CasetifY

A Case Study Competition

Team Name: Athulya Advisors

Members :
Apoorva
Manya Kapoor
Navya Gupta
Krish Goyal
 Current Scenario
Dunzo, an Indian company, offers delivery services for various items including fruits, vegetables, meat, pet supplies, food, and medicines in major cities.
Company Overview It operated in eight Indian cities and started in 2015 as a hyperlocal delivery startup.

Gained popularity in 2020 due to COVID-19, experiencing rapid user growth from 2.7 million to 5.1 million.
Business Evolution Entered the quick commerce space in 2021, adopting a dark store model.

High operating costs and resource drain due to the capital-intensive dark store model.
Challenges Faced Intense competition in the Quick Commerce Industry with new players backed by market giants.
Insufficient marketing expenditure (10% of total), leading to a lack of customer acquisition.

Accumulated losses at a high rate despite increasing revenues.

Financial Struggles During FY23, incurred a loss of Rs 1800 crore with revenue standing at Rs 226 crore.

Reliance purchased 25.8% of Dunzo at a valuation of 775 million USD.

Reliance Investment Reliance's veto powers in decision-making hindered Dunzo's ability to raise additional funds from the market.

Facing a funding freeze and loss of control over management decisions.

Current Situation Shut down dark stores in multiple cities, losing the hyperlocal delivery model's unique selling proposition (U.S.P).
Financial outlook is bleak, with the company experiencing significant losses despite operating revenues.

Dunzo's decline stands out as a captivating case study in India's startup landscape. Despite an early advantage
in hyperlocal delivery, the company faltered against competitors like Zepto, Blinkit, and Swiggy Instamart. The
primary reasons for Dunzo's setback include a lack of focus – attempting to navigate both hyperlocal and quick
commerce simultaneously during the pandemic, leading to significant financial burn.

Rekindling the fire of competition!

DUNZO ASSURES DUES TO FORMER EMPLOYEES BY MARCH 30; SAYS MADE HEADWAYS IN FUNDRAISING!
EARLIER IN JANUARY, DUNZO SAID IT WAS WORKING ON A LONG-TERM BUSINESS PLAN TO CLEAR LIABILITIES AND REPAY PENDING SALARIES.
MOVING TO A PARTNER STORE FORMAT. IN DECEMBER, SEVERAL OF DUNZO'S PARTNER STORES, INCLUDING EASY BAZAR AND MK RETAIL, WENT
OFFLINE TEMPORARILY AS THE COMPANY DELAYED PAYMENTS OF GROCERY ORDERS. THEY RETURNED ONLINE IN THE SAME WEEK AFTER THE DUES
WERE CLEARED.
‘MAJOR FOCUS’
B2B VERTICAL DUNZO
HYPERLOCAL DELIVERY COST REDUCTION
MERCHANT SERVICES

FURTHER BUSINESS EXPLORING

DELIVERY OPTIMIZATION LOW-COST STRATEGIES
OPTIMIZATION PARTNERSHIPS
Sources: Economic Times, Financial Express, Youtube, Yourstory, FinShots
 Expansion Methodologies
Transport service integration
Dunzo has the potential to collaborate with companies in Bangalore to facilitate a
more efficient and reliable means of transportation for employees. Leveraging its
fleet of bikes, Dunzo can offer flexible transportation options for both day and night
shifts, thereby addressing the city's traffic woes. By providing an affordable alternative,
Dunzo can become a go-to choice for small businesses, particularly in the BPO sector,
where transportation for night shifts is a prerequisite, but traditional cab services can
be prohibitively expensive, costing 30-40k per cab.
This innovative move could involve transitioning Dunzo's Gurgaon bike service to
cater exclusively to corporate offices, positioning Dunzo as a crucial partner in
addressing transportation challenges. This shift not only enhances Dunzo's business
prospects but also establishes it as a practical and cost-effective solution for corporate
transportation needs in both Bangalore and Gurgaon.
Logistic Tracking system
Several companies depend on courier and logistics providers for both product delivery
and tracking. Customers are then redirected to these providers' websites instead of
checking the company's website for tracking information. This extra step can be
inconvenient for customers.
To offer a seamless tracking experience, Dunzo can provide these
companies with their tracking system, which streamlines the process
and enables customers to track their products directly on the
company's website. This approach enhances efficiency and overall
customer satisfaction.
EV collab
Dunzo has the potential to establish itself as a forward-thinking and cost-
efficient market player by partnering with an E-vehicle company and
transitioning from traditional delivery vehicles to electric ones. Such a
move could help Dunzo save significant fuel costs, which could
subsequently be utilized to address any existing financial challenges.
Additionally, a revenue-sharing model with the E-vehicle company could
be implemented, whereby the costs of using electric vehicles are fairly
distributed based on the revenue generated. This approach would not only
benefit Dunzo's financial condition but also align with its sustainability
goals.
Bike sharing
Dunzo has the potential to implement a bike-sharing program that could
be beneficial for both the company and its drivers. The proposed model
involves allowing drivers to lend their bikes to those who don't have
access to them, for a fee. Drivers could dedicate an additional 10 hours to
this initiative, and they would earn 15-20% of the revenue generated
through bike rentals.
This approach not only provides an additional source of income for drivers
but also enables Dunzo to maximize the use of its resources. Essentially,
it's a way to transform idle time into a profitable opportunity.
 HYPERLOCAL DELIVERY SYSTEM
BUSINESS VERTICALS : OUR USP
B2B Services
Dunzo will continue its B2B service and improve its REVENUE : 24HR DELIVERY
operations to get market share. Dunzo can partner with FIXED CHARGE --- Rs.30 Convenience is now a necessity. Dunzo will provide
24-hour Delivery. Cities like Bangalore, and Gurgaon
logistics companies that need to shift their goods from +
one hub to another on daily basis. Platform Fee --- Rs. 2 never stop. People working at night shifts
or who can’t leave their homes at
On-Demand Delivery +
night will benefit a lot. Now be it
Other than usual partnership we will provide real-time Per KM charge ---- Rs.5
day or night, medicine or packet
hyperlocal deliveries at any given point of time, After 3Kms, per extra kilometre
of lays, anything anytime at the
irrespective of whether merchant and business require. 5rs will be charged, also in high
demand locations SURGE charge
customer’s doorstep
Also we will ensure safe delivery of the goods to costumers
will also be taken
as well
1st DELIVERY FREE!!!
60-80% of the total Delivery
Pick and Drop Services Charge will be given to the
Dunzo will provide 1st delivery Free, which will help
It is all about going back to basics. We will continue providing our delivery partners. to bring customers back on the platform. Also in the
point to point delivery as before to our indiviual users long run we plan to spend more on marketing

NO RIGHT TURNS ANY MORE, LEFT TURNS FOR RIGHT DESTINATION

Waiting for traffic when making a right turn on a bike or any vehicle can create idle times and increase fuel consumption.
However, opting for more left turns or alternative routes can reduce both delays and fuel consumption while simultaneously
improving safety for drivers and pedestrians. To enhance delivery operations, companies can make use of advanced technology
such as algorithms, GPS, and telematics. Thus optimizing there delivery services.
 EXECUTIVE SUMMARY
BIKER’S ROUNTINE: EXPANSION METHODOLOGIES
BUSINESS VERTICALS : During Morning:
Biker will provide corporate transportation, dropping off Transport service integration
B2B Services employees at the office. We propose to partner with BPO and other small-scale businesses to
Dunzo will continue its B2B During Daytime:
provide their employees with pick-up and drop-off services. This
service and improve its Our bikers will provide B2B services, on-demand delivery, and partnership holds a considerable advantage for these companies, as
operations to get market share. pick-up and drop-off services. they no longer have to bear the expense of purchasing cabs.
During Evening: Furthermore, employees will benefit from a faster and more efficient
On-Demand Delivery Biker will provide corporate transportation, dropping off commute to and from work.
Real-time hyperlocal deliveries employees at the home from office.
EV collab
will be offered beyond usual During the Night time:
Dunzo has the potential to collaborate with EV companies for bike
partnerships, available at any Bikers who work during the day can rent out their bikes to
others. Meanwhile, other bikers can utilize these rentals to carry rentals, which would significantly cut down the expenses of procuring
time for merchants and vehicles, thus leading to substantial cost reductions.
out deliveries during the night.
businesses.
24HR DELIVERY Logistic Tracking system
Pick and Drop Services Dunzo offers 24-hour delivery services for people living in fast- Dunzo has the potential to offer a tracking system to smaller
The focus is on returning to paced cities like Bangalore and Gurgaon. This service benefits businesses that lack the resources to create one themselves. By
basics by maintaining point to those who work night shifts or cannot leave their homes after implementing such a system, smaller businesses can enhance their
point delivery for individual dark. Customers can receive their orders at their doorstep, customer satisfaction. The tracking system consolidates all
users. anytime, whether it's medicine or snacks. information and updates in one platform, eliminating the need for
customers to navigate the courier company's website.

NO RIGHT TURN --- > COST REDUCTION Bike sharing

Choosing right turns can increase wait times and fuel consumption, while
alternative routes or left turns can enhance safety and reduce fuel usage.
DUNZO can use advanced technologies like GPS and telematics to optimize
operations and achieve more efficiency.
Dunzo's bike-sharing program offers an opportunity for drivers to
earn supplementary income by renting out bicycles for a fee. By
committing to 10 hours, drivers can earn between 15-20% of the
rental revenue, effectively utilizing resources and converting idle
time into profit.