Milkbasket’s founder says no to Subscription model for Online Grocery

Committing to just one type of fruit for six months isn’t easy. But at the same time who wouldn’t want to buy everything online. With a thought so enticing as this, which lets you do all your shopping while you still lie on the the bed in your pyjamas, it is important to weigh on the various aspects of subscribing your groceries.
There’s a lot of debate going on as to whether subscription revenue model saves time or just money. If applied the right way and used for quality products or services, the Subscription model can earn the service provider with stable revenue. But it doesn’t always work out for the consumer.

Pros:

  • It is especially helpful to subscribe to items that you can't find in your local/Kirana stores.
  • This is great for items that you mean to replace on a regular basis but often forget.
  • You get discounts on the subsequent purchase and hence you save a considerable amount.
  • Most of the time there’s free shipping available when you have subscribed.

Cons:

  • Preferences are dynamic in nature.

Founder of the grocery delivery startup Milkbasket Anant Goel say subscription revenue model doesn’t work in India because – grocery shopping in the country is more wish-based and impromptu. It limits the choices of the consumer.

By making use of big data, artificial intelligence (AI) and machine learning (ML),it aims to spread out across different cities in two years.

“The R&D centre will drive technical strategy to transform user experience and shape how customers purchase products on the Milkbasket platform. AI will be at the core of Milkbasket’s transformation from tech-enabled to a tech-led organisation,” said Goel who targets to create an advanced target experience.

The online grocery arena is hard to explore because consumer behaviour is dynamic in nature. A business with relatively low sales volume is perhaps a right model to follow than Hypermarket models in a country as diverse as India.

Milkbasket currently serves 250 communities in Gurgaon alone. With a workforce of around 400 employers, the firm has seen a growth of 15-20% in the rate of orders with more than 11,000 orders per day. It plans on strengthening its engineering team and set up a new research and development (R&D) centre.  Currently, it has a total warehouse capacity of around 60,000 square feet.

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