Last Mile Delivery Innovations

I came across by this random Twitter post, which shared a fun spec ad on magicpin’s 15min food delivery offering (pic). Intrigued, I spent the last 2hrs researching about it. And I am really excited, as Anshoo and team have practically worked out a whole new hyperlocal logistics model to challenge the duopoly of Swiggy and Zomato (which is also a shareholder)  🙌🙌 Data is proof that this is a serious challenger to the two big giants. But, it’s quite sad that there is no post out there, covering this new logistics model that Magicpin has built, and what makes it different. Thus, here is all I learned! .. See, Magicpin has been onboarding tens of thousands of restaurants across cities to deliver food via Govt-backed ONDC at very low commission rates. And it already does ~2 lakh orders a day, which is about a tenth the scale of Swiggy & Zomato. Thus, already a serious contender in the food delivery market. But, how did it get there? -> It onboarded numerous delivery partners in various cities, including big names like Shadowfax, Rapido, Porter, Ola and Zypp Electric -> And, it began assigning the order pick-up and delivery to the lowest-cost provider from a given radius -> Magicpin practically perfected this model to the extent that it promised 30-minute deliveries This helped it cement to a tenth of Zomato and Swiggy’s scale in such less time 👏👏 .. Having aced this, Magicpin started conceptualising a new disruption for the space - MagicNOW. This was about partnering with restaurants to enable food order deliveries within 1.5-2km radius in a targeted 15mins. And this is something Magicpin has nailed over the last month or so, with nearly a lakh deliveries from ~2k restaurants and QSR brands across Bengaluru, Hyderabad, Mumbai, Chennai, NCR and Pune. These included big brands like Chaayos, Faasos, Wendy’s, Burger King, McDonald’s etc. Outcome? A means for the restaurant and QSR industry to deliver food orders in 15mins, without sharing much of the margins with Swiggy or Zomato 👏👏 .. With that, we now have 4 serious players in the game rapid food delivery game. -> Swiggy’s Bolt which competes with the hyperlocal delivery industry -> Zepto Cafe and Zomato’s Bistro by Blinkit, which competes with hyperlocal logistics players and also restaurants -> MagicNOW which doesn’t compete, but generates more business for them. That puts it on a favourable supply side pedestal versus Zomato or Swiggy And given Magicpin had scaled to ~2L orders already, the 15min delivery promise will surely perk up its daily order volumes in a big way. .. That said, I share such non-trending insights with 20k+ investors on WhatsApp daily. Do check out: https://lnkd.in/gKrAWbnt Best, Jayant Tags: Open Network For Digital Commerce (ONDC) | #magicNOW #quickcommerce

Can Rapido disrupt the Swiggy-Zomato duopoly in food delivery? A logistics-first playbook is unfolding. And it’s not coming from a food-tech incumbent. It’s coming from a bike-taxi disruptor. Rapido — valued at $1.1B — is stepping into the food delivery ring. But instead of copying Swiggy or Zomato, it’s flipping the script: - Start with B2B delivery infra - Build a consumer marketplace next - Monetise through subscriptions, not commissions This isn't speculation. - Rapido already powers delivery for Swiggy, ONDC, and restaurant partners. - Now it’s in early talks with restaurants for a flat-fee subscription model. If that works, it changes everything. Why it matters: •Rapido offers lower delivery cost via a bike-only fleet •It has native ONDC integration — unlike Swiggy (experimenting) and Zomato (distanced) •It avoids the commission war by offering fixed, predictable pricing to restaurants Let’s look at the numbers... - FY25 Revenue (Food delivery only): •Swiggy: ₹6,362 Cr (+22.5% YoY) •Zomato (Eternal): ₹8,080 Cr (+27% YoY) - Total Revenue & Profitability: •Eternal: ₹21,320 Cr revenue (+64.5%) with ₹527 Cr profit •Swiggy: ₹15,623 Cr revenue (+34.3%) with ₹3,117 Cr loss •Rapido: ₹648 Cr revenue (+20%) with ₹760 Cr loss (down from ₹876 Cr) Rapido is still burning cash, but reducing losses faster. And it’s doing this while building infra that others already depend on. Rapido took on Ola-Uber with: - Subscription-led monetisation for drivers - Tier 2/3 city focus - Asset-light operations - CAC reduction via on-ground activations It worked. •They scaled to 120 cities and 3.5M rides/day. Can they do it again in food delivery? Maybe. But this is harder. Success won’t come from logistics alone. It’ll require: •A premium user-facing app •Restaurant variety and quality •Loyalty programs •Delivery reliability And here’s the kicker: Rapido raised ₹250 Cr in its latest round. Zomato and Swiggy spend multiples of that—every quarter—on marketing, loyalty, cloud kitchens, and dark stores. Still... Rapido has one thing working in its favor: A value proposition the others can’t match — affordability without deep losses. From an investor’s lens: •This is a capex-light, ONDC-native, long-term bet From an analyst’s view: •This is an economy-of-scale expansion using existing infra From a restaurant’s view: •This is margin relief and a second chance From a user’s view: •The experience will need to match the savings If Rapido nails the consumer layer the way it nailed logistics... It might just wedge into the cracks that Swiggy and Zomato left open. There might be room for a third plate on the table in India's food-tech battlefield What are your thoughts? Do share them in the comments #rapido #ola #uber #swiggy #zomato

I watched a robot deliver food from a restaurant two blocks away. It was ridiculous and SO F**KING COOL! Who is shaping the future of autonomous food delivery? Coco: The new OpenAI partnership and fresh $122M in Series B funding for enhanced path planning lays the foundation for market dominance Manna Air Delivery: 3-minute drone deliveries are proving the speed advantage Wing: Multi-modal partnerships (see: Serve Robotics collab) are expanding their addressable market Nuro: Licensing pivot + deepening relationships with Uber highlights strategic focus to become the foundational autonomous vehicle technology provider Starship Technologies: With 8M+ deliveries; scaling from 50 campuses to 150 cities globally shows sustainable execution Zipline: Remains the drone delivery heavyweight with restaurant partnerships pushing beyond traditional medical deliveries Several key categories define the autonomous food delivery market: → Sidewalk Delivery Robots: Small autonomous robots designed for short-distance deliveries in pedestrian areas → Road-Based Autonomous Vehicles: Larger autonomous delivery vehicles capable of operating on public roads → Hybrid Remote-Operated Systems: Robotics solutions combining autonomous navigation with remote human oversight → Multi-Modal Delivery Platforms: Integrated systems combining various autonomous delivery methods with traditional logistics → Indoor/Controlled Environment Robots: Specialized robots for deliveries within buildings, hospitals, and controlled facilities → Drone Delivery Integration: Aerial autonomous delivery systems for rapid food delivery Market leaders in each category are emerging. But, while the market leaders are gaining commercial traction, winning key partnerships, and attracting funding, several players, including once-promising names are struggling to deliver (pun intended). In a market that once was betting on promise, execution is now table stakes. What recent highlights tell us about the evolution of the market: ↳Market leaders are now making millions of deliveries with 99% autonomy; proving scalability ↳Major platforms (Uber, DoorDash) are all-in with partnerships, driving adoption and revenue to fuel the next wave of innovation ↳Tech advancements and maturation are enabling the market shift from confined, controlled pilots to complex urban deployments ↳Investors are willing to write (big) checks to companies that are proving commercial traction with Nuro, Coco, Manna, and Neolix all raising fresh rounds this year We're witnessing the transition from “oh, look a robot” to "scalable last-mile infrastructure." 2025 is shaping up to be the year your Uber Eats or DoorDash driver isn’t a driver at all. P.S. Want more insights on the companies building the future of food delivery? Comment "insights delivered" below for *free* access to CB Insights' data and insights on the autonomous food delivery markets.

For a decade, food delivery in India was a settled business. Now Swiggy and Eternal are publicly betting on opposite futures. Swiggy is betting the future is a cheaper marketplace, i.e., Toing. Eternal is betting the future is a rebuilt kitchen, i.e., Bistro. Toing (and by extension Ownly) are expanding the market. 2 out of 3 Toing users are new to the Swiggy platform. The one-third who overlap with Swiggy exhibit one of two behaviours. Some just want an alternative and find Toing more appealing (staying within the company), while others split their use cases between Toing and the main Swiggy app. But Swiggy management pushed back hard on Ownly’s “zero commission” positioning, calling it a marketing label that doesn’t hold up to “the reality of the business.” Swiggy’s position is that a platform can lower or restructure fees, but it can’t make the underlying cost of delivery vanish. Basically, someone has to pay the cost of the platform for the model to be durable. The take rate shrinks but does not disappear. On the other hand, Deepinder Goyal says Bistro is his answer to the question Ownly and Toing are “pretending to solve”. He argues that you cannot make food delivery work at ₹50-150 price points without supply chain innovation and rethinking kitchen operations from first principles with custom equipment, workflows, and automation purpose-built for high-volume, limited-menu formats. In his view, speed and affordability are both downstream of the same rebuilt kitchen. On the shutdown of its own micro-kitchen experiment Snacc, Swiggy told analysts yesterday that the model needs a different kind of expertise, costs more to build, and carries highly uncertain economics. Rebel Foods built a 15-minute app called QuickiES and shut it too. Neither of which seems to worry Eternal or Swish. That is the fork. Every challenger here is still tiny next to the incumbents. So far, their market share is not under threat. But the biggest names are clearly preparing for a future that looks nothing like the last decade.

How can we apply a practical, urban-realistic way to apply #logistics #postponement in a highly congested, on-demand last-mile network like #Mumbai? In congested cities, postponement is about delaying final movement, routing, and configuration until the last responsible moment. The approach is keep #inventory close but not committed. The centralised approach fails in a mega-city like Mumbai: One DC → citywide delivery. Traffic uncertainty explodes lead time variability. The Postponement-enabled urban model is about Central DC (bulk stock) → Urban Consolidation Centers (UCCs) at city periphery → #MicroFulfilment Centers (MFCs) inside #demandclusters → Final delivery only after order confirmation. The best example can be found in Bulk FMCG or pharma moved at night from Bhiwandi to Andheri / Kurla / Navi Mumbai hubs, but SKU allocation to pin codes happens only after order arrival. The method intensifies with Postponement of #routing & carrier selection, not just dispatch. In Mumbai, route certainty is an illusion. Freeze inventory location early, but postpone route, vehicle, and rider assignment until real-time traffic, rain alerts, local event disruptions (VIP movement, rallies), time of day-traffic signals become themed. The Zomato / Blinkit style logic: Order placed → dynamic rider + route selection → micro-batching of nearby drops. This is logistics postponement via #algorithms, not #warehouses. The next would be to postpone order #consolidation at hyperlocal level. Instead of: one order → one trip, use temporal postponement windows (15–30 minutes), cluster orders by building, society, or lane. The best examples can be found in Residential towers in Powai / Lower Parel: Orders collected till 7:15 pm: single trip → multi-drop → elevator-based batching. This cuts vehicle-km, not just delivery time. But Product postponement can hardly be ignored, where the approach is move generic SKUs, finalize late. This works surprisingly well even in cities, the best examples are: Pharma: strip-level inventory, finalize packs at MFC or Food & QSR: base prep centralized, final assembly near consumption. This reduces wrong-SKU trips or emergency re-routes across the city. But use of time-based postponement, not distance-based is rising. Mumbai logistics works better by time slices than geography. Here the smart play is: Heavy replenishment → night / early morning; On-demand delivery → daytime micro-movements and returns & reverse logistics → off-peak windows. You postpone when you move, not where. But enable postponement with the right control layer. Must-have enablers would be #ControlTower with: Live traffic + weather feeds, Rider density heatmaps, SLA risk alerts by pin code. Also must have Order promising engine that: Adjusts delivery windows dynamically and avoids false speed promises during congestion. In Mumbai, promise accuracy beats speed. But rigid #SLAs kill postponement, better orchestrate customer-enabled postponement. Read my article.

Uber is no longer just investing in Delivery Hero — it is moving closer to the crown jewels Uber has increased its stake in Delivery Hero to 19.5%, while securing another 5.6% through options. That is no passive position. In platform economics, stakes of this size create strategic proximity: proximity to assets, data, regional market leadership and future optionality. The interesting part is not only Delivery Hero itself. It is the portfolio underneath. Delivery Hero controls some of the most strategic delivery assets across high-growth regions: • talabat in the Gulf region • Yemeksepeti in Turkey • Glovo across Southern Europe, Africa and parts of Eastern Europe These are not simply delivery brands. They are deeply embedded local consumer infrastructure platforms with strong logistics density, high order frequency and significant market share in regions where competition barriers are structurally high. Uber already dominates mobility in many global cities. The missing piece has always been stronger positioning in several international delivery markets outside North America. This latest move inevitably raises a larger question: Is Uber gradually positioning itself for deeper strategic influence over Delivery Hero’s most valuable regional assets? The timing adds another layer. The investment increase follows governance pressure from shareholders, the announced departure of co-founder Niklas Östberg and Delivery Hero’s ongoing strategic review. In global platform markets, strategic stakes are rarely only financial. They create visibility, influence and potential pathways toward partnerships, asset carve-outs, regional consolidation or eventually larger transactions. The delivery sector is entering a different phase now. The era of aggressive expansion is giving way to: • consolidation • profitability focus • ecosystem control • infrastructure ownership • regional dominance And in that environment, platforms like Talabat, Yemeksepeti and Glovo become exceptionally strategic assets. Uber’s latest move suggests the company understands exactly that. #uber #deliveryhero #glovo #talabat #yemeksepeti #fooddelivery #quickcommerce #ecommerce #retail #retailtech #foodtech #logistics #platformeconomy #mobility #digitalcommerce #marketplaces #consumertech #investors #privateequity #venturecapital #startups #technology #marketing #sales #omnichannel #germany #usa #turkey #middleeast #europe

Quick Food Commerce 2.0: Can Swish Crack the 10-Minute Code? 10-minute food delivery is a tough game, and even giants like Zomato couldn’t crack it. But here’s where I think Swish is different... With $2M in seed funding from Accel and top angel investors, they’re betting on a hyperlocal model and lean operations to reimagine convenience at speed. How are they doing it? —> Hyperlocal Pods: Cloud kitchens serve within a 1.5 km radius, ensuring speed and efficiency. —> Optimized Process: Food is prepped, packed, and ready in under 7 minutes, with deliveries taking just 3-5 minutes. —> Profitable Margins: With 70% margins on food items, Swish isn’t just about speed—they’re about sustainability. In just three months, Swish has scaled to 150-200 orders daily, with an average order value of ₹250-₹300. They’re already expanding across Bengaluru, with plans to open 150 Pods in high-demand areas soon. Here’s my take: Speed alone isn’t enough—Swish is balancing efficiency, scalability, and profitability to build something truly impactful. They’re proving that in a competitive market, focused execution can make all the difference. The big question is: Can they scale this successfully and win in a space others couldn’t? This space is heating up—what’s your take? #QuickFoodCommerce #10MinuteDelivery #StartupInnovation

Digital platforms are known to diversify into adjacent (and sometimes not so adjacent) markets. By leveraging #digitaltechnologies and #learning they can develop new products which can be effectively promoted to exiting user bases. Think Uber launching #UberEats, or Amazon entering the seller market. But, in #sharingeconomy platforms where a significant share of a platform's value is created by #gigeconomy workers (think Uber drivers) how does such diversification impact their activities on the platform? That's the question that Hyuck David Chung, Maggie Zhou and Christine Choi address in the latest #PlatformPapers blog. Drawing from their research on #Uber launching Uber Eats in #NewYorkCity, they document evidence of a cannibalization effect. That is, Uber drivers also diversify 𝘵𝘩𝘦𝘪𝘳 activities by making deliveries, thus reducing their time on the #ridesharing app. What's more, the launch of Uber Eats also drew drivers away from Uber's main competitor, Lyft. You could say that by launching Uber Eats, Uber eats its own business and that of its competitors, too! The blog, which also touches on implications for managers and policy makers, is worth a read. Platform Papers is a #blog about #platformcompetition and #BigTech. The blog is linked to platformpapers.com. Subscribe for free on #Substack to receive future blogposts in your inbox (and please share)!

India’s Rs 35,000 Cr Food App Boom: How Cloud Kitchens Are Disrupting Dining and Redefining Daily Life In 2024, India’s food delivery apps clocked Rs 35,000 crore in revenue, processing over 220 crore orders. But this isn’t just about convenience. It’s about how India eats, lives, and builds businesses in a new digital-first era. The Growth Engine: Cloud Kitchens + Click-to-Crave Culture - Cloud kitchens, delivery-only kitchens with no storefronts, now power a Rs 9,185 crore industry, expected to triple by 2030. - Urban, app-savvy Indians are swapping home-cooked meals for fast, algorithm-driven food from sushi to South Indian thalis. - Swiggy, Zomato, and Rebel Foods dominate, but Tier 2 and 3 cities are fueling the next wave of growth. Key Stats (FY24) 1. Rs 35,000 crore industry revenue 2. 60–70 Lakh orders daily 3. 22–28% CAGR expected till 2030 4. Cloud kitchen market at Rs 9,100 crore, set to cross Rs 30,000 crore by 2032 5. Zomato turned profitable: Rs 912 crore EBITDA 6. Swiggy ramping up user & restaurant partnerships Why This Boom? - Convenience. Variety. Speed. - One-tap access to 50,000+ cuisine options - Discounts hooked users; habit sustained them - Time-poor nuclear families = rise in “eat-out-at-home” culture The Darker Undercurrents 1️⃣ Health Risks: Outsourcing meals = excess sugar, salt, and preservatives. Healthy cloud kitchens are rising, but are still niche. 2️⃣ Environmental Impact: Delivery packaging contributes to India’s 26,000 tonnes of daily plastic waste. Sustainability isn’t just a buzzword anymore; it’s overdue. 3️⃣ Worker Welfare: 30-minute delivery promises strain gig workers. Beneath the convenience is an ecosystem of overworked, underprotected staff. Unexplored Raj Perspectives: - Democratized entrepreneurship: Anyone with a good recipe can now serve the nation. - Disruption to dine-in: Traditional restaurants face existential pressure. - Cultural shift: Home kitchens go quiet, family dinners give way to food apps. - Algorithmic tastes: Local vendors compete with platform-boosted brands. What’s Next? - Rs 1 lakh crore market by 2030 - AI-driven nutrition & hyper-personalised menus - Rural expansion = new logistics challenge - Regulatory scrutiny on packaging, nutrition, and worker rights India’s food app economy isn’t just a business; it’s a social transformation. What began as convenience has morphed into a reshaping of health, culture, employment, and urban behaviour. This is not just a cloud kitchen boom. It’s India reimagining its daily plate and rewriting the recipe for the future. #india #food #business #strategy #economy #investing

From 'who wants the delivery in 10 minutes?' to eating a big chunk of Amazon and Flipkart's festive pie, the quick commerce platforms in India have come a long way in just 2-3 years. In the top 8-12 metros, Q-comm has transformed how we shop for everyday items, promising groceries, essentials, snacks, and now even electronics/appliances at our doorstep in just a few minutes. While this staggering growth will naturally slow down over time, I believe that quick commerce will continue to boom for at least the next two years. Here's why: 1. Expansion of Dark Stores Quick commerce is powered by 'dark stores' — small, hyper-local warehouses that handle orders exclusively for online delivery. Blinkit, Swiggy Instamart, Zepto, and bigbasket.com have set up over 2,500 dark stores nationwide, just 1-2 km away from high-demand areas. For context, each store can fulfill up to 2000 orders a day, with an average order assembly time of under a minute! Blinkit alone aims to establish a dark store for every 10,000 households, ensuring speed and efficiency. This dense network is a competitive advantage and a key reason why 10-minute delivery is even possible. 2. Surge in Consumer Demand for Convenience India's young, urban consumers are increasingly seeking convenience over price. The shift to Q-comm is natural for a generation accustomed to instant access to content, food, and transport. One of my contacts from this space told me that the online grocery demand in India surged by 76% in the last year, with quick commerce capturing nearly 25% of this growth. In metros like Delhi, Mumbai, and Bangalore, quick delivery options are particularly popular, with 30% of customers opting for these ultra-fast services over traditional grocery shopping. It's more than a trend — it's now an expectation. 3. Heavy Investment in Technology & Local Partnerships Tech is the backbone of Q-comm. Platforms like Zepto are investing heavily in AI and data analytics to forecast demand and optimize routes. With over ₹1,500 crores invested in tech infrastructure in 2023 alone, these companies are doubling down on making quick deliveries even quicker. Partnerships are also crucial. Blinkit's partnerships with regional brands enable faster restocking and offer customers better product availability. This combination of tech and partnerships ensures that these platforms handle a high volume of orders during peak hours without delays. With these pillars in place, Q-comm in India isn't just surviving—it's thriving. The model is efficient, matches the demands of our urban lifestyle, and is only set to expand further. The real challenge lies in going beyond the top 25-30 cities. Do you think Q-comm will soon become the norm in more Indian cities?