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Jugnoo to focus on Tier II cities for hyperlocal delivery business

On-demand autorickshaw aggregator Jugnoo has restarted its hyperlocal delivery business by re-launching its 'Fatafat' service. Starting its operations in Chandigarh, the delivery service will be launched in Gurgaon and the NCR region in June. Chinmay Aggarwal, the co-founder of Jugnoo, told Medianama over a telephonic conversation that the company will be focusing only on Tier II cities and not metros, as Tier II & III cities have unlimited scope and potential in this area. He added that Jugnoo will expand the business to 15 cities in the next three months. The service is currently restricted to delivering vegetables and fruits through the company's network of autorickshaws, with a few auxiliary items like dry fruits and frozen products. The company buys the products from the mandis (local vegetable markets) in the morning and stores it in its warehouses, which is then be delivered by the autorickshaw drivers. Jugnoo first started the Fatafat service in March last year and continued it for about eight months. The service was then used to deliver orders for products such as grocery from stores within the city. Jugnoo claimed that it had 200,000 registered users with Fatafat and it was carrying out 1,000 orders daily across 4 cities then. Aggarwal said that the service was withdrawn for multiple reasons but did not cite them. He added that Jugnoo now has a higher density of autorickshaws and will be able to handle the demand better as it has streamlined the process. Jugnoo has also acquired ‘SabKuchFresh’ to augment procurement and logistics functions of fresh fruits and vegetables,…

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