BigBasket Set To Become A Fully Fledged Quick Commerce Major: Report

BigBasket, the largest e-grocery delivery platform is set to become a fully-fledged quick commerce major as per an exclusive by the Economic Times.

This is seen as a significant shift in the strategy of the firm since 2011, which has seen the grocery sector proliferate with grocery models, hyper-funded over several cycles in the past few years.

Vipul Parekh, one of the co-founders, told ET that the move will have an impact on the overall profitability of BigBasket as it would blur the lines between e-commerce and quick commerce platforms, with everyone infusing capital and prices starting to drop in other categories.

Despite arriving relatively late in the scene, BigBasket's BB Now is seeing over 50% sales from its quick commerce vertical.

Both of the co-founders Hari Menon and Vipul Parekh reportedly told ET that it will offer a 10-30-minute delivery service confirming the shift.

The makeover which is reportedly set to kick off next month, will see BigBasket achieve as much as $1 billion of its target of $1.5 billion in sales, for this financial year. This was told by people who were aware of the matter to the Economic Times.

The Tata-owned enterprise which has been in operation for about 2.5 years has sharpened its focus on the quick vertical amid a surge in demand and a rush of capital into platforms like Swiggy Instamart, Blinkit and Zepto.

BigBasket previously had plans to reduce its two-hour delivery on supersaver to one hour.

Hari Menon reportedly told ET that by becoming a full-fledged quick commerce platform, the company would cater to its existing users and also keep acquiring new users.

The company is reportedly testing its rapid delivery in several locations in Bengaluru ahead of its rollout across the country.

Menon said that BigBakset is looking to have around 500-600 dark stores while retaining its large warehouses that serve the wide range of SKUs and expensive items on the platform. SKU stands for stock-keeping units.

He said the move is part of a split delivery model where dark stores will carry a wide range of the company's valuable grocery and non-grocery items while retaining large appliances and other expensive products in the warehouses, as per ET.

BigBasket reportedly has 50-60 warehouses across the country.

Hari Menon further said to ET that the company will address the demand for its consumer goods in the country by having multiple dark stores in a cluster, linking one of the warehouses with them and carrying the SKUs accordingly.

BigBasket currently has 10,000 SKUs and aims to attain 25,000-30,000 SKUs eventually. It has 400-450 dark stores.

Quick commerce platforms have been majorly a metro city phenomenon and BigBasket's founders are very well aware of the challenges in widening the offerings. It will be interesting to see how BigBasket does venturing beyond the country's top 11-12 cities.