This year has been challenging for most of us; more so for the businesses due to the COVID-19 pandemic. Especially, the companies that are on the brick & mortars model have experienced massive losses. Where in e-commerce certain industries have encountered the pandemic as a catalyst accelerating rapid and sustainable change that might have taken years in order to condense profits. Likewise in Pakistan, online grocery companies have spiked in growth post-pandemic attracting multiple new entrants to offer a unique value proposition. Startups including Airlift operating in ride-hailing industry has terminated its operations and entered the online grocery industry considering the growth opportunities and changing shopper behaviour. According to Pakistan Bureau of Statistics (PBS), the groceries market is growing at a rate of more than 15% annually and 35% of total consumer spending is based on grocery which has been lifted in the post-pandemic situation. Similarly, Peoples awareness of the virus, its transmission of multiple contributing factors have encouraged shoppers to purchase groceries on the comforts from the home.
In this blog, I will be discussing GrocerApp.pk that facilitates consumers to get groceries delivered the same day to their doorstep from its web and mobile app. It has been in operating Pakistan’s market since 2016 but the recent transformation consumer’s trust in online spending for grocery has saved the company from multiple prominent cash burning. Since the GrocerApp is the only leading company in Pakistan’s e-grocery market it can outperform the incumbents in the market through its learning orientation in terms of the market situation, buying behaviours. Moreover, the company has fulfilment facilities in place from where the fleet drivers pick up the products after the order placement from the consumers in order to perform timely delivering as enhance the customer service. Similarly, the highly competitive property of the industry requires the company to heavily push its service to the consumers in the form of quality after-sale and marketing services. And the multi-homing nature in the industry has enabled this startup to ensure strict quality insurance measurements to satisfy consumer demands.
In Conclusion, the only way to survive and become sustainable in the e-commerce industry is to constantly innovate the products and services. Globally, the digitalization has enabled groceries to become the fastest-growing e-commerce segments, thus is evident that convenience has actually outperformed the hypermarket model in lucrative profits, and market share.