Delivery startup BigBasket tests grocery group buying in Tier IV towns

• ByTejika Bajaj     |    January 10, 2022

Tata backed delivery startup BigBasket has recently started testing out its group buying model for grocery deliveries in Tier IV cities. This move comes at a time when multiple giants and new players have entered the market and increased the market penetration ratio.

The experiment is being conducted since BigBasket intends to expand beyond the metro cities and into small towns. Survey reveals that Tier III and Tier IV cities are a major contributor to delivery sales in other countries and drive major revenue for the same.

“There is not going to be a one-model player (in grocery),” said Arpit Mathur, partner at consulting firm Kearney, when asked about BigBasket’s latest experiment. “Everyone looks at China as a developed online grocery market. There, online grocery comprises 15-20% of overall grocery retail. That itself has four or five different models. BigBasket is an out-and-out grocery player. They would want to have an offering for all types of buyers.”

With this, the Tata backed startup would be joining the list of growing e-commerce firms like Walmart owned Flipkart, Meesho and Udaan, who in the past have been making strides in their product offerings to widen their consumer base and serve various value conscious consumers.

BigBasket also intends to foray into the quick commerce segment which will play an integral role in Tata Digital’s ‘super app’ plan. Sources close to the development have revealed that the delivery startup will be launching an express delivery service by the name of BB Now in the coming days.

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