Timely Deliveries?

Dunzo ensures timely deliveries through a combination of technology and efficient logistics. The app uses real-time tracking and intelligent route optimization to ensure that deliveries are as fast as possible. Additionally, Dunzo assigns delivery partners based on proximity, reducing wait times.

Can Dunzo Be Used for Business Deliveries?

Yes, businesses can use Dunzo for delivering products to customers or for intra-business deliveries. Many small businesses, such as local stores and restaurants, partner with Dunzo to offer last-mile delivery services. Dunzo helps businesses expand their reach and provide convenience to their customers.

How Does Dunzo Ensure Quality and Safety of Deliveries?

Dunzo ensures the safety and quality of deliveries through multiple steps:

• Background Verification: All delivery partners undergo thorough background checks to ensure trust and safety.
• Real-Time Tracking: Customers can track their orders in real time, ensuring transparency and timely updates.
• Secure Packaging: Items like medicines, groceries, and food are carefully packed to avoid damage during transit.
• Ratings System: Both customers and delivery partners rate each other, maintaining high standards of service.

How Are Payments Handled on Dunzo?

Payments are processed securely within the Dunzo app. Customers can pay via credit cards, debit cards, mobile wallets, or other online payment methods. Dunzo also allows cash on delivery in certain areas. Once the payment is made, delivery partners are credited for their services through the app.

What Are the Future Plans for Dunzo?

Dunzo is focusing on expanding its services in new cities and improving its platform with advanced features like artificial intelligence (AI) for better logistics management. The company is also working on strengthening partnerships with local businesses, including e-commerce platforms, to offer faster and more efficient services.