Grofers Case study 1 : Assignment 2

The following are the limitations I see with Grofers in the coming years-

1) Making the company profitable , because with just 5% margin in hand and providing On demand delivery within an hour, how will it manage such high costs of delivery on time and having such huge network of delivery guys against such low margins.

2) Grofers also delivers grocery, and since the delivery guys are just normal local kids, they have no training whatsoever regarding how to choose the best quality vegetables for the user. So within such a huge network how will it maintain quality of products picked by delivery guys in the grocery segment!

3) Partnering up with smaller kirana stores. Since indian grocery segment is deeply fragmented compared to the western markets , grofers needs to tie up with the smaller kirana stores more to provide a faster delivery. But since the smaller stores have a very limited profit margin at hand , it will be tough for them to partner with grofers. So they will have to find a way around that to scale and improve profit margins alongside.