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Considering that the average order value (AOV) in quick commerce is lower than in slotted delivery, Menon said that the blended average order value at BigBasket will still be higher.
Tata-owned e-grocer BigBasket has shifted its focus to quick commerce, making 10-minute delivery the default option on its platform. The company has merged its Super Saver (slotted delivery) and BB Now (quick commerce) services into a single interface, offering customers a seamless shopping experience.
Hari Menon, chief executive officer and co-founder of BigBasket, stated, “We’re not eliminating slotted delivery, but making quick commerce the default option. This change reflects our commitment to rapid delivery and customer convenience.”
The shift to quick commerce holds significant implications for the ongoing market share battle among quick commerce and traditional e-commerce players. With this move, BigBasket now brings its over 30,000 SKUs to the quick commerce segment.
This is much higher than Blinkit’s 25,000 SKUs and Zepto’s 10,000 SKUs. Zepto has stated that it intends to increase SKUs on its platform to 20,000 before the festive season begins.
With this vast expansion of offerings in the quick commerce category, BigBasket is also increasing its dark store presence. “We are expanding our dark stores presence too. In the first phase, it will be an addition of 600-700 stores, up from the current 400. We will be adding more eventually,” said Menon.
Considering that the average order value (AOV) in quick commerce is lower than in slotted delivery, Menon said that the blended average order value at BigBasket will still be higher.
“Our AOV will be a blended average value that will include both quick commerce and the large assortment. Our slotted category AOV is around Rs 1,300-1,400 per order, and the AOV for quick commerce is running upwards of Rs 500. So we expect the blended order value to be above Rs 1,000,” added Menon.
When asked if the reason for expanding into quick commerce was the rising competition from players like Blinkit, Instamart, Zepto, and now Flipkart, Menon disagreed.
“Quick commerce as a segment is growing fast and is expanding beyond just grocery. That is what we are seeing. We still have customers who prefer slotted delivery, and they tend to only opt for that. This is just a convenience factor for our customers, which we do not want to let go,” he said.
Menon also mentioned that BigBasket has expanded the categories of products it offers. In addition to the usual categories, it now also offers segments like toys, stationery, electronics and accessories, over-the-counter medicines, and more.
First Published: Aug 27 2024 | 6:53 PM IST