Online grocery delivery platform Grofers has made a re-entry into the fresh vegetables and fruits delivery segment. The company has rolled out the service in select areas of Gurugram and soon it will be available in other parts of the national capital region or NCR.
While Grofers had pulled the plug from delivering fresh produce in July 2018 on the pretext of unit economics, Entrackr’s sources assert that this time it has figured out a different approach in the supply chain.
“Unlike in the past, Grofers will source vegetables and fruits directly from farmers,” said one of the sources on condition of anonymity. “It has already started sourcing fresh produce from farmers in the vicinity of the Millenium city.”
It’s worth noting that previously Grofers had set up sorting hubs in locations such as Azadpur Mandi in Delhi to source vegetables and fruits. Entrackr’s team members also used the new service and Grofers delivers the order within two hours.
Grofers had stopped the on-demand fulfilment of fresh produce to focus on its private labels in core grocery and FMCG categories. Even during the Covid-19 induced lockdown, when there was a surge in demands of vegetables and fruits, Grofers distanced itself from delivery of such perishable items.
So, what has changed now?
Sources assert that Grofers has largely been used by households for monthly stock-up. Hence, the frequency of orders is barely two times in a month. “Relaunching of the category has been done with the aim to accelerate frequency,” said the second source requesting anonymity.
“So far, none of the e-grocery platforms has found decent traction in fresh farm produce as managing the supply chain in the category is cumbersome. Large investors are willing to back companies that can build frequent use cases around grocery and daily needs. Grofers wants to try this out for another chance,” added the above-mentioned person.
Entrackr reached out to Grofers for comment but they declined.
This is the second attempt by Grofers to build a use case around the company’s core proposition – grocery. Earlier this year, Grofers had also started offering electronic and fashion items through third parties. Entrackr had exclusively reported the development back in March.