Dunzo- Learnings

Taking money from reliance

1. Heavily relying on VC funds
2. Competing with cash-rich players in a tough market in a low-margin business
3. Really short-term plans with no long term vision

Actually when they launched - their initial version or model was good and attractive. Even though it was small market but still it was new and a real problem to solve were users wouldn’t mind to pay for the service.

But as soon they started to enter the competitive market like grocery delivery etc.. it’s started their downfall.

Did not leverage as the first movers Did not differentiate to retain customer or acquire new customers
Example - I use Swiggy .. so started using Swiggy genie ..why use Dunzo ? Should have targeted particular customer segments , markets to scale and keep competition away . Difficult space to be in, but full credit to it for coming out with the model and getting it established

Difficult business model. That’s pretty much it. Never made economic sense at sub scale. And not enough money pumped in to scale with burn.

Good idea but poor execution. Period