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At around $350 billion, India is in the top grocery markets of the world.  This is approximately 70% of the Indian retail business which is around $500 billion. Modern retail accounts for 10 - 20% of this pie.  E-commerce or hyperlocals are obviously a tiny part of the pie just yet. Most companies, therefore, are still at a stage where they have to prove their business models and change consumer behaviour. These type of businesses are expected to reach around 2% of the grocery market by 2020, creating a potential market size of around $10 billion (Rs 60,000 crore). The hyperlocal on demand grocery has mainly two models - a) A large player like Big Basket offering localised services. Inventory is carried by the company. b) An aggregator using the local retailers to source products and handling the delivery c) An aggregator using local retailers to stock and deliver It is a no-brainer that an aggregation model, as it is asset-light, is les...

The 'hot' business till a year ago is seemingly ' hot to handle' now. There is a pervading sense of fear exacerbated by the closure some famous start ups in food delivery business. However, the naysayers will not question the potential in food delivery- The organised food business in India is worth $48 billion, or Rs 3 lakh crore, of which food delivery is valued at $15 billion (Rs 94,755 crore). In developed nations, takeaway and home delivery contributes to about 35% of the food business. In India only about 10% of the orders are for takeaway and home delivery. Furthermore, 80% of the orders are made through phone calls.  Eateries like Dominos, Pizza Hut etc. alone get 50-60% of their sales through eCommerce.  At last count there were around 120 start ups in this space, all jostling for the same customer in the same areas.  Given the low entry barriers and healthy wallets of investors start ups have mushroomed. That is reason enough to ...