Even as reports had suggested that Big Basket was looking to pivot to a full quick commerce operation, it seems to be trimming its presence in smaller markets.
Tata Group-owned Big Basket has told customers that it’s stopping its operations in Jaipur. Big Basket said that the last day of its operations in the Pink City would be 5th September. Customers were told that Big Basket would not be accepting any orders post 5th September, and were advised to use any remaining wallet balances before that date.
“Dear bigbasketeer, I am writing to you today to share some difficult news. After much deliberation, we have decided to suspend our services in Jaipur, effective from September 5th, 2024,” the company wrote in an email to Jaipur-based customers. “For 8+ years, we’ve had the privilege of serving the wonderful people of Jaipur. We are grateful for the trust you placed in us to bring fresh groceries and daily essentials to your doorstep,” it added.
Big Basket blamed the “ever-changing nature of the industry” for the termination of its Jaipur operations. “As we adapt to the ever-changing nature of our industry, we sometimes face challenges that require us to make tough choices. In this instance, we believe that pausing our operations in Jaipur is the right step at this time,” the mail said.
“We remain hopeful that, under the right circumstances, we may be able to resume our services in Jaipur in the future. Our commitment to you and to the city remains strong, and we will continue to explore every possible avenue to make this happen,” the mail concluded.
Big Basket’s retreat from Jaipur comes at a time when it has been reported that the company is looking to pivot from its delivery slots model to the 10-minute delivery model pioneered by Zepto and Blinkit. Thus far, Big Basket had been running two verticals: its regular deliveries, which took several hours and offered cheaper prices, and BB Now, which delivered in 10-20 minutes. Big Basket had said it was pivoting fully to its 10-minute vertical BB Now, and its app had begun showing only the instant delivery option, much like with Zepto and Blinkit. BB Now was accounting for around 50 percent of Big Basket’s overall sales when the decision was made.
But it appears that this restructuring means that Big Basket will no longer serve smaller cities which might not have the density of demand to make 10-minute deliveries feasible — 10-minute deliveries work best in metros where a single dark store can serve neighbouring areas and high-rises. In more spread out cities like Jaipur, each dark store can reach a fewer number of people in 10 minutes, making the business model less viable. Interestingly, when Blinkit had first pivoted to exclusively offering 10-minute deliveries, it too had shut down dark stores in areas where it determined it couldn’t meet the 10-minute delivery promise.
This shakeup, though, could impact how grocery delivery operates in smaller cities. Jaipur didn’t have the services of Zepto, and will no longer have the services of Big Basket. Even as grocery companies are doubling down on quick commerce, the push might end up negatively affecting areas where the business model can’t be effectively deployed.