The Mumbai-based, Kishore Biyani owned ‘Future Group’ soon plans to begin the door-to-door delivery of dairy products like milk, eggs and bread every morning to its customers. The service will be inaugurated in the coming two weeks in the metro cities as of now, but will surely reach to other cities later.
The milk delivery services have been recently observing a boost in the e-commerce sector and by the investors. The Future Group led milk delivery service can be availed simply by placing an order through a mobile app called Easyday, and the outlets will deliver the specified products within 2-3 km radius.
The retail group also provides the customers with a membership-based Easyday Club where they can register at Rs 999 per year and can enjoy offers on purchases for about 10% discount. Biyani has major plans to mark the country with around 10,000 Easyday stores in the area of 2,500 sq ft and also to expand the membership base to about 20 million.
Once the model becomes successful, Biyani also plans to make additions to the cart by introducing other essential products such as fruits, vegetables and grocery. According to RedSeer Consulting, online milk delivery is an addressable market of Rs 8,000 crore. Although milk delivery business gives a low-margin, it offers companies the opportunity to push other high-margin categories along with milk to consumers.
For Kishore Biyani, delivering milk and eggs is part of a bigger plan. The Future Group intends to start about 10,000 small stores in the recent coming years for increasing revenue from smaller format stores to Rs 60,000 crore from about Rs 5,000 crore currently. Milk delivery service could provide these stores an extra source of income. The owner claims that this new initiative of home delivery could generate around Rs 20 lakh per store per month of additional revenue.
The entry of Future Group in the milk delivery space will take the battle straight to hyper-local milk delivery undertakings such as Milk Basket, Supr Daily and the local doodhwalas. It might also stand as a competition to the present and upcoming e-commerce food delivery companies like Swiggy and Big Basket. Let’s look forward to what the Future Group has in store for its customers.