Milkbasket - Business Model

Milkbasket is a hyperlocal e-commerce company that believes in an inventory-based model where it

sources its products directly from brands. Milkbasket co-founder Anant Goel believes that his company
has developed a contactless hyper-local grocery delivery model. Customers can place orders before
midnight and have them shipped by 7 a.m., according to Milkbasket.

The e-grocery delivery startup doesn't need checkout or payment because the purchase is prepaid with
the help of a mobile wallet that is on the app. Therefore, the users can simply top it up whenever they
run out of funds. Milkbasket earns from its delivery charges, subscriptions, and commissions from each
transaction.

Milkbasket - Revenue and Growth

Milkbasket, a hyperlocal distribution startup based in Gurugram, announced a 3.8X increase in revenue
in 2020, which ended in March last year, with only a small increase in losses. In 2020, the company
reported revenue of INR 322 crore, of which 99.9% (INR 321.7 crore) came from operations.

In 2020, the hyperlocal startup's expenses rose at the same pace, to INR 337.7 Cr, bringing its losses to
INR 15.7 Cr. In 2019, the company posted revenue of INR 84.6 Cr and expenses of INR 94.1 Cr, resulting
in a loss of INR 9.5 Cr. Over the same time frame, it received around 99.7% (INR 84.4 Cr) from its
operations.

Milkbasket is based on the habit of people residing in India, of having milk delivered to one's doorstep
every morning, and the company only delivers during one delivery slot, from 5 a.m. to 7 a.m. By
October 2017 they had delivered around 1.5 million orders and employed around 200 people.

Milkbasket had earlier displayed an annual sales run rate of around USD 100 million, delivering over
9,000 items across FMCG, dairy, fruits, and vegetable categories in Indian cities including Hyderabad,
Dwarka, Delhi, Bengaluru, Ghaziabad, Gurgaon, and Noida).

MbBulk and senior citizens-only helplines were also introduced in several cities to help people stay on
lockdown without having to go out for groceries and dairy products. Within the first six months of its
launch, Milkbasket successfully shipped around 30 million orders and achieved positive unit
economics.

The company has been in high demand since the lockdown began, as demand for hyperlocal grocery
delivery has increased dramatically. During the lockdown, many companies with a logistics and
distribution backbone, such as Swiggy and Zomato, switched to grocery delivery as these were the only
essentials in demand across the board.
 Reliance JIO

The Reliance business model is run and owned by Mukesh Ambani. The Jio business model is specified
that giving free services to the customers will benefit them with more money as compared to the current
other networks as charge prices, Jio provides free voice calls to customers.

Is Jio business model sustainable?

According to my point of view, yes Reliance Jio will be a sustainable business model in a

country like India. Reliance jio, the great telecom industry is leaving a great impact in today's
era. Within 1 month of launching jio, it got 500 million subscribers.

Its business model is very simple, yet unique. The most unique thing about Jio is it offers free voice calls
to its customers. According to statistics, only 10-15% of the Jio 4G network is used for calling while the
other 85-90% is used for data.

ZARA
What is different about Zara's business model?

"That they are agile and flexible really comes down to their business model," he wrote, adding
that "Zara uses a push based model which means factories push out product to stores which is
then sold to consumers; there is no customization or products being made to order.

What are the key components of Zara's business model?

The company created innovative manufacturing process allowing quickly responding and selling
clothes to its stores. Zara controls key components of its supply chain: designing, manufacturing,
distribution, and retailing.

What is Zara model?

Zara is mainly based on a concept called fast fashion. It is similar to the idea of FMCG i.e., Fast
moving Consumer Goods. Fast fashion is used to target an audience which majorly comprises
young adults and middle-aged people. The cycle of fast fashion ends early as the fabric of the
cloth withers.