Dunzo Business Model & Marketing Strategy – A Pathway To Riches

Dunzo-Business model

“Dunzo it!”

That’s the common refrain if someone asks “Where can I get it?”

Dunzo is a name that Indian millennials relate to instantly. For anything and everything that has to be delivered from point ‘A’ in a city to point ‘B,’ just Dunzo it!

Today, Dunzo has become a household name in BengaluruDelhiMumbaiPuneChennaiHyderabad, and Jaipur.

What is Dunzo?

Dunzo is a hyper-local on-demand multi delivery service app.

Dunzo can change the way you move things, how you shop and lets you access your city like never before. It is an app that connects you to the nearest delivery partner who can make purchases, pick up items from any store or restaurant in the city and bring them to you.

It’s never easy to make purchases or drop off packages when you get busy with work, get stuck in traffic, or you might even end up forgetting about it completely.

All you need to do is, Tell Dunzo where to go, what needs to be done and when.

By charging a small delivery fee, Dunzo delivers anything and everything to its users.

The Idea Of Dunzo – The Story Behind

It all started one afternoon in 2015 at a restaurant in Bengaluru. Kabeer Biswas who had completed his earlier startup Hoppr’s transition to Hike, was in the city.

He thought how nice it would be “if there was someone who could complete your list of tasks for you – just tell someone what you need finished and it is done.

That thought let to the first version of Dunzo, a WhatsApp service.

Dunzo soon began completing tasks for its users. it started with a small set, but the user base grew. By the end of 2016, the startup was getting over 500 orders a day.

Business Model Of Dunzo

Dunzo Business Model : Revenue Stream

Dunzo has diversified its revenue stream into five significant streams.

  1. Commission Rate– Dunzo charges a specific commission from the
  2. partner store per order; this commission rate can vary from 15% to 30%.
  3. Delivery Charge– Delivery charges range from Rs. 10 to Rs. 60 depending on the distance and the order value.
  4. Surge pricing/ Demand pricing– If the demand in an area increases suddenly, then surge pricing is applied for that area.
  5. Service– Repairs, home service, etc.
  6. Miscellaneous Category– In the words of Biswas, founder of Dunzo, this is called #kuchbhi request. The charge of these categories is decided on the task description. Here is some example of #kuchbhi request:
    1. Take a 20-second video of my house under construction, to ensure the work is going well.
    2. Take a picture of my daughter’s school project.
    3. Get me my jacket from home.

Dunzo Business Model : Customer Segment

Being in a Hyper-Local Delivery (HLD) Business Dunzo leverages a huge Target Segment. An ideal customer for Dunzo can range from a 65-year older man looking to get his medicine delivered on time to a 12-year old schoolboy who wants to get his friend’s homework notebook.

 

Dunzo Business Model : USP

“Owning our logistics and supply chain was the turnaround for us,” says Mukund Jha. Unlike other on-demand delivery platforms, Dunzo owns the delivery layer wholly.

While most of the competitors get a bunch of vendors and merchants on the platform and then ask their customers to find a way around the services, Dunzo owns the full responsibility to deliver the order on the customer’s doorstep.

Dunzo’s Business model is very agile and quickly evolves to changes when they see a large portion of customers is repeatedly assigning the same task; they launched a ‘repeat-task’ button.

Also Read – Rappi Super App | Breaking New Barriers | 10 Minute Delivery

 

How Does Dunzo Generate Revenue?

 

1. Delivery fee – Dunzo charges a small fee for each delivery it completes. The delivery charge can be anywhere Rs. 10 to Rs. 60 depending the total value of the order to be delivered and the distance to be covered.

2. Commissions – Per order received, Dunzo charges a commission rate, ranging from 15 percent to 30 percent, from the tie up vendors.

3. Services offered – Home services, repair tasks etc.

4. Surge pricing – Dunzo generates its revenue from surge price as well. When there is a spike in demand, the price increases as per the increased demands.

Dunzo’s Marketing Strategies

In its commercial campaigns, it faces many obstacles. The key goal of Dunzo is to spread knowledge about the multi-usefulness of  the app by promoting through using various means that can be online or offline. But since marketing is done online these days most of the times, Dunzo uses it online platform successfully by creating identity unique to its consumers.

Startups aspire for Dunzo marketing posts

References from Bollywood

To draw people’s interest, Dunzo uses phrases and dialogs from Bollywood. The everyday notifications are typically interwoven with powerful songs or film titles.

Dunzo uses Bollywood References

Meme Marketing

In Memes and Ads, Dunzo is an influential trend-follower. Dunzo easily adapts to the Internet and it’s new meme based posts for marketing becomes trending.

Dunzo Business Model
Dunzo Meme Marketing

Social Media Marketing

Dunzo’s material is often vivid and coordinated with the key green or black colors of the logo.  The brand creates a strong immersive environment, which instills optimism on small screens. As for social media involvement, Instagram, Twitter and Facebook works well for Dunzo. It strive to spread daily life post’s with the aid of their mascots, Harri and Dunya. These characters, dressed in Dunzo gears, represent the thoughts of a Dunzo-partner in daily circumstances.

Dunzo to commence operation in Chennai, after Hyderabad
The app-based delivery service Dunzo is all set to enter Chennai. The platformstarted its operation in Hyderabad last month. Dunzo allows users to create a list of tasks for pickup and delivery. Thisdelivery service allows users to create a list of tasks for pick up and drop offwherever they lik…
Dunzo marketing strategy
Dunzo commences operation in Chennai

Dunzo has concentrated on creating brand communication around its troops. The goal is to illustrate the operations and unity between the various brands because in this time of crisis, they are all together. Dunzo also share’s individual employee information and stressed their hard work to keep things going. The organizations in which Dunzo had collaborators were also communicated.

Dunzo revenue model
Dunzo Social Media Marketing

Hyper-Local Communication

As Dunzo manages hyperlocal supplies, it is important that the urban spaces for which Dunzo provides services are expandable. It did so by using graphic designers as well as by manipulating  real life images. The brand aims to catch the pulse of the city and describes how it wants to make a part of people’s lives.

Waht is Dunzo
Dunzo Hyper-Local Communication

Twitter

Like any other brand that deals with customer service, Twitter is key to Dunzo. This is where they make customers feel heard with two-way communication. Recently, it has become more relevant than before as people tend to have more questions about deliveries during the lockdown. It is also helping them highlight available brands and operations

Content in the Mundane

One of the interesting aspects of Dunzo’s social media communication is how they create content out of mundane objects. These are almost always themed around food, something that works well because of the intrigue and relatability factors. Dunzo help people look at these objects in a new light.

Dunzo Business Strategy
Dunzo’s Content in Mundane

Campaigns and Consistency

  • Dunzo got its inspiration from a famous Instagrammer ‘Dude with sign’ who stood in public places with sign board that had various topics  like spreading awareness spoken about. Dunzo was among the first set of brands to have used the format in their communication. Since then, it is something that has been consistently used in their communication multiple times.
Dunzo hyperlocal delivery
Dunzo’s Woman Empowerment Campaign
  • Dunzo delivers nostalgia with the #90sRedun campaign. Dunzo pays a tribute to these iconic commercials by redoing them with brand integration, rewriting taglines with a twist, and utilizing these brands’ legacy to pull us back into simpler times.
dunzo app
Dunzo 90’s Campaign

Dunzo Funding

Recently, Dunzo raised $28 million as part of its ongoing Series E funding round led by Googleand LGT Lightstone. The hyperlocal delivery app has a customer retention rate of 80 percent, and completes each task within 20 to 25 minutes, with an average basket size of Rs 500.

“At some point in the future, we might deliver orders in five minutes. I don’t know what the tech for it might look like. It might be drones, for homes might change and have tubing tech in them… I want to live in the future,” Kabeer claims.


If you have an idea; somethign unique or even on the lines of the Dunzo business model and you want to make it a reality, talk to us. We have helped hundreds of entrepreneurs and startups with their technology part of the business. We will help make you a success too.


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