So the idea that I will be crushed by a local delivery boy is not correct. to be honest. Of course, there may be distribution differences from company to company, but generally speaking the idea from a logical point of view makes sense. There is no doubt about that. A related point that you need to understand about these hyper-local delivery networks is that when it comes to companies like Zomato or Swiggy or any big-name Zipto, for example, these days these companies operate.
Job Opportunity for Delivery Boy in India
The method is very simple, that they collect a lot of data from you. They keep analyzing that data. So as a result they are able to do something called demand forecasting. For example, they will be able to estimate how many sets of Colgate toothbrushes they will sell tomorrow. So they stock their supplies according to these dark stores or these hyper-local networks. So this combination of dark stores, this combination of demand prediction is able to facilitate this business model. So in principle and operationally it makes sense that this kind of ten-minute delivery business can be executed. There is absolutely no problem there.
Future for Delivery Business and Job in India
I’ll also put some excerpts here for you to see. Why does Zomato think it will be able to reference the ten-minute delivery concept in the food delivery space? Because right now when you have companies like Zip Codes, what are they doing? They are delivering everyday products like toothpaste, toothbrush, all these basic basics. But Zomato is foraying into the hot food delivery space. So it still has to refer to the ten-minute delivery concept in this hot food delivery space. So this brings us to point 2 why is it that Zomato is entering this space and does it make sense for them to enter. So there are two very big reasons for Zomato to enter this business. Reason number one is that people have gone loco, they need stuff, they have no patience, no waiting power. It is a distinct tradeoff that will define human development, perhaps because we have become so used to the features. Ott, we need to watch movies now. We have to order food now. We want delivery of our food items now we want everything. So this is a typical rate that is shaping human behaviour and the smartest and richest companies on earth, be it Amazon, Facebook, Google. They exploit human nature. And Zomato sees the potential to exploit human nature here.
So to say I am saying it in the best way possible. This is a great money-making opportunity for a bunch of different companies that they will be able to take advantage of this human impatience to make money. And guess what? And tell me you meet 100 people, how many patient people will you meet? I would love to do that statistical analysis. Let’s move on to reason number two. And reason number two has to do with peer pressure. So this is what Swiggy is working on and Swiggy is the biggest threat to Zomato. Now, Swiggy is already working on Instamart, it is delivering groceries and a bunch of other everyday essentials. So Zomato feels that if Swiggy is able to get this ten-minute delivery logistics right then it can make it relevant in the food delivery space. Now if Swiggy is able to do this then Zomato will lag behind in the race and it puts a lot of heat on Zomato.
So essentially it reminds me of the story of IIT JEE coaching. Now we all know and understand that there is no point in going to IIT-JEE coaching in 6th or 7th grade. But children do. Why? Because all the other kids are doing the same. If they wait to go to ITJEE coaching till the 10th, 11th or 12th then it will be too late. That’s why parents are also scared. The children are scared too. Teachers are scared too. The whole society is very scared. That’s why they keep putting kids in IIT JEE coaching from class VI onwards, a day will come when players will start going for IIT JEE coaching and whatnot. So the same scenario is being played out in this ten-minute delivery game. Also, since Swiggy can do this very quickly, even Zomato needs to build on its capabilities. Otherwise, you will fall behind. And it’s fun to see that giving these unicorns this FOMO now, Zomato actually acquired a company called Blinket.
Now there is a rebranded version of Blinket Growers. So what is Grover? Grover is the perfect competitor to Swiggy in Stamet. So now there is a war going on between Swiggy and Zomato. Not on food tech delivery, but on grocery delivery. One that could deliver groceries faster and more importantly, perhaps a year or a few years down the line, that would be able to enter this hot food delivery space in ten minutes and perfect this model.
So that’s the whole game. Now comes the third and very important point and this will help you to decide whether you should invest your money in Zomato now or not.