Considering that the average order value (AOV) in express commerce is lower than that in scheduled delivery, Menon said the combined average order value on BigBasket will continue to be higher.
Tata-owned online grocery retailer BigBasket has shifted its focus to fast-paced commerce, making 10-minute delivery the default option on its platform.
The company has merged its Super Saver (slot delivery) and BB Now (fast commerce) services into a single interface, offering customers a seamless shopping experience.
Hari Menon, CEO and co-founder, BigBasket, said, “We are not doing away with timed delivery, but are making fast commerce the default option. This change reflects our commitment to fast delivery and customer convenience.”
This shift is of enormous significance for the ongoing war for market share between fast-moving and traditional e-commerce players.
With this move, BigBasket now brings its 30,000+ stock keeping units (SKUs) to the fast commerce segment. This figure is much higher than Blinkit’s 25,000 SKUs and Zepto’s 10,000.
Zepto has stated that it intends to increase the SKUs on its platform to 20,000 before the festival season begins.
In addition to this major expansion of its fast-commerce offering, Bigbasket is also ramping up its dark stores.
“We are also expanding our dark store presence. In the first phase, we will add 600-700 more than the current 400. Over time, we will add more,” Menon said.
Considering that the average quick trade order value (AOV) will be lower than that of scheduled delivery, Menon said the combined average order will remain higher on BigBasket.
“Our AOV will be a combined average value which will include both fast trade and wide assortment. The AOV for our slot selling category is around Rs 1,300-1,400 per order and the AOV for fast trade will be over Rs 500. Hence, we expect the combined order value to be above the Rs 1,000 price range,” Menon added.
Menon disagreed when asked if the reason for expanding into fast commerce was the growing competition from players like Blinkit, Instamart, Zepto and Flipkart.
“Fast retail as a segment is booming and growing beyond supermarkets. That’s what we’re seeing. We still have customers who prefer delivery at certain times and tend to opt for that only. This is simply a convenience factor for our customers, which we don’t want to miss,” he said.
Menon also said that BigBasket has expanded its product categories. Apart from the usual categories, it also has segments like toys, stationery, electronics and accessories, over-the-counter medicines and more.
First published: August 27, 2024 | 18:53 IS
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.