MilkBasket is an Indian online grocery service that has become popular with a unique approach to the delivery business of groceries. The company was founded in 2015 and since then has adapted its business model to meet the needs of customers for everyday grocery needs in a number of Indian cities. We are going to look at the Milkbasket business model, its main components, and how it has posed a challenge for conventional grocery stores.
Customer-Centric Approach
The customer-centric approach of Milkbasket is one of its defining characteristics. Milkbasket does not offer weekly or biweekly delivery schedules, in contrast to the usual supermarkets and similar online grocery delivery services that deliver on a daily basis. That means that customers will be able to order essential food and dairy products on a regular basis, giving them the possibility of bringing fresh goods onto their doorsteps every morning.
Components of Milk Basket’s Business Model
Daily deliveries: customers can purchase products such as milk, fruits, vegetables, bread, and other basic food items on a regular basis through Milkbasket’s delivery model. This will meet the needs of households in their daily lives and make it an attractive option for urban consumers.
Product Assortment: the company’s focus is on delivering a curated selection of essential items, such as groceries, dairy products, and household essentials. In order to guarantee a fast and efficient delivery process, Milkbasket limits its product range to essential products.
Subscription model: Milkbasket offers customers a monthly subscription plan that enables them to pay regularly for their deliveries. A revenue predictability that encourages customer loyalty is provided by this model. As a part of the subscription, users may be given discounts or other benefits.
Mobile App: Milkbasket’s mobile application, which is available on both Android and iOS platforms, is the primary method of operation. The app makes it easier for customers to browse products, place orders and manage subscription accounts through an intuitive user interface.
A robust delivery network, including a fleet of delivery personnel, has been established by the company. In order to support their sustainability efforts, they often employ electric vehicles for eco-friendly deliveries.
Early morning deliveries: Milkbasket specializes in delivery before dawn, so that customers have their orders by the time they wake up. That’s how it differentiated itself from the rest of the market because it was tailored for morning household routines in India.
No-Minimum Order Value: Milkbasket does not have a minimum order value requirement, allowing customers to place small orders without any constraints. This flexibility is enjoyed by a large number of customers, from individuals to families.
Milkbasket has many revenue streams:
Milkbasket, like other supermarket delivery services, adds a profit margin to the items it offers. This profit margin guarantees that all of our operating expenses are covered.
Each order placed by a customer incurs a delivery cost. The size of the order, shipping address, and kind of membership may all affect the final price.
Milkbasket generates a sizable portion of its income through subscription fees. Customers who want to get delivery every day must pay a monthly or yearly subscription fee.
Brands and manufacturers frequently pay to promote and advertise within the Milkbasket app, which generates additional money.
Monetizing Data: Milkbasket’s consumer data is anonymized and pooled for the benefit of manufacturers and brands. This information can be sold as a service to generate revenue.
An Edge Over the Competition
Several aspects of Milk Basket’s business model offer it an edge in the online grocery delivery market:
Deliveries are made on a daily basis, distinguishing this model from others that only ship once a week or less often.
Customers are more likely to remain loyal to a business that offers them access on a subscription basis.
Breakfast is a highly important meal in India, therefore it’s no surprise that the delivery window opens early in the morning.
Milkbasket’s willingness to accommodate its customers’ needs by not requiring a minimum order amount is a selling point.
The organization has established a reliable supply chain that helps to reduce waste and maintain product quality.
Challenges and Future Outlook
Milkbasket has come a long way, but it still must overcome obstacles in an ever-changing and competitive industry. The company faces problems such as rising rivalry from well-funded rivals and the ongoing requirement to broaden its distribution network to include new cities.
The growth of the online grocery delivery business in India bodes well for Milkbasket’s future. With its emphasis on necessities, novel delivery methods, and customer-centric attitude, the firm is well-positioned to increase its market share.
In conclusion, Milkbasket’s core offering is a subscription-based, mobile-first platform for delivering daily grocery essentials. Its novel business model has shaken up the established grocery store industry in India, resulting in a dedicated consumer base. To stay ahead of the competition and fulfill the changing demands of Indian customers, Milkbasket will have to change and adapt as the market does.
