Grofers is an Indian online grocery delivery startup founded in 2013 by two IIT graduates. It operates in 28 Indian cities. Initially, the founders facilitated grocery deliveries from local stores and supermarkets for customers. They aimed to provide one-stop delivery for local needs by partnering with shops. Grofers works on a marketplace model, partnering with local grocery shops to fulfill online orders placed through its app, charging the shops commissions ranging from 8-15%. While Grofers has seen success, it also faced initial challenges including delayed service, product quality issues, and shutting down operations in some cities.

1. 1
THE ROAD BEHIND THE GLORY OF GROCERY GIANT GROFERS
VARUN KESAVAN, RESEARCH SCHOLAR, E – MAIL ID – varunkesavan@yahoo.com
INTRODUCTION
The Gurugram based Indian on-demand online grocery delivery service Grofers was
founded in the year 2013. This e-commerce startup platform provides a variety of daily
needs products ranging from groceries, bakery items, baby care items and many
more to its customers. From the mobile application of Grofers, the customers can buy
and order their products at a scheduled time and the Grofers employees deliver these
items to the customers. Currently, the company operates in 28 cities in India.

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THE COMMENCEMENT OF GROFERS
Grofers was found by two IIT Graduates Albinder Dhindsa and Saurabh Kumar.
Albinder after his graduation worked as a transportation analyst at URS Company in the
USA. While working he met Saurabh Kumar and kept in touch with him with absolutely
no intentions of any entrepreneurial motives.
Both Albinder and Saurabh found that there was a huge gap in the delivery industry. They
both thought to tap the opportunity as it was the time when many startups were emerging.
They felt the need to sort the unorganized hyperlocal space in the transaction made
between merchants and consumers.
That is when they started to build a base for their startup. Their idea was to provide a
one-stop solution for the customers' local delivery needs by having an on-demand pickup
and drop services. This was to facilitate the logistics from the shops around their locality
like grocery stores, medical stores, and restaurants for the consumers. Initially, both of
them also facilitated the delivery of groceries for customers from the neighborhood stores
and supermarkets.

3. 3
THE LOGIC BEHIND NAMING THE BRAND AS GROFERS
The name Grofers is a combination of two words – Grocery and Gophers which
particularly means a person who runs errands.
THE MODUS OPERANDI OF GROFERS
Grofers work on a marketplace business model and might also be referred to as
the Hyper-Local on-demand logistics system. It aims to replace the need of consumers
traveling to the local shops to buy consumer goods rather than want them to order online.
This startup does not own any grocery stores or warehouses.
It just partners with the local grocery shops in the city and then sends their delivery boys
to pick the items ordered by the consumers from these stores. They accept orders from
their mobile application or the website. This Tie-up system helps the local grocery shop
owners get more orders and also Grofers make a profit from these orders as the company
charges some commission.
Grofers has tied up with the local shop owners and merchants for grocery and daily needs
goods in the local areas. Grofers charges these merchants some commission on these
orders. The commission ranges from 8% to 15% when the orders are below 700 and
charges 12% to 15% when the orders are below 1000. Grofers also charge a delivery fee
when the order is below the amount of Rs. 250.

4. 4
THE INITIAL HICCUPS FACED BY GROFERS
While in just a few years Grofers has got a lot of success in the market, but it had to face
many challenges and hiccups too. Whether it was their delayed service or quality issues
of the products, Grofers has seen many hurdles in its journey.
Also due to its unsuccessful operations, it had to shut down its operations on major cities
like Bhopal, Visakhapatnam, Kochi and so on. One of their initial challenges was also to
find the right people in their team which would align with the vision that the company
aimed to have and work upon it.