"No one is harder on a talented person than the person themselves" - Linda Wilkinson ; "Trust your guts and don't follow the herd" ; "Validate direction not destination" ;

March 25, 2022

Cracking the code of 10 minutes delivery, Decoding - Data, Intelligence, Science behind it and Impact

If I get my favorite dish in 10 mins, It would be an awesome moment, the gap between wish vs reality is getting too narrow. Let's analyze closely the data, pattern, and science that bring reality to the promise of 10 minutes delivery.

This timed delivery has made a dent in history too. Domino's had great growth with 30 mins pizza delivery promise when it was competing against pizza hut in the late 70s (1979). This idea of the timed, same day, 30 mins had evolved across Amazon Prime, same-day delivery, swiggy instamart.

This worked best / works for groceries / retailing. 

How does this work? we will look at the pieces of the puzzle that eventually connects the solution.

As a retailer, for example, Amazon, I would know

  • Top selling items in each category
  • Forecast for those items by region / city / etc
  • With forecast/demand aspects I would keep a reasonable amount of stock preordered with essentials / all-time items / seasonal items
  • Most of the warehouses would be available near metros / little away from metros
  • In order to fulfill same-day delivery, you will have to keep some stocks based on future estimates
  • This same-day delivery may be available more for products of certain price range / Higher probability of sale / Vendor warehouses are available within the vicinity
  • Assume the stock is available, the next big thing is delivery

Routing

  • Logistics, Delivery, Routing/packing/delivery is the key
  • With Options to plan based on traffic patterns / leveraging on-demand vendors/availability of labor this delivery is also feasible
  • There could be multiple delivery schedules in certain routes to accommodate this dynamic same day delivery
  • The delivery I have observed is done with two-wheelers, 4 wheelers to cover both times, handle traffic, complete more deliveries

Instamart

  • Many times when we walk near HSR max, you will spot a three-floor building without any details and a lot of swiggy delivery boys waiting and collecting items
  • They are spaces that act as fulfillment centers within the city to deliver items within 30 minutes

How 10 minutes delivery is possible in Food?

  • Compared to other options Food has other factors #freshness #quality
  • Based on previous orders/customer patterns, Apps providers would know peak demand area / repeated buying customers, frequently ordered items
  • A few places where I have seen freshness handled is STAR Biryani. They prepare Biryani at 10AM, 1PM, 5PM, 7PM, They prepare food in multiple time slots based on demand as well as change based on observed behavior
  • This does results in repetitive work, labor, working round the clock to serve #fresh, and meeting #quality
  • Today we spot a lot of cloud kitchens, This 10 minutes delivery can very well be handled within 2 to 3 km of the vicinity
  • Forecasting, Allocating delivery specifically for these orders, Shortest routing approach based on current traffic, Most of this is already handled in their current App for the usual 30 mins normal order delivery
  • Somewhere during the presentation, I captured this screenshot, Zomato / Swiggy know both consumers, restaurants very well.


Caution - Food Quality

  • My personal observation, Out of 10 places only 1 or 2 places I have been a repeat customer, What we see in Pic vs What gets delivered vs Health issues is always a warning
  • During my childhood monthly once/twice was our usual restaurant dining routine, it was expensive and not affordable
  • The 20s/30s We would be able to explore/experiment with food but the preservatives, artificial color, a sedentary lifestyle will reflect the consequences in the 40s
  • This ready-made food consumption in the long term when it exceeds the limits will be a health hazard, Garbage in Damage Done :)
  • The target segment would be primarily working segment / above middle class, Easily today for 2-3ppl you would spend 1000+

Everything, when it exceeds the permissible limit, will become an addiction in long term. 

It was a little long story, let's get back. 

I was thinking of another business idea. If I could prepare an API-based approach where we could directly provide the recommendations/promotions to vendors we can make it more R2C, Restaurant to consumers directly than R2A2C Restaurants to App Providers to Consumers.

I hope some perspectives were interesting :)

Keep Exploring :)

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