How the dabbawalas reinvented themselves in the face of COVID-19?
Business
The Dabbawalas of Mumbai are often seen lugging lunch boxes, or ‘dabbas’, in their iconic white outfit and Gandhi cap, across the bustling streets and crowded locals.
However, their model of delivery came to an absolute standstill during the COVID-19 induced lockdown amidst shutdown of local trains, the lifeline of their impeccable delivery model.
But first a little history
It all started in 1890, when Havji Madhu Bacche, a migrant in Mumbai was roped in by a Parsi banker to get his meal delivered from home to office daily. Many others noted the convenience and opted in for a similar service.
130 years later, this model was scaled up to 5,000 dabbawalas, ensuring timely delivery of home cooked meals to over 200,000 Mumbaikars daily, using their innovative delivery model.
Innovative delivery model
The dabbawalas use a combination of codes, numbers, and letters marked on the dabbas in various colors to determine the pickup point, delivery point, and the dabbawala’s name as shown above. They optimize their delivery time by relying on a combination of local trains for long distances and bicycles for hyper local deliveries.
International acclaim
Post a 2010 Harvard study, the system was awarded a Six Sigma certification, a hallmark of operational excellence. To put it into context – these semi-literate dabbawalas committed under 3.4 mistakes per million transactions!
They were also invited by the likes of Richard Branson, Dutch Queen Maxima, Prince of Wales and many more, all of whom were both curious and impressed by their novel zero-tech model.
Impact of COVID-19
The shutdown of trains, restrictions on movement as well as the societal shift to a work from home model, all called for the viability of this business into question.
With no government aid and minimal financial assistance from the modestly run organisation, most dabbawalas returned to their villages and took up farming. A few stayed back working as drivers/security personnel, or vegetables vendors to make ends meet. A 130-year-old organization found itself trimmed to 10% of its pre-COVID workforce.
From the ashes, rises the phoenix
Amidst COVID-19, they have found ways to reinvent themselves:
Partnership
Social has partnered with dabbawalas to make 600-1000 daily deliveries.
Cloud kitchen
Home cooked food preparation and delivery with weekly or monthly subscriptions.
Digital dabbawalas
Ease from home registration of rental agreements - including Aadhar verification, biometrics etc.
Marketing
With almost 400,000 touchpoints daily, they offer product sample delivery, brand comms etc.
Many miles to go
Their legacy might still be endangered until the unit economics significantly improve. Per sources, a dabbawala used to carry out 30-40 deliveries daily, earning INR 18K/month.
Post COVID-19, he is only doing 10-15 deliveries with additional fuel cost of INR 3K amidst train shutdowns, thus netting INR 5.2K vs India’s average monthly wage of INR 16K.
Even with volumes expected to pick up, they still have many miles to go.
Writer’s opinion
Dabbawalas find themselves at a unique intersection between food delivery and pureplay logistics competing with the likes of Swiggy, Zomato as well as Dunzo/Borzo (WeFast).
Whilst they have a proven model, they might need to integrate technology or double down on a focused offering to stay competitive. The next generation may not be as mindful of their legacy in the face of easy to use apps or AI optimised delivery routes.
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