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As more consumers seek convenience, BigBasket is shifting its business model to quick commerce with BB Now, moving away from the traditional slotted delivery model. The company will focus on the top 25 cities, including the 10 largest metros and 15 state capitals, out of the 50 cities it currently operates in.
At present, both models are available on the BigBasket app under different tabs—‘SuperSaver’ for slotted delivery and ‘BB Now’ for quick commerce. Over the coming months, the plan is to offer quick commerce to all consumers, says Seshu Kumar Tirumala, chief buying and merchandising officer, BigBasket.
The online delivery business is organised by pin codes. Over the past two months, BigBasket has been ensuring that, area-wise, consumers have access to a single interface offering both immediate and slotted delivery options. The plan is to offer it to 70 per cent of their consumer base within the next 3-4 months. Eventually, consumers will see a single tab, and once they select their products, can choose whether they want immediate delivery or at a scheduled time.
“We are noticing that consumers’ buying cycles are shortening,” says Tirumala. He explains that in the slotted delivery model, consumers typically place larger orders (above Rs 2,000) at the beginning of the month. Fresh items like fruits, vegetables and meat are usually bought on a weekly cycle. However, with the rise of quick commerce, there’s been a significant shift in consumer behaviour. “Now, consumers are not planning for the entire month, and 60 per cent of BigBasket users are placing orders 7-8 times a week.”
Transitioning from slotted to quick commerce will require an overhaul of the supply chain. The company will need more dark stores within cities rather than rely on large warehouses on the outskirts.
“We are not only increasing the number of dark stores but also expanding their size,” says Tirumala. BigBasket is on an expansion drive and aims to grow the number of dark stores to 700 by FY25, from the current 400. “Since we are focused on expansion, our immediate goal is to offer convenience rather than prioritise profitability,” he adds.
Currently, BigBasket offers between 10,000 and 25,000 products for immediate delivery, depending on the size of the catchment area. Out of its total Rs 1,200 crore annual revenue, only Rs 350 crore comes from BB Now, though this is growing very fast.
Regarding new categories, the firm is expanding beyond its core strength of grocery. Basic apparel, such as undergarments, T-shirts and socks, as well as footwear like flip-flops and sandals, are available. Additionally, daily-use items like stationery, toys, earbuds, irons, mixer-grinders, water kettles, fans and computer peripherals are offered too. “Consumers today are searching for all kinds of products on quick commerce as if it’s their neighbourhood market,” reasons Tirumala.
This shift comes amid intensifying competition in the quick commerce sector, with Walmart-backed Flipkart Minutes and Reliance’s JioMart ramping up operations. The quick commerce space is becoming highly competitive, with three major players—Zomato’s Blinkit, Swiggy Instamart and Zepto—dominating. Brokerage firm UBS estimates that Blinkit holds a 40-45 per cent market share, followed by Swiggy Instamart (20-25 per cent), Zepto (15-20 per cent) and BB Now, which has already captured 10-15 per cent of the market.