BigBasket, the Tata-backed online grocery marketplace, is reducing its operating footprint from 76 cities to around 40 profitable markets as part of a strategic overhaul following the departure of cofounder Hari Menon after 15 years, according to inc42.com. The company is focusing on sustainable profitability amid shifts in consumer demand and market dynamics.
Hari Menon announced his exit in a LinkedIn post last month, reflecting on the early skepticism around quick commerce. Shortly after, reports emerged about BigBasket's plan to nearly halve its city presence. While the company denied scaling down claims, sources told inc42.com that BigBasket is recalibrating its operations and rethinking its business model to adapt to evolving priorities and cost structures.
The move comes as BigBasket faces challenges in the highly competitive online grocery sector, where quick commerce and scheduled deliveries coexist. The company had pioneered scheduled deliveries before the rise of 10-minute grocery services. This strategic shift aligns with broader industry trends where players are focusing on profitability over rapid expansion, similar to adjustments seen in other Indian e-commerce firms.
BigBasket’s recalibration involves concentrating on around 40 profitable markets, a significant reduction from its earlier reach of 76 cities, according to inc42.com. This marks a notable change in strategy as the company aims to build a sustainable business model in India’s evolving online grocery landscape.