Dunzo Business Model | How Does Dunzo Make Money?

Anamika Mahapatra Anamika Mahapatra
Apr 11, 2022 6 min read
Dunzo Business Model | How Does Dunzo Make Money?

Assume you've got a strong desire for pasta but need to replenish your medication supply. You immediately realize that you need to collect your laundry for a big event. Would it not be wonderful to do everything on a centralized screen? Dunzo is exactly that.

Dunzo is an on-demand, hyper-local multi-delivery care app. It provides anything to its customers for a modest shipping cost. For example, if you forgot your MacBook at work or some documents at home, it can get them to you on demand.

Alternatively, if you wish to shop for food from the market or a hoodie from the retail outlet, the multi-delivery services provider will get it for you. It's worth noting that none of these diners, shops, or retail chains is owned by the firm. Its business strategy is based on shipment.

Ankur Agarwal, Dalvir Suri, Kaber Biswas, and Mukund Jha co-founded this incredible Bengaluru venture in 2014. They took orders via WhatsApp and received significant attention from early adopters. However, as the company and its clientele grew, they instantly transitioned to an omnichannel framework, securing visibility through a Mobile app, an iOS app, and a web page.

Business Model of Dunzo
How Does Dunzo Make Money?
Dunzo Marketing Plan
What Is Unique About Dunzo’s Business Model?

Business Model of Dunzo

Dunzo is an on-demand distribution network that has revolutionized how folks buy, exchange products, and travel. In today’s market, it's an example of a two-sided channel. Buyers are on one end of the link, and sellers are on the other. It serves as an eCommerce platform, bringing together buyers and sellers.

It adheres to a hyperlocal business model, ensuring app progress and longevity. It runs things via a phone app and a webpage. In the hyper-local market, the portal provides on-demand concierge. The firm runs using a data-driven approach that links shipping suppliers with clients in their direct proximity.

Dunzo App
Dunzo App

Clients can even talk with the supplier via the chat room; they send pertinent product photos and interact effectively. The portal gives Dunzo money and a variety of other electronic payment methods. It makes great use of AI. for its clients, assisting them in providing a contented and sleeker interaction when people request it.

As the market grows stronger, the firm gains traction, rivals arise, and the industry becomes far more competitive. It presently faces competition in the market with well-known brands such as Swiggy and Grofers.

How Does Dunzo Make Money?

Dunzo has divided its earnings into 5 different channels.

  • Transaction Fee– It charges a pertinent fee from the alliance shopper order, which can range between 15% and 30%.
  • Shipping Fee– Shipping fees vary from Rs. 10 to Rs. 60, based on location & order value.
  • Uptick cost – Also known as Surge pricing is used when demand in a specific location rises.
  • Service – Repair and maintenance, homecare, and so on.
  • Miscellaneous Bracket– It is known as a #kuchbhi demand, according to Biswas, the creator of Dunzo. The role determines who is in charge of such sections.

The following are some examples of #kuchbhi requests:

  • Take a 15 seconds clip of my apartment as it is being built to ensure that everything is working perfectly.
  • Please bring my blazer from the apartment.

Dunzo benefits from a larger consumer snippet because it's in the Hyper-Local Delivery biz. Its clientele can span from a 65-year-old guy who needs his homeopathy delivered as promised to a 12-year-old youngster who borrows his mate's classwork notebook.

Dunzo Marketing Plan

It experiences numerous challenges in its advertising campaigns. Its main aim is to share awareness of the app's versatility by publicizing it via varied touchpoints. However, because most biz is done online, it effectively uses its internet site by building a reputation distinctive to its customers.

Bollywood quotes:

It employs Bollywood buzzwords and dialogue to pique the interest of the audience. The daily alerts are usually interspersed with beautiful songs or movie titles.

Promoting through memes:

It's a well-known trend follower in memes and adverts. It quickly adapts to the web, and its fresh meme-based promotional tweets quickly become popular.

Promoting on Social Media:

Its content is frequently vibrant and synchronized with the logo's primary green or black colors. On touchscreens, the label forms a powerful interactive world that instills optimism. It prefers Instagram, Twitter, and Facebook. It attempts to disseminate everyday life tweets through the use of their totems, Harri and Dunya. These characters, attired in Dunzo gear, portray Dunzo-thoughts partner's in everyday situations. The app-based delivery company is on its way to Chennai.

Last month, the portal launched in Hyderabad. It enables clients to generate a list of dispatch tasks. It's focused on building brand awareness among its army. The aim is to show the activities and cohesion of the multiple brands as they're all together in this time of turmoil. It expresses employee personal info and emphasizes the importance of their hard graft to keep things running. Its collaborators' organizations were also disclosed.

Hyper-Local Interaction:

Because it handles hyperlocal stock, it is critical that the urban areas where it renders care are adaptable. It accomplished this by utilizing illustrators as well as modifying actual pictures. The label aspires to capture the heartbeat of the town and to become a factor in society.

Twitter:

It relies heavily on Twitter, like any label that provides customer care. With two-way interaction, they can ensure clients feel respected. It has lately become more pertinent than ever, as folks have more queries about shipments during the pandemic. It also aids in the promotion of brands and processes.

The Ordinary's Content:

One of the most striking features of its online interaction is the way they generate content from everyday objects. These are mostly food-themed, which performs well due to the subterfuge and approachability. It helps users in seeing these items in a fresh way.

Uniformity and Promotions:

Dunzo was inspired by a popular Instagrammer named 'Dude with a sign,' who stayed in crowded locations with signage that discussed specific aspects such as informing people. It was one of the first labels to use the layout in their interaction. It's since been used repeatedly in their interaction. Its #90sRedun advert evokes nostalgia. It harks back to such classic ads by remaking them with label assimilation, rewriting catchphrases with a flair, and using the heritage of these labels to travel us back to the good old days.

What Is Unique About Dunzo’s Business Model?

Though most rivals bring on a slew of suppliers and middlemen and then expect their users to locate a means around the facilities, it's solely responsible for delivering the order to the consumer's location.

Its business plan is very flexible and adapts efficiently. For instance, when they noticed that a huge chunk of their clients was repetitively ascribing the same job, they introduced a repeat-task toggle.


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Conclusion

Every startup faces difficulties, and Dunzo was no exception. Initially, the venture had to deal with budget problems, an ineffectual delivery mechanism due to staff taking longer to finish tasks, trouble handling mobile and web apps, and increased costs.

Dunzo aspires to be India's hyperlocal Amazon & notable e-commerce hub. It strives to be a Unicorn with $1 billion worth. It intends to enlist vendors across niche spots and communities in 25 Indian cities in order to achieve a lucrative position.

It intends to navigate international waters using a hyperlocal shipping business strategy in densely populated areas such as Singapore, Dhaka, and New York. It is recreating the notion of a 15-min city by increasing the accessibility and availability of services/goods.

FAQs

What is Dunzo's business model?

Dunzo follows a hyperlocal business model approach where the customer demands a product using the app and the delivery person delivers it from the nearby store.

Is Dunzo B2B or B2C?

Dunzo operates in the B2C on-demand space.

Who is the CEO of Dunzo?

Kabeer Biswas is the current CEO of Dunzo.

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