I disagree when paytm was market leader and had USP OF MOBILE WALLET WHICH LED TO PAYTM LOSE OUT TO UPI AND WAS TOPPLED PHONEPE AND GOOGLE PAY and still paytm had work very hard to stay in competition
I guess it was bound to happen.. I was both a consumer and a contributor (through invoice discounting) but in my area, most items they sold were consistently nearing the expiry date and their customer service was virtually non-responsive. On a separate note, last year when I asked them to delete my account/details from their database and provide a confirmation they completely went silent. Despite my numerous attempts to contact them, I never received a reply. For me that was the last time I ever used their service.
when a company fails, you can write an hypothesis for it's failure, to fit the narrative. Dunzo failed while trying new things: people are sayin: Duzno should have focused on it's core offering. If Dunzo would've failed, while just focusing on hyperlocal delivery, same youtuber would've said: Dunzo didn't evolve. If Dunzo would've succeeded in quick commerce, same youtuber would've made a video about the genius idea of Dunzo to continuously evolve. Point is that very easy to write a back story AFTER knowing the result. Zomato, Swiggy are growing while introducing new categories, the same theory doesn't hold true for them.
@@crazystories221 Reasons can be multiple. we outsiders can only speculate. The most prominent seems to be lack of funding: Zomato/Swiggy kept on expanding, got funding and are thriving. Dunzo couldn't get funding and is thus struggling.
My opinion is that there is nothing wrong in venturing in new arena, but if you fail to prepare you prepare for failure. In this scenario they did noy understand the depth and need of the new arena and blindly invested to be first in the race which eventually killed the business.
Reliance is killing the startup ecosystem. Its not a coincidence when Reliance takes over the major stake in the company, the company's downfall starts. We should see the Milkbasket's case study as well, where the founders had to leave and all top management got fired.
@@mdashher114 not saying that, should have tried more to get some VC rather than Reliance. Wish there could be detailed videos on how Reliance kills startups, thats really scary.
Not a single delivery app is making money. I am trying to make sense of the business model. If an average product delivered costs 200 Rs, the delivery margin cannot be more than 20rs. Avg delivery distance can be 4-5 km. How are you paying for the driver, his vehicle petrol etc. You could break even at may be putting in a min purchase of say 1000 Rs. I am not sure many such apps can work with such restrictions. The whole ecosystem seems like big bubble waiting to burst. You may have loyal consumers and data, but how can that make up for 1000s of crores loss
bcos they are start ups competing for market share/ monopoly for new "market" they entered. they will make profits once whole potential markets are covered and gets saturated. now its all about growing.
It's a humble request to not use terms such as "committing suicide" for companies that have failed to gain profits. Even irresponsible media outlets have stopped using the term, it is quite tone deaf and a company is not a human being who chooses to die by suicide. I am sure there are other hyperbolic terms you can use.
Just a correction it is not that employees are not receiving salary from last 6 months. It is just that some part of June and July complete are remaining. Rest all months are in track. I have a friend who works there
They started grocery delivery business then shut it down then again started with hyper local model where they were delivering products from local kiranas at price much higher than there competitors, then again they started grocery delivery by themselves. Multiple pivots within short period. Other businesses kept on working on same idea for 10+ years stable it then move to other businesses eg Zomato
issues with not researching well on a topic. The reason they had to change their usp was that their usp wasn’t working anymore. People realised that dark store model was way better than hyper local and started shifting there
I don't know when people will realize that aggregrator business will not work because you have no control over your the so called "partners." The problem with these startups are that the founders would have setup a detailed plan to exit as soon as they find a buyer. Making the company profitable and running it is never the strategy. They over hire highly paid engineers and CVD level titles. Founders take huge remuneration despite the company being in loss.
2 million orders per day is a wrong fact. The highest daily order for swiggy was 2 million. It does 1.2-1.5 million generally. Can’t think of dunzo getting more orders than Swiggy with smaller distribution and presence.
It's a classic shark strategy from reliance, Mukesh Ambani plans for the future. Buy a minority stake with veto rights at a high valuation during a time of crisis in a company, make sure it falls and then bail out the company and buy a majority stake at a much cheaper valuation/ let it die and bail out. Reliance retail is his next Jio project till his foundation for RE is laid out.
They took a swanky office in a good location and added fully furnished matching MNC level spending lot of money even before earning 1 rupees profit . Bad money management.
Yup. Everyone wants an office like Apple or Google but have less than a fraction of a % the resources. Burning cash on stupid things is not good business.
Basically they did not have any business model from the start. Founders must understand that there is a diff between doing business and doing marketing. Business is all about profits, rest all is just marketing!
Dunzo has not made payments to merchants/vendors in huge numbers in Chennai. Around one month payment is pending to stores in Chennai from September 23. One by one stores are swithching off in Chennai. No response from their staff as most have left Dunzo. No proper response. They have taken money from customers for the item and the delivery charges. They have received the item from store owners and not paid for the item delivered to the customers. Store owners are affected by this. Hopefully, all the pending payments will be paid
Mota bhai invested in dunzo to buy dunzo. Reliance bought 25% stake but they will end up getting more than 60% stake in few months with cost less than that of 25% they invested initially.
Great video! Your narration style is engaging. Consider breaking down terms like "dark store" and delving deeper into their workings(trust me a lot of people don’t know how it works). Exploring topics such as USP (Unique Selling Proposition) and its significance in startups would add valuable insights for your audience. Keep up the good work!
I was in Dunzo’s growth marketing team and had left the company in early 2023. I’ve seen the massive downfall, the condition of the employees were unbearable
Superior content quality, only regret I have is most Indians will be oblivious about this companies with worst business model, worst job security and short life because of language problem 90% of Indians don't click on English language videos(that simple)
It looks amazing in early days like how Kabeer and his friends were So Confident and Energetic. But I feel bad how young entrepreneurs fail and how they feel in current situation. It's too depressing.
I humbly disagree with your point/lesson no. 2 that "You should first be operationally profitable in your core business". An example of this is Amazon. Amazon is what it is today because of its services such as Amazon Prime and AWS and not its E-Commerce market business. Sometimes you have to venture out and try out other things if the hand you've been dealt with is not the right hand. 😇
Prime was for Amazon's product delivery from the beginning. The rest got added as it's capabilities grew - aws itself started as a means to monetize rarely used computing power that Amazon gained because of its e-commerce business.
Trust me, Reliance saved them, they just kept burning cash and as a premium member of Dunzo, I didn't even knew they moved into the other segment until I watched this video. 10 years later, these guys will thank Reliance
The biggest problem with the current startup ecosystem is instead of creating a value they are desperate to create a Buzz about their product. That is where their businesses fail. The first and foremost thing any business should do in order to last longer is to create value and then go for valuation.
I really do not understand difference between Hyper local delivery vs quick commerece ? even though there might be negligable difference itself. I think going to Quick commerece is not a bad decision. Some one if know clear cut difference between them. Please feel free to. thank you
Hyper local is using existing shops (existing infra) to fulfill orders. Here, customer chooses the cheapest provider, quick commerce is time-based, within 10min/30min that type
Hyper local delivery means u tie up with kiranas or retailers and when a customer places a order on the app u just deliver it to customer meanwhile u don't hold any inventory. Inventory is held by kirana or retailer and u earn comission on every order delivered meanwhile u bear the delivery cost apart from this u earn ad income many brands would want to do advertisement with u bcoz customers are coming on ur platform. In USA instacart is such model . Here in india dunzo . Meanwhile In quick commerce there are 2 type of model .one in which u open the dark store ( area where common people arent allowed area where sku are maintained just like a store room where only staff is allowed ) and u hold the inventory which is mostly within 3 km range and u deliver the order by urself and u don't pay any comission and u have ur margins just like dmart . U earn when u sell a product u do make ad income bcoz customers are coming on ur platform. Example zepto .. The second model in qcom is where u ask sellers to sell on the platform just like Amazon and sellers will hold the inventory u just open dark store near customer within 3 km range and u help sellers with inventory management and u earn comission whenever order is delivered meanwhile u bare the delivery cost . U do make ad income . Example blinkit .
Here's the mistakes summed up :- 1. Do not loose your USP. 2. Firstly prioritise achieving constant profitability before expanding the business into new avenues that fundamentally require more cash burn initially since your probably won't be able to survive that time period.
I used Dunzo service once in Bangalore to send an ID card, 15 kms (max) they charged me close to 270 or 280, never I used their service again. They could work on optimising the delivery cost.
Biggest learning : Never ever make an agreement with the devil. Either today or tomorrow you will end up handing over your soul to the devil. It does not matter how much you raise the question is from whom you raise the money.
All these companies think you press 1 click in app and everything happens. These founders forget there is humans involved in the process. They do your deliveries so treat them as people and not bots. They face poor conditions to make your business run
dunzo failed because they provided refund . even person gets order and raise the ticket for expired date and others they provided refund without any verifications
The real reason I smartphone Before jio there was no cheap Internet And smartphone are not widely used This is the biggest reason And smartphone technology was not developed either
What's the breakdown of Dunzo's expenses? * They don't own the vehicle * Delivery partner costs are one of the lowest in the world * Fuel costs are high in India but not that high that the entire business model is brought down to its knees * Backend and software overheads also cannot be the reason. * They don't have any plant and machinery to run or maintain. So why were they losing ₹8 on every ₹1 they were making?
@@Oceansta I wouldn't be surprised if it is. The network of delivery partners is what makes dunzo. Just like the Uber driver network is what makes uber.
