Hyperlocal Services Industry
Hyperlocal services are ones that are delivered inside a small geographic area and allow
sellers to deliver a product or service in a short amount of time. Delivery of goods and
services is included in hyperlocal services; for example, delivery of goods includes meals,
groceries, pharmaceuticals, furniture, and electronic equipment. Furthermore, several
hyperlocal firms assist consumers with smaller chores such as transporting parcels from one
city area to another. The hyperlocal service model is distinguished by the fact that the whole
supply chain is located relatively close to both the buyer and the seller.
The Global hyperlocal services market was valued at $1,324.2 billion in 2019 and is expected
to grow at a CAGR of 17.9% from 2021 to 2027, to $3,634.3 billion by 2027.
Indian Hyperlocal Startups
Many Indian firms have embraced hyperlocal deliveries with passion, whether it's for food,
groceries, household supplies, or even pharmaceuticals. Here are a few of India's most well-
known hyperlocal delivery and service startups: Dunzo, Swiggy Go, UrbanClap, Zomato, Big
Basket, Grofers, Paytm Mall.
The rise of hyperlocal delivery businesses can be traced back to 2015, when a dramatic
boom occurred, and the hyperlocal market is expected to reach $344 million by 2020. The
surge in late-stage funding (79.59 percent of total funding) in the consumer services
industry was fuelled by late-stage investments in hyperlocal firms.
This segment witnessed a huge amount of investment in recent years, in 2018, $1.7 billion
was invested in the sector, and $533 million was committed until November 2020.
Dunzo
Dunzo is a hyper-local on-demand delivery service in India. It delivers anything and
everything when and where it is needed for the lowest possible delivery fees. Since Dunzo is
positioned as a consumer service platform, it provides a variety of services such as package
delivery, pick-up and drop-off services, grocery or laundry delivery, local couriers, medicine
delivery, meat and fish supply, and online food ordering.
Dunzo is an easy-to-use app. The user creates a task, describing what they want done, and a
delivery executive, referred to by the organisation as a partner, is assigned to it. All of this is
done using a chat interface, and Dunzo customer service is quick to respond.
Easy payment choices, connection with social media, real-time GPS monitoring, OTP
evaluation, cashbacks, and discounts are just a few of Dunzo's features. The target audience
for Dunzo is anyone who use a smartphone.
Dunzo also has partnerships with several restaurants, apparel stores, and general stores.
Bengaluru, Delhi, Noida, Pune, Chennai, Mumbai, and Hyderabad are among the cities
where it currently operates. Dunzo is useful for people who don't want to go out or can't go
out for some reason but still need to buy or deliver something.
The parent firm of Dunzo, is Dunzo Digital Private Limited. It was founded by Kabeer Biswas,
Ankur Agarwal, Dalvir Suri, and Mukund Jha on July 8, 2014, and is registered at
the Registrar of Companies, Bangalore.
Business Model of Dunzo
Dunzo is a mobile app and a website that works together. In the hyper-local sector, it offers
on-demand concierge services. Dunzo operates on a data-driven platform that connects a
delivery person with the user who is closest to them. This person's activity can be followed
during the delivery. Users can also use the chatbox to share relevant photographs of the
specific goods and communicate accordingly when making purchases. Dunzo also accepts
Dunzo cash and other forms of digital payment. Dunzo's platform incorporates Artificial
Intelligence to provide consumers with a satisfying and seamless experience.
Revenue
During FY20, Dunzo reported revenue from operations of $3.7 million (INR 27.5 crores).
In FY19, Dunzo recorded a total income of $483 k (INR 3.5 crores). "Revenue from
operations" accounted for $104 k (INR 76 lakhs), whereas "other income sources"
accounted for $372 k (INR 2.7 crores).
In FY19, Dunzo reported a loss of $23.4 million (INR 169.7 crores), up by 671% from the
previous year's loss of $2.9 million (INR 21.9 crores) (as stated by the documents filed with
the Registrar of Companies).
Fundings
In 15 rounds of investment, Dunzo has raised a total of $140 million. Dunzo raised $40
million in a Series E investment led by Google, LightBox, and others. Dunzo is aiming to tap
investors for another $150 million in 2021.
Figure.1 - Funding history of Dunzo
Competitors
Swiggy Go, Zomato, Big Basket, and Groffers are some of Dunzo's main competitors. It also faces
competition from the companies present in large cities such as Delhi, Pune, and Bengaluru. India's
logistics industry is massive, and fierce rivalry is unavoidable.
Figure.2 - Major competitors of Dunzo and their revenue
Dunzo’s Marketing Strategy
The Dunzo USP is summed up by the company's tagline, "Let's Dunzo it," which simply
indicates that the platform is the final destination for moving anything from one area to
another.
Dunzo has the first mover’s advantage in India. Dunzo became Google's first direct
investment in India because of its strong and sound strategy.
It encounters several obstacles in its marketing efforts. The primary objective of the Dunzo
marketing strategy is to raise awareness of the app's versatility by promoting it through
numerous online and offline channels. However, because Dunzo marketing is now done
online, the platform makes advantage of Dunzo social media profiles to successfully develop
a distinct brand for its users. As a result, their focus is on raising awareness about the app's
multi-utility.
It's worth noting that Dunzo hasn't spent any money on celebrity or influencer
endorsements. In the next two years, Dunzo expects to generate a $1 billion in revenue. All
their expansion and revenue doubling are due to their great marketing strategy and the
value they provide. Let's take a closer look at their marketing plan, which will shortly propel
them to $1 billion in revenue.
Dunzo's marketing style should be labelled as "creativity at its finest." Here are some of
Dunzo's innovative marketing methods for promoting its brand.
Social Media Marketing
Dunzo marketing materials are usually bright and coordinated with the Dunzo logo's primary
green or black colours. On small screens, the brand generates a compelling immersive
environment that instils optimism. Instagram, Twitter, and Facebook are all good places for
Dunzo to be on social media. With the help of its mascots, Harri and Dunya, it tries to share
daily life articles. These characters, clad in Dunzo clothing, depict a Dunzo-thoughts
partner's in everyday situations.
Dunzo branding strives to build brand awareness among its troops. Because they are all
together in these times of difficulty, the purpose is to highlight the activities and unity
amongst the many brands. Dunzo also shared specific employee information and
emphasised the importance of their hard work to keep things running smoothly. The
organisations with whom Dunzo collaborated were also highlighted.
One of the most unique features of Dunzo's social media communication is how they make
content from everyday items. Food is almost usually the theme, which works well because
of the mystery and relatability it provides. People can use the Dunzo app to see these
objects in a new light.
Figure 3 - Social media marketing
Bollywood References
Millennials and Gen-Z love Bollywood. Dunzo capitalises on this enthusiasm for Bollywood
and develops a marketing strategy for it.
To appeal to its filmy audience, the brand employs a variety of speech phrases and
references. They bring a fun aspect to their marketing plan this way. Also, one thing to
consider with this strategy is how the brand links to something that the target audience is
already familiar with.
Figure 4 - Marketing using Bollywood references
Moment Marketing
Moment marketing is a strategy in which a company uses current events or incidents to
create marketing messages or advertisements.
Dunzo is a master of moment marketing. The brand chooses a relevant topic that its
customers are familiar with and creates a marketing message around it.
The brand is adaptable, creating advertising and marketing collateral in response to current
events. Furthermore, Dunzo uses events not just throughout the country but also around
the world to construct its marketing campaigns.
Figure 5 - Example of moment marketing, the campaign was created around covid outbreak
Comic Series
To attract customers, a brand should not just scream its brand name in marketing
campaigns, but it should also provide some value. Furthermore, marketers should provide
consumable material to their audiences. Dunzo understands how to connect with its target
demographic.
Figure 6 - Dunzo's Comic series
Meme Marketing
Meme marketing is a method that the brand uses to entertain the target audience because
it uses social media platforms to advertise itself. Dunzo is quick to adapt to new formats that
become popular on the internet.
Figure 7 - Examples of Marketing done by Dunzo through memes
Hyper-Local Communication
Since Dunzo controls hyperlocal supply, it's critical that the urban places in which Dunzo
offers services are scalable. It accomplished it by enlisting the help of graphic designers and
modifying real-life photos. The USP of Dunzo is to sense the pulse of the city and convey
how it wants to become a part of people's life.
Figure 8 - Example of Hyper-local Communication
Twitter
Dunzo, like every other company that deals with customer care, relies heavily on Twitter.
With two-way communication, Dunzo leverages Twitter to make customers feel heard.
People tend to have more inquiries about deliveries during the lockdown, thus it has
recently become more relevant than before. It also aids in the promotion of available
brands and businesses.
Hashtag Campaigns
Dunzo gets a lot of value out of social media hashtags and generates some fantastic
campaigns with them. The brand produced a wonderful post out of the renowned
#DontRushChallenge in one of its latest postings. Customers are being asked to stay at home
by the brand in this message because their deliveries are expertly scheduled.
Figure 9 - Dunzo's marketing through Twitter and by running Hashtag campaigns
Dunzo’s Advertisement Campaign
The Dunzo advertisements campaign was inspired by a popular Instagrammer known as
'Dude with sign,' who stood in public locations holding signboards with various issues such as
promoting awareness on them. Dunzo marketing strategy was one of the first companies to
employ the format in their marketing. Since then, it has been used in their message on
several occasions.
Figure 10 - Example of promoting awareness through it's advertisement campaign
Dunzo's brand positioning is such that the #90sRedun campaign evokes nostalgia. Dunzo
employs memes to pay homage to great advertisements by remaking them with brand
integration, rewriting taglines with a twist, and repurposing the companies' history to
transport us back to simpler times.
Figure 11 - Example of #90sRedun campaign
Annexure
Figure.1 - Funding history of Dunzo
Figure.2 - Major competitors of Dunzo and their revenue
Figure 3 - Social media marketing
Figure 4 - Marketing using Bollywood references
Figure 5 - Example of moment marketing, the campaign was created around covid outbreak
Figure 6 - Dunzo's Comic series
Figure 7 - Examples of Marketing done by Dunzo through memes
Figure 8 - Example of Hyper-local Communication
Figure 9 - Dunzo's marketing through Twitter and by running Hashtag campaigns
Figure 10 - Example of promoting awareness through it's advertisement campaign
Figure 11 - Example of #90sRedun campaign
