The Quick Commerce Conundrum: Kabeer Biswas’ Take

In the fast-paced world of quick commerce, there’s a new player making bold moves. Kabeer Biswas, the CEO and co-founder of Dunzo, has been causing quite a stir. With a recent funding round that secured $240 million, led by Reliance Retail, and the acquisition of a 25.8 percent stake after a $200 million investment, Dunzo is well on its way to becoming a key player in the quick commerce landscape.

But here’s the twist – while everyone is buzzing about 10-minute deliveries, Biswas is charting a different course. He’s sticking to a 20-minute average delivery time. When asked about the supposed difference between a 10-minute and a 20-minute delivery, Biswas humorously responds, “I don’t understand the difference between 10 and 20.” In his view, conclusive data doesn’t exist to support such a distinction. He firmly believes that Dunzo can achieve profitability with a 20-minute delivery time, sticking to the 20-minute delivery proposition. In this blog, we’ll dive deeper into Biswas’ insights and his perspective on the quick commerce landscape. We’ll explore why he thinks that a 20-minute delivery is just as relevant as a 10-minute one and why there’s more to quick commerce success than just speed.

Biswas’ journey in the hyperlocal delivery business began a while ago. While the term “quick commerce” might be relatively new, the core principle of delivering quickly has always been at the forefront of his business. The model for quick commerce in India has its unique characteristics, including the need for delivery fees. In Bengaluru, for example, customers can choose between a 15-minute delivery with a ₹25 fee or a 45-minute delivery at no extra cost. According to Biswas, most customers find a delivery window of 15 to 20 minutes perfectly acceptable. But what about free deliveries in quick commerce? According to Biswas, to maintain healthy profit margins in instant delivery, charging a fee is essential. However, for larger orders, instant delivery can be offered at no additional cost. The demand for instant delivery is genuine, especially as people seek to digitize their everyday and weekly transactions. Biswas believes that this category is poised to outpace traditional food delivery.

In the quick commerce game, is speed the only factor that determines success? Biswas thinks not. While speed is undeniably important, it’s not the sole factor that defines success. Other crucial elements include price, product selection, price points, quality, speed, and reliability. Excelling in three or four of these pillars can compensate for shortcomings in the remaining ones. Biswas emphasizes that prioritizing speed alone won’t suffice. While being fast is essential, the economic viability of the business over the long term is equally crucial. Biswas also points out that many global quick commerce players have adjusted their strategies. They initially focused on 15-minute deliveries, but as they expanded, this promise gradually faded. Now, they emphasize “daily essentials delivered in minutes.” Succeeding in the quick commerce realm requires a multifaceted perspective rather than a one-dimensional view.

As Kabeer Biswas navigates Dunzo’s course in India’s quick commerce landscape, his approach underscores the need to strike a balance between speed, pricing, selection, quality, and reliability. In a sector that’s constantly evolving, a comprehensive understanding of consumer expectations is likely the key to triumph.

The world of quick commerce is evolving, and Biswas’ unique perspective offers a glimpse into the complexities of this dynamic industry. With Dunzo’s impressive growth and Biswas’ pragmatic approach, the quick commerce puzzle is slowly but surely falling into place.