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> Actually most people's time is cheap, so eventually people won't be ok with paying delivery fees But it would work backwards too. India's able to do super lo

by jeswin 5y ago

> Actually most people's time is cheap, so eventually people won't be ok with paying delivery fees But it would work backwards too. India's able to do super low cost delivery because labor (for delivery) is cheap. A delivery person working for Amazon makes $140 a month - and there's plenty of labor supply. Kirana stores also have delivery, they're paid $100-120 a month. This is not going to change any time soon. They do 30 deliveries a day, so the costs are very minimal.

kamaal 5y ago
Depends on the target buyers, if you are a big township/apartment resident, who works a 9 - 9 job, and don't like walking to the nearest kirana for stuff, you will be happy paying for it. But the vast majority of the buyers, including me(though my time is not cheap), I still prefer spending a weekend afternoon shopping. This includes lots of middle class to lower middle class people whose time is cheap, and its definitely not worth for these people to pay local kiranas for incremental delivery. As a matter of fact this is precisely the kind of crowd that shops at DMart today. These people don't like paying Flipkart delivery fees for grocery delivery. >>This is not going to change any time soon. It will be forced to change, if the masses shop personally and don't like paying delivery fees, the delivery services are just bespoke lifestyle perks for which you pay premium, not saying that won't happen, but eventually its just a thing you are willing to pay for and others aren't. If you walk into a DMart today, it has all the markings of a standard US county Costco. They have cheap food products(wheat flour, rice, other food stuff at almost 30% discount), they have super cheap clothes, shoes, and other home accessories/appliances and all. When you finish shopping they also sell cheap softy ice cream and pop corn as a cooling off experience.
- jeswin 5y ago
  > It will be forced to change, if the masses shop personally and don't like paying delivery fees The masses mostly just shop personally; delivery is the new thing (the change). Delivery volumes are small as of now, and can only increase. The problem (according to a lady who helps with our cooking) is not that delivery is expensive, it is that BigBasket prices are higher than local prices. But BigBasket will eventually figure out how to bring prices down. If you're suggesting that volumes are going to top out soon, I disagree. Smartphones have made it easier for people to order stuff, and hundreds of millions of people from various economic backgrounds are comfortable using them. India's large enough for the trend to continue for a very long time.

by jeswin 5y ago

kamaal 5y ago

Depends on the target buyers, if you are a big township/apartment resident, who works a 9 - 9 job, and don't like walking to the nearest kirana for stuff, you will be happy paying for it. But the vast majority of the buyers, including me(though my time is not cheap), I still prefer spending a weekend afternoon shopping. This includes lots of middle class to lower middle class people whose time is cheap, and its definitely not worth for these people to pay local kiranas for incremental delivery. As a matter of fact this is precisely the kind of crowd that shops at DMart today. These people don't like paying Flipkart delivery fees for grocery delivery. >>This is not going to change any time soon. It will be forced to change, if the masses shop personally and don't like paying delivery fees, the delivery services are just bespoke lifestyle perks for which you pay premium, not saying that won't happen, but eventually its just a thing you are willing to pay for and others aren't. If you walk into a DMart today, it has all the markings of a standard US county Costco. They have cheap food products(wheat flour, rice, other food stuff at almost 30% discount), they have super cheap clothes, shoes, and other home accessories/appliances and all. When you finish shopping they also sell cheap softy ice cream and pop corn as a cooling off experience.

jeswin 5y ago
> It will be forced to change, if the masses shop personally and don't like paying delivery fees The masses mostly just shop personally; delivery is the new thing (the change). Delivery volumes are small as of now, and can only increase. The problem (according to a lady who helps with our cooking) is not that delivery is expensive, it is that BigBasket prices are higher than local prices. But BigBasket will eventually figure out how to bring prices down. If you're suggesting that volumes are going to top out soon, I disagree. Smartphones have made it easier for people to order stuff, and hundreds of millions of people from various economic backgrounds are comfortable using them. India's large enough for the trend to continue for a very long time.