Dunzo4Business, the logistics arm of Dunzo supported by Reliance Retail, has revealed its strategic plan for expansion. A senior company official has stated that they are aiming to extend their business operations to 10-15 cities over the next 12-18 months.
According to Dalvir Suri, the Co-Founder of Dunzo and head of Dunzo4Business (D4B), the logistics aggregator firm is actively collaborating with the government-supported Open Network for Digital Commerce (ONDC). Their joint efforts are focused on addressing the intracity last mile delivery needs of a wide range of products.
“In a year’s time or 18 months’ time, along with ONDC and my b2b logistics business, we do see ourselves entering into 10 to 15 new cities,” Suri said.
He said that at present, D4B has a presence in about 10 cities.
Around a year ago, the company became a part of the ONDC platform. Currently, they assert that they are fulfilling 60-70% of the overall orders received on the platform for last mile delivery. Additionally, they handle orders received through Dunzo for the delivery of groceries and other items from various merchants.
“Bangalore, Delhi, Hyderabad, and Chennai are four cities where they (ONDC users) are putting most of the orders. They are scaling the network as we speak, and we are pretty much present in all the cities with them. For us, it adds a new revenue channel to run more orders on the network; this means more efficiency in bringing down the cost,” Suri said.
In terms of revenue, Dalvir Suri mentioned that D4B has achieved positive unit economics. Looking ahead, the company will concentrate on scaling up its business operations over the next 12-18 months.
Currently, the company collaborates with a network of over 70,000 delivery partners spanning across 10 cities.
According to Suri, the top categories that people order through Dunzo4Business include grocery, food, and pharmaceutical products. The average order ticket size ranges from INR 200 to INR 4,000.
Furthermore, he emphasized that the company aims to facilitate the delivery of all products that can be transported via two-wheelers.
