The grocery retail and delivery services have seen a massive growth in multiple regions across the globe. With the advent of Amazon Now, Big Basket and their likes, the grocery eCommerce market has been revolutionizing at a breakthrough speed. With new startups cropping up to cash in on the increasing demand of the industry, the last two to three years have been a good time period for these startups. We saw series of multiple VC fundings, huge order sizes and a healthy market competition. However, with the latest news about Peppertap closing their shutters for good, the grocery retail market has come under a lot of speculation, raising questions about what went wrong with the golden picture painted above. Let us put the live case study of Peppertap under the microscope and see what could have been done better to avoid such circumstances.
The Glorious numbers
From coffee shop pitches to the first of its kind 100% inventory less model, in less than two and half years, the journey of Peppertap was no short of extraordinary. They had over 20,000 average orders on a daily basis, catapulting them to the top three grocery delivery services in India. The mobile first approach was easily adapted across geographies. The local store owners increased their sales by up to 30-40% by registering with the mobile app. The introductory discounts and sale tactics were great and innovative. The numbers were too good to be true.
What went wrong
We cannot pinpoint the downfall of the grocery giant to any one particular reason. There were many things that happened in parallel that were to blame. The integration of local store with the app was not too great. The inventory status was not always correct, thereby leaving some orders being partially fulfilled. In the race to give great discounts for bigger consumer adoption rate, they were losing revenue for every order. And many more such reasons combined together to paint a picture that was not too great. Given such a scenario which is common across all grocery delivery services, only one question arises.
How can Grocery e-Commerce/Delivery services avoid a similar fate?
Contradictory to popular belief that grocery delivery is more operations and marketing than technology, we analyzed and came across a few pointers that could revolutionize the grocery eCommerce business and impact their revenues positively.
Though there is no limit to the technological advances one can achieve in their product and service offering with help of web crawling services, the ones mentioned above are a sure shot way to help the grocery delivery businesses pull themselves from the false glorious numbers and get started on the road to long term success.
Do you have more such ideas to help grocery retail services? Comment below to discuss further.