Jugnoo claims that it is now delivering 2,000 orders daily, up 300% from the 500 orders it was doing previously, using an internal software called FlightMap to optimise its delivery routes. The company currently counts Foodpanda, Burger King, Pizza Hut, Subway, Baskin Robbins, Pick My Laundry, Ferns N Petals and local chemists, stationery and gift shops as clients.
Focus on delivery services
Last month, the company launched a grocery delivery service called Grocery in Chandigarh in tie ups with local wholesalers. Grocery was introduced after Jugnoo launched a fruits and vegetables delivery service called Fresh. The autorickshaw aggregator also has plans to launch a store called Express next month from where it will deliver groceries in 2 hours. Jugnoo recently started accepting web bookings and in August, it started making food deliveries via its Fatafat app in Chandigarh, Panchkula and Mohali. The company’s founder and CEO Samar Singla said that the unit economics for its grocery delivery have been profitable from the get go.
In June, Jugnoo launched its on-demand B2B logistics service Dodo deliveries in Chandigarh tricity, and claimed that Dodo was doing 200 deliveries daily. In April, the company raised $10 million in series B funding led by Paytm, Snow Leopard and Rocketship.vc.
Grocery delivery hasn’t had a good year this year
The online grocery delivery space currently does not have many players: it is presently dominated with Grofers and BigBasket. However, even these players are struggling. In June, Grofers had to lay off 10% of its workforce citing general slowdown in activity in the industry and 6 months before that, it shut down services in 9 cities, despite raising $120 million in funding last November.
BigBasket, on the other hand, considered selling products from its platforms to 1,000 kirana stores, hotels and restaurants, because the margin in B2B sales was thinner as compared to the 20-23% for B2C sales. In March this year, BigBasket raised $150 million in funding to expand its one-hour express delivery service and launch a marketplace for speciality stores.
At the start of this year, Ola and Flipkart shut down their respective food and grocery delivery services. Likewise, online grocery delivery service PepperTap, which raised $51.2 million in funding since inception, shut down.