[Startup Bharat] Inspired by Dunzo, Bhubaneswar-based Mo BBSR is looking to disrupt the hyperlocal delivery segment

The hyperlocal delivery space has been increasingly gaining popularity due to increasing digitisation. According to a report by Ken Research, the market is expected to cross Rs 2,306 crore this year. The pandemic outbreak has also given a boost to the already growing market.

While the hyperlocal delivery market is a big hit in cities, the segment does not have many takers in smaller towns. To bring in these facilities to Tier I cities and tap into the growing hyperlocal delivery space, Archisman Acharya and Manoj Kumar started Mo BBSR in Bhubaneswar. Mo BBSR, which stands for My Bhubaneshwar, was launched by in June 2020. 

Speaking to YourStory, Archisman says, working as a Software Engineer for United Health Group gave him the opportunity to travel to several cities across India. During his trip to Bengaluru, he came across hyperlocal delivery startup Dunzo, and this gave him the idea to start similar services in his hometown.

“People from Bhubaneswar have always been keen towards adopting new products and services. I wanted to make sure that services which are generally available in Tier I cities are also available in Bhubaneswar. I called up some of my friends and discussed the idea with them and then began piloting the app in April. The startup was officially registered in June,” Archisman says.

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24x7 delivery app

According to the co-founder, the mobile app was being tested in seven regions in Bhubaneshwar and the product was rolled out recently in October after receiving satisfactory response from the users. 

Available on Google Play Store, Mo BBSR enables people staying in Bhubaneshwar to order groceries, snacks, fruits, vegetables, and bakery items using the mobile application. The 24x7 delivery app claims to deliver goods within 45 minutes of placing an order anywhere across the city. 

“We launched amid COVID-19, but we had been working on the research from before. Providing solutions amid the coronavirus crisis was not the one and only goal for us. Rather, we wanted to bring a change in consumer behaviour like what Amazon did in the ecommerce segment," says Archisman.

"I know bringing change in consumer behaviour takes a lot of time as people are wary about it initially. But I believe that people from Bhubaneshwar are always open to experiment with new services and they deserve all the facilities available in an urban city,” he adds.

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Business and more

According to him, the app clocked in around 14 orders per day within one month of going live. “We are working with 100 stores as of now. While almost 70 of them have already been listed on the app, we are completing the procedures to list 30 more soon,” he adds.

He also explains that it has been difficult to onboard supermarts and big stores on the platform. Due to this, the company has been focusing on bringing small stores and local kirana stores on board to help them gain digital presence as well as boost the startup’s clientele.

The bootstrapped startup has already recorded over 1,000 downloads on the PlayStore. Speaking about the business model, Archisman says that Mo BBSR operates on three revenue streams. First is a commission-based model where the startup charges a fee from the vendors using the platform. Apart from this, the startup also allows users to purchase things from popular stores even if they live far away from the stores. It charges higher delivery fees for such orders and operates on a pre-order model.

The startup is also targeting apartment complexes for a subscription-based model where people from one complex can subscribe for daily items such as milk, eggs, among others.   

Mo BBSR is competing with notable players in this segment including startups such as Dunzo, Swiggy Go, Jugnoo, and Bigbasket among others.

Archisman says that the company is currently looking to onboard more vendors and users across the city. It is also looking to expand its presence to other cities in Odisha, and plans to launch services in other cities across the country as well in the long run.