Dunzo to commence operation in Chennai, after Hyderabad

Shubham Kumar Shubham Kumar
Oct 22, 2018 2 min read
Dunzo to commence operation in Chennai, after Hyderabad

The app-based delivery service Dunzo is all set to enter Chennai. The platform started its operation in Hyderabad last month.

Dunzo allows users to create a list of tasks for pickup and delivery. This delivery service allows users to create a list of tasks for pick up and drop off wherever they like, as long as the task items fit on delivery agents’ motorbikes. The company has partners with departmental stores and make commissions on each grocery purchases. It also charges delivery fees based on the distance between pick-up and delivery.

Chennai’s very own on-demand logistic startup, Genie will drive Dunzo operations in the city. Following the tie-up, Dunzo spokesperson issued a statement saying,

β€œIt’s exciting to have the Genie team onboard and we are relying on their vast knowledge about Chennai to help provide a great Dunzo experience to every user.”

From Whatsapp to its own independent app

Both the digital delivery service platform, Genie and Dunzo started over as a small Whatsapp group addressing a new customer necessity that had never been dealt with before – that lets users outsource mundane errands that include things to be picked up and delivered. Dunzo, later was developed into an app in the year 2016. Today, The app has managed to make almost everything accessible. With over 1 lakh app downloads and 40,000 delivery executives, Dunzo expects to scale up its logistics to 25,000 by the end of 2018.

Dunzo was first started in 2015 by Kabeer Biwas, former co-founder of the hyper-local company, Hoppr. During its early stage, about 85 potential investors were not ready to sign big cheques for the company because logistics were undergoing huge losses in 2015-2016. Then came Google which lead a $12 million funding round which was also it's first direct investment in the country. Dunzo generated revenues of 10.8 million in the FY17, four times that of FY16.

Delivery service platforms like Dunzo

While Dunzo has managed to survive, other hyperlocal startups, providing similar services, that have shut down their operations – TinyOwl, Spoonjoy, Dazo among others.

With a very similar idea to that of Dunzo’s completing users’ tasks was a chat-based platform, Lookup. Additionally, the latter also connected local businesses to its users through queries posted by them. However, it eventually shut down its operations in 2017, a year after the software products startup, Nowfloats acquired.

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