Shiprocket enters food delivery space
What's the story
Shiprocket, a leading logistics and e-commerce enablement company, has announced its entry into the food delivery sector to rival Zomato and Swiggy. The company is testing a new direct-ordering model called 'Fastrr' in partnership with two Delhi-NCR restaurant chains - Punjabi Angithi and Bikkgane Biryani. The move comes as restaurants look to keep more of their revenue amid rising aggregator commissions.
Revenue retention
How Fastrr works
The 'Fastrr' platform is designed to help restaurants leverage customer data for repeat orders.
Shiprocket Quick will then take care of home deliveries through third-party riders at advertised rates starting from ₹10 per km.
The move is aimed at reducing the costs incurred by restaurants due to aggregator commissions, taxes, discounts, and promotional expenses, which can consume up to 40% of an order's value.
Customer connection
Brands should connect directly with customers: Shiprocket's Gaurav Mangla
Gaurav Mangla, the CEO of Ads and Checkout at Shiprocket, emphasized the importance of brands connecting directly with their customers.
He said, "We believe brands should have the ability to build that relationship directly, rather than have it mediated entirely by third-party platforms."
The 'Fastrr' model will help Vegorama Group, which runs Punjabi Angithi and Bikkgane Biryani, identify potential and returning customers.
This will be done through targeted advertising, WhatsApp reminders, and personalized offers to encourage repeat purchases.
Delivery logistics
Outsourcing delivery instead of maintaining own fleets
Shiprocket Quick's delivery network, which includes Ola, Porter, Borzo, and Shadowfax Local, will manage deliveries from individual outlets with live tracking.
The service promises uniform pricing across partners and no surge fees. This way, restaurants can outsource delivery instead of maintaining their own fleets.
Deepak Chadha, founder of Vegorama Group, said the partnership with Fastrr by Shiprocket will support their digital growth through new marketing initiatives and a stronger online ordering experience.
Market growth
Shiprocket plans to expand Fastrr to other restaurant categories
Shiprocket plans to expand 'Fastrr' to quick-service restaurants, cloud kitchens, bakeries, and packaged foods. The company also intends to add loyalty programs and peak-hour delivery allocation.
The move comes as a response to growing competition in the space from DotPe and uEngage, which offer restaurant ordering apps and marketing tools.
EatClub and Rebel Foods' EatSure run direct-ordering platforms for their restaurant brands, while ONDC offers another alternative.