If the internet is the God of quarantine economy and Zoom, the king then the micro delivery model can be rightly called the bishop of pandemic and post-pandemic era.
But what IS micro delivery model?
So, without further ado let’s get to the bottom of it.
What is micro delivery model?
The micro delivery model is a segmented delivery model that focuses on delivering essential items to the consumers/customers within a set time frame regularly. This delivery model primarily applies to everyday consumables like milk and vegetables that are a necessity to a lot of people.
Micro delivery can be called the legit child of the hyperlocal delivery model. Almost until six months nobody even cared about micro delivery services when startups like Milkbasket were putting in serious efforts to make the lives of the people easier with technology and the comfort of daily home delivery. That situation sounds exactly like that of the hyperlocal delivery model, right?
Someone had correctly said that a trend in need is a trend indeed!
Difference between micro delivery model and on-demand delivery model
A micro delivery model contrasts the on-demand delivery model in its entirety. Unlike an on-demand delivery model, the micro delivery model lets customers place a fixed order of perishables and daily consumables to be delivered at the doorstep every day or at frequent intervals on a regular basis.
Customers have the leisure of ordering things on short notice and the service will dispatch the same at a fixed time day after day. For example, the daily newspaper that you have been paying for to be delivered at your doorstep every day for years has been following the micro delivery model.
The micro delivery model allows customers to subscribe to daily needs with full control over the volume, frequency, brand, etc, along with the flexibility to cancel at will with the tap of a button on their smartphones, unlike the on-demand model where you have to order every single time you need something. These two delivery models have their own use cases i.e. while the on-demand delivery model is quite useful in ordering things that you do not have to reorder or you’d need once in a while, it’s not feasible for the items you need on a daily basis since the model is least efficient for that kind of service.
The ones using this service belong to the new league of customers enjoying the micro delivery or the hyperlocal delivery ecosystem that is being built in densely populated countries like India where perishables like milk are consumed with consistent regularity. Some of the popular services that follow the micro delivery model are Big Basket Daily, Milkbasket, and Supr Daily.
In order to understand the implementation of micro delivery and its benefits completely, you need to have an in-depth knowledge of the hyperlocal business model. For a better understanding of the hyperlocal delivery model and its scope read Why is Hyperlocal business better than eCommerce.
Use case of micro delivery model
Understanding the micro delivery model would be easy with a proper use case.
For people like Rajeev who live in a locality where there are no shops in the nearby vicinity, buying daily household items is a struggle. Although they stock up most of their groceries once in a while from the market, items like milk and perishable vegetables still have to be brought once in two-three days if not every day.
This is where the micro delivery apps come to their rescue where people like Rajeev can get perishables delivered at their doorstep daily with just a few taps on their smartphone.
This can be applied to all the items that people might need on a daily basis within a certain time frame or schedule like newspapers, bananas, berries, etc.
Successful business startups using micro delivery model through mobile application
MilkBasket is a subscription-based milk delivery mobile application that delivers milk, bread, eggs, butter, juices and other perishable items on a daily basis to its customers in certain cities of India.
In fact, during the pandemic when all the other star-studded startups came crashing down Milkbasket managed to raise $5.5 million with plans to turn profitable in 2020.
OwO is another Indian mobile application-based startup that religiously follows this model to a point where it calls itself a micro delivery app. OwO is a very successful venture that is we are dedicated towards bringing disruption in the packaged drinking water delivery industry and has become a household name in most of the cities it functions.
Even OwO managed to raise 50 million rupees this year in May amidst the pandemic and has collaborated with key players like Bisleri, Aquafina, and Kinley who are the market leaders in the industry.
Matrix-backed Country Delight is a leading door-step milk delivery platform in India that has been delivering fresh, natural cow and buffalo milk and other dairy products, every morning to the households successfully without a single-day miss.
Its product offerings include cow milk, buffalo milk, curd, paneer, bread, etc all of which are delivered within the delivery timeslot chosen by the consumer. Consumers can also pause & restart the subscription as per their convenience.
It was one of the few delivery platforms that was able to uninterrupted delivery of daily essentials during the pandemic.