For quick delivery to work, you need high density cities, and low cost of labor. NYC was really the only city in the US where the density worked but the cost of labor is too high when you are only delivering convenience items. Even when you're vertically integrated and you can take a margin on the items you're selling.
I'm guessing the cost of labor in India is low and supply of drivers is very high, thus enabling delivery with an AOV of $6-7 in high density cities. And it sounds like Blinkit has built an impressive number of dark stores (2k is no joke!). Not as well versed in China but my guess is that they also have an over-supply of labor (but doubt it's as stark as emerging markets like India/ Latam/etc), and it sounds like the AOV is slightly higher. The other nice thing about convenience items is that they can be batched more effectively than food. Speed matters but the product doesn't deteriorate with time like with food delivery. A burger and fries gets cold with every minute.. Toothpaste not so much.
It's been a while since I have looked into quick delivery in Latam but I believe there are a few companies doing similarly well because of the dynamics I mentioned above.
For quick delivery to work, you need high density cities, and low cost of labor. NYC was really the only city in the US where the density worked but the cost of labor is too high when you are only delivering convenience items. Even when you're vertically integrated and you can take a margin on the items you're selling.
I'm guessing the cost of labor in India is low and supply of drivers is very high, thus enabling delivery with an AOV of $6-7 in high density cities. And it sounds like Blinkit has built an impressive number of dark stores (2k is no joke!). Not as well versed in China but my guess is that they also have an over-supply of labor (but doubt it's as stark as emerging markets like India/ Latam/etc), and it sounds like the AOV is slightly higher. The other nice thing about convenience items is that they can be batched more effectively than food. Speed matters but the product doesn't deteriorate with time like with food delivery. A burger and fries gets cold with every minute.. Toothpaste not so much.
It's been a while since I have looked into quick delivery in Latam but I believe there are a few companies doing similarly well because of the dynamics I mentioned above.