Subject category:
Ethics and Social Responsibility
Published by:
IBS Case Development Center
Length: 8 pages
Data source: Published sources
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https://casecent.re/p/153236
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Abstract
The case is about India-based grocery & FMCG delivery start-up Grofers India Ltd (Gofors); which was started in 2013 as a B2B delivery service; connecting more than 1000 merchants. Later on; in developed into an online service that connected offline retailers with customers. It received a seed funding of USD500.00 from US-based venture capital firm Sequoia Capital and the founder of restaurant search service Zomato; Deepinder Goyal. In the next couple of years it received another round of funding; and also acquired several companies in the B2B; food tech; and logistics arenas to strengthen its position. By 2015; it had a presence in 26 cities. Through the Grofers' app/website customers could order groceries or FMCG products; and have them delivered at their doorstep within 90 minutes. To enable this; Grofers partnered with retail stores in several cities; with some place being earmarked for it in each of these stores. When a customer placed an order; the stores closest to the customer's location which had those products were informed and a delivery person from Grofers picked up the goods and delivered them to the customers. Though Grofers was expanding rapidly; it found the going tough; especially in Tier II cities where people preferred to shop at the local stores. It also faced other problems in terms of listing the stores; and its inability to provide discounts coupled with high delivery and mobility costs. The company then decided to shut down operations in 9 locations. Moreover; e-Commerce giants in the country like Amazon and Flipkart had also started grocery retailing; posing a threat to Grofers. It was also in for competition from several smaller local players.
Subject category:
Ethics and Social Responsibility
Published by:
IBS Case Development Center
Length: 4 pages
Data source: Published sources
About
Abstract
The case is about India-based grocery & FMCG delivery start-up Grofers India Ltd (Gofors); which was started in 2013 as a B2B delivery service; connecting more than 1000 merchants. Later on; in developed into an online service that connected offline retailers with customers. It received a seed funding of USD500.00 from US-based venture capital firm Sequoia Capital and the founder of restaurant search service Zomato; Deepinder Goyal. In the next couple of years it received another round of funding; and also acquired several companies in the B2B; food tech; and logistics arenas to strengthen its position. By 2015; it had a presence in 26 cities. Through the Grofers' app/website customers could order groceries or FMCG products; and have them delivered at their doorstep within 90 minutes. To enable this; Grofers partnered with retail stores in several cities; with some place being earmarked for it in each of these stores. When a customer placed an order; the stores closest to the customer's location which had those products were informed and a delivery person from Grofers picked up the goods and delivered them to the customers. Though Grofers was expanding rapidly; it found the going tough; especially in Tier II cities where people preferred to shop at the local stores. It also faced other problems in terms of listing the stores; and its inability to provide discounts coupled with high delivery and mobility costs. The company then decided to shut down operations in 9 locations. Moreover; e-Commerce giants in the country like Amazon and Flipkart had also started grocery retailing; posing a threat to Grofers. It was also in for competition from several smaller local players.
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Subject category:
Ethics and Social Responsibility
Published by:
IBS Case Development Center
Length: 4 pages
Data source: Published sources