Anuj Bishnoi and Mr. SatishShetty, the founders of morningcart saw a pain point in the ecommerce market.They were well aware of the players in the market, but hardly any one caredabout the pain point these two budding entrepreneurs identified. Let us seewhere is the pain point from a ecommerce company side till the last miledelivery. Here are the steps for any ecommerce order cycle in brief:Ø Customer goes to the site and looksfor the product he/she wants.o He/shehas to fulfill the minimum order amount for free delivery by adding productforcefully. ORo Paya delivery charge for a single product.
Ø He/she finalizes a product andproceeds to checkout.Ø He/she pays for it and the deliveryprocess is initiated.Ø Here on either of the things happen 😮 Deliveryboy comes at a particular time and you are not there.o Deliveryboy skips your delivery, just because there are more deliveries to cometomorrow.The pain points are depicted by “o”sign in the above process of ordering a product online.
These pain points wereidentified by the founders and decided to act upon it. Despite of the inconvenience causeddue to the points identified above, ecommerce companies also had to bear thecost because of such problems. Ø If the delivery was not successful,the operational cost would increase. That means the product comes back and goesagain for the delivery, which incurred costs.Ø If the delivery boy postpones thedelivery, the customer perception goes down effecting the chances of futurebusiness.
Ø Even if the customer is charged a feefor delivery if minimum order is not met, that fee is not enough for thedelivery of the product. Which in turn the company has to bear half of thecost.These pain points can be solvedeasily with 2 questions:1. Atwhat time of the day is the customer available to take the delivery?2. Whoare the people who visit your home or society every day?The solution was in the answer ofthese questions. The idea was very simple. Customers need whatever they want atfast speed and with no extra costs involved.
The Execution The answer to the two questions were simple:1. Atthe morning 5 A.M. to 8 A.
M.2. Milkmanand newspaper boys.The operational requirements for delivery between 5 A.M to 8A.M are different from the traditional time. You have to make the order readyin the previous day till night time to be ready for delivery.
There should beproper stocks of high selling products to avoid the “Out of Stock” label. Now, they had tie ups with milkmen and newspaper boys fortheir business to start. This ensured some extra income to their pocket.
Thechallenge was that these people were not digitally literate. To manage the dayto day deliveries of products, they had to learn how to use the app which hadthe information about the products. They also had to learn complaints handlingskills which came handy while interacting with customers. The listing in the MIS is done society wise i.e. themanagement of the societies had to agree for the service to run smoothly. Thepermission was required because of high volume of products coming inside thesociety at the doorstep of the consumers, which raised security concerns. The milkmen and newspaper boys were also trained on the rightproduct identification i.
e. they had some difficult times to identify productslike broccolis, different types of yoghurts etc.As the milkmen and newspaper boys visit your house or societyevery day, the concept of minimum order value is not there. You can order evena Rs. 10 product without giving any delivery charge. There are many products listed across all categories likefruits, vegetables, organic fruits and veggies, groceries like atta, pulses,honey etc. which are everyday use.
Personal care products, baby products etc.are also listed. Customer has to follow only one rule to get the delivery thevery next morning i.
e. you have to finalize your order till 10 P.M. everyday.After that the next cycle starts.Customers can also take the advantage of cashless payment, asthey have digital wallets integrated with the application. The milkmen and newspaper boys have to list their business inthe platform.
This allows the customers to customize the services, for example,if you are going for an outing for 3 days, you can pause the supply of any/allproducts for 3 days and go hassle-free just with a click of a button. The Team (L-R) Satish Shetty & Anuj Bishnoi Satish ShettyCo-founder of morningcartAlma matter:Ø University of Strathclyde, MBA (2002– 2003)Ø Marine Engineering And ResearchInstitute, Post Graduate Marine Engineering Training Course (1996 – 1997)Ø M.S.
Ramaiah Institute Of Technology,BE – Mechanical (1990 – 1994) Experience:Ø Head 4G & Broadband Acquisition,BhartiAirtel LimitedMar 2010 – Mar 2016 Employment (6 yrs1 m)Bengaluru Area, India.Ø Head Business Solutions, Future GroupIndiaSep 2006 – Mar 2010 (3 yrs 7 m)Bengaluru Area, IndiaØ Director Operations, GuidingSolutions Ltd Oct 2003 – Sep 2006 (3 yrs)UK & IndiaØ Marine engineer, Anglo Eastern ShipManagement LtdApr 1997 – Nov 2001 (4 yrs 8 m) Anuj BishnoiCo-founder of morningcartAlma Matter:Ø Ramaiah Institute of ManagementStudies/Sciences, MBA- HR (2003-2005)Ø B.E Mechanical – Bangalore University.Experience:Ø Associate Vice President, AnakinManagement Consultants Pvt LtdDec 2009 – Nov 2011 (2 yrs)Ø Unit Head, Planman Consulting Indiapvt LtdFeb 2006 – Oct 2009 (3 yrs 9 m)Bengaluru Area, IndiaØ Human Resource Specialist, InfosysApr 2005 – Feb 2006 (11 m) The FundingMorningcart.
in started its operationsin early 2017.Bootstrapping: They both had somesavings and didn’t seek for funding initially.It got a funding from Axilor Venture:A startup accelerator and seed fund of around 10 Cr.They have applied for “Summer ’18accelerator program” for further round of funding for this year. Success or Failure?IIIT Bangalore has incubatedmorningcart.
in and given them an office space inside their campus. They believein this startup and encourage their student to do projects with them. Theystarted with electronic city Phase 1 as their pilot. Now they serve thefollowing areas in such short duration:Ø Electronic City phase 2Ø KormangalaØ WhitefieldØ HSR layoutØ BTM layoutThey are planning to expand more inBangalore by end of this year and set foot in Chennai in the coming years. Theyhave a customer base of 25,000. Their average order size is Rs. 400 as comparedto Rs.
200 in last year. During my internship, I have attended calls fromcustomers who want their building/societies listed in our platform so as totake advantage of such service. The startup is definitely growing andmoving towards success. They are giving tough competition to Grofers,Bigbasket, Zopnow etc.
There are articles posted in Times ofIndia and YourStory about their unique concept of ecommerce platform and thisis raising the visibly to the investors.