Here is why BigBasket might kill Grofers in the long run…

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A lot of grocery delivery startups opened in India in the last couple of years. Majority shut down due to razor thin margins and profitability concerns. There are 2 startups which are still going strong. This article does a comparison of the two:

Business Model:

Grofers- Serves as a marketplace for grocery retailers

BigBasket- Has its own warehouses for inventory

Technology:

Grofers- Can place an order only from mobile app

BigBasket- Can use both website and the mobile app to order grocery

Traction Numbers:

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So based on the traction it looks like BigBasket is winning on most of metrics.

Customer Satisfaction:

Although, the Google Play rating for both the companies is same (4 star)right now, the thing to note is that BigBasket is gradually improving while Grofers is not.

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Source: http://startupnps.com

BigBasket’s rating improved from 3.9 to 4 since March and Grofers is seeing an increase in negative ratings in the last quarter.

Customer Comments:

On categorizing the comments made by their customers on Twitter and Google Play store, we noticed that both the companies have the similar pain points (delivery time being the biggest). But there are some differences as well:

Grofers- Compared to BigBasket, more negative comments related to order accuracy. Checkout this sample tweet.

“@grofers missing half of my order and see no follow up on my support ticket. what is the expected turn around time for support?

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Source: http://startupnps.com

BigBasket- Compared to Grofers, more negative comments related to product quality (quality of the groceries delivered). Below is one sample tweet about it.

“@bigbasket_com quality going downhill, recieved rotten vegetables. complaint lodged but no response. #mumbai

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Source: http://startupnps.com

Interestingly, the strengths and weaknesses can be attributed to the difference in the Business models. BigBasket carries its own inventory so is able to fulfil the order correctly but faces challenge with ensuring the quality of its massive inventory.

Below is the full categorization of negative comments for both the startups

Source: http://startupnps.com/startup/Bigbasketcom
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Source: http://startupnps.com/startup/Grofers

Although, BigBasket is currently doing better than Grofers but only time will tell how this sector evolves over time and which company emerges as the winner ultimately.

The source of all this data is http://startupnps.com. Please comment below if you would like to see similar comparison for any other startups/sectors.

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Written by

@DataScientist Capital One. @Founder startupnps.com

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