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  • 21 Oct 2022

  • 21 Oct 2022

Dunzo Business Model: To Be The Logistics Layer Of Every City

Dunzo headquartered in Bangalore is an Indian company that marks its attributes in delivering groceries and essentials, fruits and vegetables, meat, pet supplies, food, and medicines in some of the major cities. It also provides a separate service and picks up and delivers packages within the same city.


To be the logistics layer of every city.


To expand all across the country and emerge as the go-to delivery service provider of each of the cities.

Dunzo delivers its services in 8 Indian cities which include Bangalore, Delhi, Gurgaon, Pune, Chennai, Jaipur, Mumbai, and Hyderabad, and also operates a bike taxi service in Gurgaon.

It was founded in July 2014 by Kabeer Biswas alumnus of the University of Mumbai along with co-founders Ankur Agarwal, Dalvir Suri, and Mukund Jha. Before Dunzo, Kabeer founded a company called Hoppr, which was acquired by Hike in 2014. The company started as a small WhatsApp group and started an app-based service. It marks its importance in delivering things from nearby places to the homes of the people within 30 minutes.


Dunzo, Founder

This is the story of Kabir Biswas who founded Dunzo in July 2014. He got an idea and made the whole model of Dunzo. He studied Engineering at the University of Mumbai and later joined Airtel as a sales manager. On his weekends, he used to buy the needed things from outside, which used to consume him most of the time, and because of this, he was unable to enjoy his weekends.

He got shifted to Bangalore and kept on thinking of an idea, and he asked people to contact him for help with the things they needed. This thing spread to more people gradually, and he got associated with 10,000 customers within 3 months on WhatsApp. Mr. Kabir used to deliver all the things his customers were in need of. All those things needed by the people were supplied to them by Mr. Kabir, which lasted for around 3 months. Mr. Kabir thought to make this work as a business.

He selected some friends who were working like him. Mr. Kabir thought to increase his team members, and went to some nearby NGOs and had contact with some college students and asked them to do part-time work with him. Some students agreed to do part-time work with them and started delivering his orders, and ultimately Dunzo started becoming the best platform.

Escalating Business

Dunzo, Escalating Business

They started getting good funding, and later on made a website and were giving service to the local people. They further looked for more funding to make the process more automated and also to invest in technology. He talked to many investors but has not got any funding.

Finally, he received funding from Google. The company is currently working in 8 cities, and its business model provides a way to the offline shops, and whatever orders they would get will be delivered by Dunzo. Despite going to more cities, they provided more services to the existing customers.

They intended to grow their business by fulfilling each and every need of their existing customers. It is also using Artificial Intelligence to understand the needs of the customers and satisfy their needs. It mainly focuses on customer satisfaction.


Dunzo, workflow

Firstly, the user needs to install the app, and whenever they need any item within the same city, then they can book it on the application. The team of Dunzo will come and pick up that item from the pick-up address and deliver the item from the address and deliver it to the destination of the users. The company marks its attribute in delivering the items to the users in a quick span of time.

It provides convenient services through the mobile app which functions through a data-driven platform and website as well. It fulfills the demands of the customers on time and gets connected with them. The customers can also track the location and activity of the delivery person throughout their journey until they deliver the product.

Revenue Model

Dunzo, Revenue Model

The company generates revenue from different sources -

1. Delivery Fee

Dunzo charges a delivery fee for each delivery it does, which ranges from Rs. 10 to Rs. 60 that depends on the total value of the order that has to be delivered and also on the distance to be covered.

2. Commissions

The company charges a commission rate from 15% to 30% from the tie-up vendors. When they deliver the needed things to the customers, then they charge the delivery commission from the customers. They charge a commission from the shopkeepers they take the things or products from.

3. Digital Advertisements

They show digital ads for some shops on their website and show the customers to place an order from this website. It has its expenses from the delivery system, support system, and technology.

4. Surge Pricing

The company gets its revenue from surge prices, and when there is a hike in demand, the price increases as per the increased demand.

5. Other Categories

It also offers all other kinds of request services that are known as #kuchbhi requests within the company. Dunzo satisfies the needs of the people with its quality services.

[The images are being taken from the registered companies and belong to their respective owners only.]