Team Name: Bridgeops

College Name: Indian School of Business Hyderabad

Hyperlocal last mile delivery solution
Express Delivery Flat 30 minutes
guaranteed delivery to Blaze one
subscribers based on AI based route
optimization & Omnichannel fulfilment
Rising incomes & Minimum Capex
The model doesn’t require any additional
capital expenditure and guarantees a
positive operational Income
Slotted Deliveries: Non-Blaze
customers Guaranteed 2 Hours delivery in
slots. Customers behavior are monitored
and ensured Last Mile Delivery system
Target Cities The metro cities we target
for hyperlocal model are: Delhi, Mumbai,
Bangalore, Hyderabad, Chennai, Kolkata,
Pune, Chandigarh, Lucknow, Kanpur
GIG Economy are becoming more and
more common in the Hyper-Local
Economy. The model has 1,50,000+ gigs /
day in 10 cities
Focus Areas are one basket including
“Groceries, Vegetables, pharma, bakery,
daily needs “and other basket having
“Fresh meat”
Hyperlocal last mile delivery Model
Seller/Vendor
Route Information Flow
What? Customers
Flipkart Optimization Product Flow
BLAZE Funds Flow
Ordering
Delivery Model Algorithm
Structure Delivery
partner

Suppliers in 2Kms Inventory Available Guaranteed 30 Minutes Delivery

How? Range Inventory Not Available Indicate Next Best available Slot
Transparency and Inventory Available Indicate Expected Time
Suppliers outside
In-Time Delivery
2Kms Range Inventory Not Available Show out of Stock

Why? Huge amount of Growing Customer

Minimal Capex No Real time
market untapped Demand for Minimum
required Inventory in Store
Size of the Pie for Fresh Meat Delivery Time
Flipkart Blaze one costing
• CAPEX Required : NIL (except Software development costs)
• Upfront Costs:
• DP Local Area Champion(LAC) cost
• Acquisition cost of Grocery sellers: Rs. 5.58 Cr
• Acquisition cost of Meat vendors : Rs.0.86 Cr
• Acquisition cost of Delivery partners: Rs. 4 Cr.
• Captive Inventory = NIL (Inventory managed only by vendors)
• Operational Costs:
• Average Ticket size Groceries : Rs 1000
• Average Ticket size Fresh Meat: Rs 1000
• Average variable cost per order: Rs. 35 / order.
• Assumptions:
• Software Development and route optimization costs: Zero ( As Flipkart possess these softwares already through EKART).
• Corporate Taxes : 40%
• Commission Schedule

Order Value Commission Delivery Fee Fixed Delivery Fee

Upto Rs. 250 6% Flat Rs. 40/ order Commission to Delivery Partner
Rs. 300 / 8 hrs Flat Rs. 35 upto first 2 km +
Rs. 250-750 8% Flat Rs. 20 / order
Rs. 8 / km upto 6 km + 6/
Rs. 750 + 10% Free Delivery Km upto 10.
 Proforma
Financial
Statements
 Appendix 1- Groceries Revenue calculations
Fresh Meat Proposition
Considering only 25% of the Total Market Assume avg ticket Revenue in Crores
Assumption Big Cities Size target Size of Rs 700 (Target 25% of Market)
Cities Population in Cr Weightage Market Size (Orders/Day) Avg Ticket Size (Rs) Revenue/Day (In Cr)
Delhi 2.18 0.283669486 34891.34678 700 2.442394275
Mumbai 1.84 0.239427456 29449.5771 700 2.061470397
Bangalore 0.843 0.109694209 13492.38777 700 0.944467144
Hyderabad 0.68 0.08848406 10883.53936 700 0.761847755
Chennai 0.71 0.092387768 11363.69551 700 0.795458686
Kolkata 0.45 0.058555628 7202.342225 700 0.504163956
Pune 0.312 0.040598569 4993.623943 700 0.349553676
Chandigarh 0.11 0.014313598 1760.572544 700 0.123240078
Lucknow 0.28 0.036434613 4481.457385 700 0.313702017
Kanpur 0.28 0.036434613 4481.457385 700 0.313702017
Total Of these Cities 7.685 123000 9
Revenue per Year (In
Cr) 3,142
 Appendix 2 Fresh Meat Revenue calculations
Groceries/Personal & Baby
Care/ Daily Need Proposition
Total Industry Revenue is 56
Considering 11 outlet for every 66% of total Outlets are Lakh Cr, Target 10% of
Assumption only Big Cities 1000 people Groceries Grocery outlets
Cities Population in Cr Weightage # Outlets (In Lakhs) # Grocery Outlets (Lakhs) Revenue In Cr per year
Delhi 2.18 0.283669486 2.398 1.58268 9390.769231
Mumbai 1.84 0.239427456 2.024 1.33584 7926.153846
Bangalore 0.843 0.109694209 0.9273 0.612018 3631.384615
Hyderabad 0.68 0.08848406 0.748 0.49368 2929.230769
Chennai 0.71 0.092387768 0.781 0.51546 3058.461538
Kolkata 0.45 0.058555628 0.495 0.3267 1938.461538
Pune 0.312 0.040598569 0.3432 0.226512 1344
Chandigarh 0.11 0.014313598 0.121 0.07986 473.8461538
Lucknow 0.28 0.036434613 0.308 0.20328 1206.153846
Kanpur 0.28 0.036434613 0.308 0.20328 1206.153846
Total for these Cities 7.685 5.57931 33,105
 Appendix 4 Local Area champion calculations
No. of outlets /champion 100
5,00,00,000 Target ratio of outlets 10%
Enrollment incentive /grocery outlet 1000 Incentive / Delivery Partner 500
Groceries Enrollment incentive /Meat outlet 1000
Assuming 500
Considering 11 outlet for every 66% of total Outlets are Assuming 10% of Outlets to Enrollment for Enrollment for each Assuming max of 1.6 Uniform distribution incentive per
Assumption only Big Cities 1000 people Groceries be targetted 1 champion per 1000 outlet each champion champion Lakhs Order per day per Champion Delivery Partner
Enrollment costs Enrollment Cost
Enrollment costs (in Total Delivery person # of Delivery Person
# Target Meat (in lakhs) - (Delivery
lakhs) - Fresh Meat Needed in the City per Champion
Cities Population in Cr # Outlets (In Lakhs) # Grocery Outlets (Lakhs) # Targeted outlets (Lakhs) Outlets ( Lakhs) # Champions needed Groceries partners) in Lakhs
Delhi 2.18 2.398 1.58268 0.158268 0.02443 158 158.268 24.43 22693.55888 143.6301195 113.4677944
Mumbai 1.84 2.024 1.33584 0.133584 0.02062 134 133.584 20.62 19154.19649 142.9417648 95.77098243
Bangalore 0.843 0.9273 0.612018 0.0612018 0.00945 61 61.2018 9.45 8775.53676 143.8612584 43.8776838
Hyderabad 0.68 0.748 0.49368 0.049368 0.00762 49 49.368 7.62 7078.724789 144.4637712 35.39362394
Chennai 0.71 0.781 0.51546 0.051546 0.00796 52 51.546 7.96 7391.02147 142.1350283 36.95510735
Kolkata 0.45 0.495 0.3267 0.03267 0.00505 33 32.67 5.05 4684.450228 141.9530372 23.42225114
Pune 0.312 0.3432 0.226512 0.0226512 0.0035 23 22.6512 3.5 3247.885491 141.2124127 16.23942746
Chandigarh 0.11 0.121 0.07986 0.007986 0.00124 8 7.986 1.24 1145.087833 143.1359792 5.725439167
Lucknow 0.28 0.308 0.20328 0.020328 0.00314 20 20.328 3.14 2914.769031 145.7384515 14.57384515
Kanpur 0.28 0.308 0.20328 0.020328 0.00314 20 20.328 3.14 2914.769031 145.7384515 14.57384515
Total for these Cities 7.685 8.4535 5.57931 0.557931 0.0861 558 557.931 86.1 80000 400

Total Cost Needed

in Lakhs for
Delivery Executives 1044.031
 Appendix 5 Unit economics and expenses
Delivery Partners / Champion 140
Duty Rates 300
Operating Profit Calculations (per day)
Avg Ticket Size 1000
Cost of Delivery
Order Per Outlet per Day 16
Fixed Cost of Duty # Outlets 55793
Area Number of Champions Number of Delivery Person ( In Laksh)
Delhi 158 0.2212 66.36
Commision 7%
Mumbai 134 0.1876 56.28 Commision in Total per day per
Bangalore 61 0.0854 25.62
Hyderabad 49 0.0686 20.58 Outlet (Rs) 70
Chennai 52 0.0728 21.84 Delivery Charge per Order(Rs) 35
Kolkata 33 0.0462 13.86
Pune 23 0.0322 9.66 Variable Profit per day per outlet
Chandigarh 8 0.0112 3.36 (Rs) 35
Lucknow 20 0.028
8.4 Variable Profit/day (Rs) 31244080
Kanpur 20 0.028 8.4 Fixed Cost of Delivery Person (Rs) 23436000
Total for these Cities 234.36 Profit per (Rs) 78,08,080